What happens if a dealership did not payoff the loan off on a trade-in?
WE TRADED IN A TRUCK IN JULY NOT KNOWING THE DEALERSHIP MADE A DEAL FOR THE TITLE PAYOFF. WE NEVER SIGNED ANYTHING AND DID NOT KNOW THE DEALER DID SO.WE THOUGHT THAT WHEN YOU TRADE IT IN IT IS PAID OFF BY THE DEALERSHIP. SO NOW THE FINANCE COMPANY WANTS $4000 MORE. IS THERE ANYTHING THAT WE CAN DO?
You first need to establish that the dealer was obligated to payoff the lien. Unless you can show that there was a meeting of the minds with the dealer to payoff the lien as a condition of the trade in, then you may be stuck paying for the car. Indeed, the dealership does not become automatically liable for the balance of the lien because you trade in the car. If you are getting sued, you should have the finance company contact the dealer and explain that the dealer was supposed to pay off the loan. If the dealer denies this responsibility you have a he said she said case and will have to file a third party complaint against the dealer in court if you are sued by the finance company. I suggest that you hire a lawyer to get involved here and review all the documents relating to the trade in. Do not delay.