How long does it take for a trade in to be paid off
Have you recently traded a vehicle in to a car dealership in Florida? Has your account fallen past due because the dealer hasn’t made the pay-off? Wondering how much time they have to make the pay-off on the loan?
“[a] motor vehicle dealer acquiring ownership of a motor vehicle with an outstanding purchase money lien, shall pay and satisfy the outstanding lien within 10 working days of acquiring ownership.”
Accordingly, a dealership must fully pay off a lien on a trade in vehicle within 10 business days. In the event they fail to do so, you may be entitled to actual damages, statutory damages, injunctive relief and your attorney’s fees. Best of all, there may be no up-front costs to you to pursue your rights.
If you’ve been taken for a ride, contact an experienced auto fraud attorney to determine your options.
Contact us today- Joshua Feygin, PLLC – 954-228-5674
I bought a new car two weeks ago. Had to trade in my previous car with negative equity due to it starting to have a lot of problems. The dealership told me they would take care of my old loan through Capital One. I’ve been checking the app the past few days, and my account still hasn’t updated. I even called Capital One yesterday, and the rep said there was no pending payments even though the dealership told me they sent a payment via ACH. I just don’t want to take a hit on my credit.
Should I just keep waiting or what should I do?
When customers buy a new car, many trade in the old one.
You may think when you leave your old trade-in on the lot you’re no longer responsible, but that’s not the case. Almost two weeks after buying her new car and trading in her hold one, a Dallas woman learned she was still responsible for payments on the old car.
Melissa Dexter and her husband Dalton Johnson have two kids and a golden retriever and they needed a vehicle that would comfortably carry them all. He wanted a 2016 Jeep Cherokee, so she went to Love Field Jeep Chrysler Dodge Ram with financing, a plan and cash in hand. She told salesmen she was not interested in incentives or payments.
“The price of the car and the value of the trade, we can make that happen,” Melissa told the financing team. “We already have financing. We’ll walk away with the car today.”
The Dexters traded in a 2011 Jeep Liberty. The dealer offered $185 less than what they owed on the car, which was based on a 10-day payout quote. That means the quote made March 11 was only valid through March 21.
“We think everything’s good until I look about five days later…and the car hasn’t been paid off,” Melissa said. “I start calling the dealership. I called the finance manager. I called the general manager.”
Melissa said no one called her back. On Day 11, the lender told her they hadn’t received payment for the trade-in.
“And now the lender wants me to make the payment,” said Dexter..
Many consumers don’t know that in Texas a dealer has 25 days to pay off your trade-in. During that time, you’re responsible for the payment and your credit could be dinged..
“At the end of the day, I owe that money,” Melissa said. “I have no car, but I’m legally obligated to pay that amount.”
NBC5 Responds contacted the dealership. A spokesman told us the dealership sent the check by overnight delivery on Day 11 and the bank received it the next day. The dealership also agreed to pay the extra interest that had accrued because they had not paid the loan in 10 days. Dexter confirmed that the dealership also paid that extra $185 she still owed on the trade-in.
Remember, if the dealer takes the 25 days allowed by law to pay off your trade-in and you miss a payment during that period, it could affect your credit. Late payments can be reported to credit agencies after 30 days. It’s important to communicate with your lender. If the lender wants payment, it’s best to do so and get reimbursed after the dealer pays off the trade-in.
Oregon Law prescribes exactly how much time a dealer has to pay off the lien in full. More specifically, the Oregon Administrative Rules mandate that a dealer has 15 days to pay-off he lien holder of your trade. If the dealer fails to do so an Oregon lawyer, such as myself, can hold them accountable.
If you think you have been ripped off by an Oregon vehicle dealer then call Ross Law PDX at 503.224.1658. Please remember the law is constantly changing, so do not rely solely on this post. Please contact an Oregon Lawyer if you think you have been ripped off, sold a lemon, or have been a victim of auto fraud.
