Dealership failed to pay auto-loan in a timely manner, wants money from me

[chickenndumplin]

What is the name of your state (only U.S. law)? California

I purchased a new/used vehicle approximately 6 weeks ago. As part of the deal, they were going to pay off my other auto loan. I got the pay-off from the finance company and was told they needed to contact a specific person when they call to pay it off. I gave all this information to the finance manager, told him who to ask for specifically and gave them the amount I was given, which was $1,000.

The pay-off was good for 10 days, the finance manager was made aware of this and they didn't call until day 14. At this time, the finance company told them the pay-off was $1800, they paid it no questions asked and are now coming after me for the $800, can they do this?

I spoke with the finance company and said it seemed extreme that the amount went up $800 in 4 days, they have not gotten back to me yet. The dealership is calling, wanting the $800 and I've been telling them that they dropped the ball as they should have called within the 10 days and when the amount was so much more than what I told them, why didn't they call me????

Will I have to bring them to small claims court for this and do I stand a chance?

 

[justalayman]

have you confirmed with the bank the payoff went up $800? If they bank says it did, find out why. That is obviously an extreme amount to increase such a small remaining balance.

tell the dealership to hold their horses until you contact the bank and find out what happened.

 

[chickenndumplin]

Yes, I spoke to the finance company and they said they were giving me a special deal, to pay off the account and close it. When I explained the situation to them, they said I was not responsible as they did not honor their part of the bargain by paying it off in a timely manner. But the sales manager keeps calling me and telling me he doesn't care what the deal is, he's showing I owe them $800, won't even listen to me that it was paid outside of the 10 days.

 

[justalayman]

That sounds to be an absurd amount of difference just because you were paying off the remaining $1000.


While the dealership is ultimately at fault here, I would suggest speaking with the bank to see if they would consider extending that $1000 payoff, or at least that plus whatever minimal interest charges that would have accrued in 4 days between then 10 day period and the date it was actually paid off. If you cannot get the bank to reconsider, simply tell the dealer; NO, it is your fault and I am not going to lose $800 due to their failure.

 

[OHRoadwarrior]

CA is one of many states that does not have a law requiring a dealer to payoff a car within a certain date. OP should have specified a payoff amendment to the contract. As they did not, the original terms, which surely provide for collection of the $800 difference apply.