February 25, 2006

Hi Tony

I am concerned that my close friend may have lost her car without a way to get it back. When she went to buy a car at a Washington state car dealer, they offered her a $500 trade in on her car.

They sent her home in a new car with the understanding that financing would be arranged. After the "attempts" to finance fell thru they asked her to return the car and offered her a loner. Apparently they had sold her car before securing her financing.

They assured her they would get her financing and had her sign papers they said were necessary because it was taking longer than expected.

Now they have told her they can't help her unless she can give them $8,000 down on a car! They want her to return the loner and say they will cut her a $500 check for her vehicle that they sold. This will leave her and her children without transportation.

Is there any recourse she can take? Can they legally sell her car without finalizing the paperwork on her purchase? Any guidance you can offer will be greatly appreciated.

Mrs. Karleena G.

Answer:

Hi Karleena,

Your friend is a victim of a practice that many car dealers engage in called the "Spot Delivery." You can read more about it at Beware of the Spot Delivery! and on my blog at: http://www.insidercarsecrets.com/2005/11/spot-delivery-disaster-waiting-to.html.

This is a horrible tactic dealers use to hurry customers down the road in their new vehicle before the financing is approved. They do it so people don't have time to change their minds about the car deal.

Some states are starting to put forth legislation making this practice illegal. I am not familiar with the laws in Washington state. My advice is to contact your state's Attorney Generals office to see if there is any recourse for your friend.

As far as them selling the trade I can't imagine that it's legal to do so before the deal is complete, but again, I'm not familiar with the laws in your state. Your Attorney General's office can probably answer this question as well. If not you may have to consult with an attorney to determine where your friend stands on this.

All my very best...

Tony Iorio