Deals have to be booked and funded in order for payoff to go out in most cases. If it’s a corporate store, usually the “deal” has to go to the billing department and they verify that everything is in there if not then it goes back to finance for them to put anything they need in. Contracts need to get sent out to the bank for funding as well depending on how complicated the deal may be this can take up to 3 months to get fully funded. The deal will then go to accounting where they need to book everything and scan it in before they are allowed to cut any checks related to the deals.
There’s a lot associated with deals and it all depends on the dealership’s policies as to when your car gets paid off.
This is a very sneaky car dealer scam. It can cost you a lot and affect your credit history.
You’re expecting to trade your current vehicle for a new car with a dealer. What’s supposed to happen is the dealer will acquire a payoff figure on your trade and pay off your current car loan for you. The dealer will then add the payoff amount to your new car loan.
The scam happens when you get a call from your lender a month or so later and find out the car dealer didn’t pay off your old car loan as agreed.
Unethical car dealers use this dealer scam to pay you less for your trade than agreed or try to steal it from you by leaving your trade-in out of the transaction altogether. It sounds impossible, but these business practices happen in dealerships, and you should be aware of this dealer tactic.
When the lender calls you, you explain to them you’ve traded the car in, but that’s not a good excuse. YOU are the one responsible for the car loan, not the dealer. Your previous car loan is still in your name, and you’re liable until the dealer pays the loan off. All the bank knows is they have a loan with YOU, not with the dealership you traded it in with.
By the time you find out from the lender your trade’s car loan has not been paid off, you’re a month or two behind on your payments. Now you’re getting late payment marks and hurting your credit report.
You’re also responsible for making both your new car payments and your old car payments. If you choose not to make the payments on the car you traded, you may end up with an involuntary repossession on your credit report, further hurting your credit history.
You could try to sue if the dealer didn’t add your trade to the paperwork. An attorney will want to see the paperwork where the dealer is obligated to pay off your trade-in; of course, you will not be able to prove it. Make sure you read and inspect everything you sign.
The dealer will eventually pay off your trade-in if your trade is included in your paperwork. However, if you’re getting calls from your previous lender, the damage is probably already been done to your credit report.
My advice is to call your trade’s lien holder and let them know you’ve traded your car in and follow up with them within the time allotted to make sure the dealer pays off your vehicle.
Do I have to finish out my contract first?
No. Phones and other devices that were subsidized by a two-year agreement are eligible for a trade-in.
For those of you enrolled in a monthly device payment, you are eligible to trade-in for a credit or gift card. If the trade value is less than the remaining installment balance, then you will continue to pay the installment until you reach 100 percent of the cost of your device before purchasing a new device. If the trade value is more than the remaining installment balance, then you can apply it to the installment and become eligible for a new device immediately.
Can I trade in a device that is damaged or not working?
Verizon won’t accept devices that are damaged or not working, although you should always first check with a Verizon store sales associate for an evaluation. If you qualify, you can jump straight to the good stuff and continue shopping with a credit on your order.
Otherwise, you can visit Verizon’s Device Trade-In page and enter info about your device and its condition to get a preliminary offer—you’ll be notified of the final value of a credit after Verizon receives your device. Then, if signed into My Verizon, you’ll receive a credit on your account. Guest users will receive a virtual gift card by email.
To learn more about the process, check out this step-by-step how-to guide.
How long does it take to receive my gift card or credit for a trade-in?
If you turn in your device at a Verizon store, you can get an instant appraisal and a credit while you wait. If you choose to trade-in online, expect your gift card (for guest users) at least two weeks from the time Verizon receives your device, or your credit (for My Verizon users) within 1-3 bill cycles after appraisal. Overall, the entire process generally takes 4 to 6 weeks.
Trade-in and save.
Getting the newest phone doesn’t have to break the bank, nor do you need to keep a collection of old phones. Take advantage of Verizon’s trade-in program to get a new phone at a discounted price.
Have any lingering questions? Check out the trade-in FAQs page.