Dealer FORCES Customer To GIVE BACK CAR After Buying It

[@Adiscretefirm]

So you're telling me employees of a dealership lied, cut corners, and acted illegally? Shocked 🙄

[@doom4067]

If the dealer makes a deal and gives the customer the keys, the dealer needs to honor that deal. It might require the dealer to become the financier.

[@stevef68]

Steve Lehto says send your payments to the dealership if this happens.

[@user-xg3tp9rw4j]

@@stevef68 I was about to make this comment.

[@jerrylundegaard2592]

Spot delivery occurs every day. Usually spot delivery is not an issue. The dealer F&I manager is a professional and is expected to know if a customer will be approved by the lender. In most instances the customer never knows the financing was not approved at delivery as approval is obtained the next business day. Spot delivery becomes a scam when the F&I manager allows the customer to take possession of the vehicle knowing the customer will not be approved. That F&I manager and sales manager is hoping the scammed customer will be so enamored with the vehicle the customer will quickly agree to different terms. Every sales contract includes a clause which states the deal is subject to approved financing. Most states limit the period in which the dealer may demand the vehicle be returned if the financing cannot be found. If the dealer requests return of the vehicle within that time frame, the customer must return the vehicle and have the deal unwound. Or the customer has the option of agreeing to a different deal. If the customer does not agree to a new deal the dealer is legally required to unwind the deal and return the customer to being whole (e.g.; deposit returned, trade returned). If the dealer requests return of the vehicle due to financing not being approved after the allowed period, the dealer must honor the deal and the customer does not have to return the vehicle or agree to new terms. If the request for return of the vehicle is made within the specified legal period and the customer does not return the vehicle, the dealer may repossess the vehicle. If the request for return of the vehicle is made after the specified legal period the dealer is not legally allowed to repossess the vehicle. If they do, the customer has legal recourse.

[@southieinthehouse4050]

SPOT DELIVERY IS ALWAYS SUBJECT TO CREDIT APPROVAL, THE CUSTOMERS ALWAYS SIGNS SOMETHING SAYING THEY WILL VOLUNTARILY BRING THE CAR BACK ,THESE PEOPLE HAVE BAD CREDIT MOST TIMES,IF THERE CREDIT IS THAT BAD I PERSONALLY WOULD NEVER SPOT DELIVER THEM ,I DONT FEEL BAD FOR THE CUSTOMERS THEY CREATED THERE CREDIT SITUATION

[@tombob671]

Most of the times the lender can " tattoo the loan" aka cosign it.

[@chrisdamonsworld]

OMG!!!!! THIS HAPPENED TO ME!!!! TITLE AND EVERYTHING!!!! They wanted me to return the car because they couldn't get me finances for 2000 that was all left on the car. They wanted me to return the car but didwant to give back my money. They repo'ed my car so I have to get the State involved. Got my money back and all taxes. Union Auto Sales in Illinois. Found out they were bad on that stuff as well

[@leonardsmith1175]

I know them. They have been around for decades and tried to do me dirty 40 years ago. Why do you think people say used car dealers are shady.

[@1968CudaGuy]

I was young and dumb and lost a 1971 Pontiac Firebird T/A that I bought from an unscrupulous dealer who never delivered the title after I paid for the car. The original owner of the vehicle waited till I restored the interior and had a repaint done before he filed a police report that the dealer had stored the vehicle for him and it was not for sale. Needless to say he got the car back after the interior was removed and the entire car was sprayed in aircraft stripper right out in front of my house.. I kept the heads, intake, carburetor, complete exhaust, and transmission..

[@adrianbradshaw4956]

NEVER under any circumstances return to a dealership to “resign” paperwork. Not sure about other states but in Texas buried in any car sales contract it explicitly states the dealership itself is extending you credit and may reassign it to a third party (sell your deal to a bank) and in the event a bank doesn’t accept to buy the deal the terms of the contract stand with the dealership itself and your payments are to be made to the dealership! If people would read they’d realize they have much more rights in transactions than they think.

[@CD-vb9fi]

They have rights sure... "if the state" allows them to exercise them. Consumer protections are largely a complete joke. Businesses already know and actively "plan" for the fact that they can screw over most customers and even "if" they get caught the government will make sure they are "lightly" punished often making it more profitable to just keep breaking the law and eating crow on the few that manage to win their "rights".

[@JeffreyAdams-v9d]

What a beautiful story finally the dealer gets it up the rear. They lie and defraud people every day. Bravo

[@mikebal7777]

Spot delivery scams are really bad, and many states made them illegal. I personally have experience with a dealer who called me up demanding I resign at a higher rate, the finance guys face was priceless when I walked in 3 hours later with a check to pay for the car in full. He actually tried to tell me I had to sign at a higher rate and use their financing because I signed a loan agreement. I really feel sorry for customers who don't know better.

[@garyweber7139]

It's been known for decades ever since there has been car dealerships new or used that honesty and integrity is a rare trait. The few times I tried to purchase cars new or used from a dealer I was lied to, so I've never bought a car from a dealer. I'm approaching 70 and I'm fairly certain I never will.

[@randywilliams4325]

Many years ago I worked as a repo man . Got 2 vehicles where the dealer let the car go before they had the customer financed . I guess the dealers could not get the cars financed . Both the vehicles I pulled in had lots of use on them . Dealers should not release vehicles until the financing is secured.

[@Akecherfd8424]

Spot delivery should be illegal. No vehicle should leave dealership until everything finalized.

[@karabinb4514]

Agreed 💯 %

[@lovon4382]

I know spot delivery is illegal in the state I live in. If they do it and financing falls through then the dealership becomes the bank and lienholder at the terms on the paperwork.

[@dog_guy-c8x]

We have spot delivery here in Canada but everything is iron clad before you leave the dealership. Meaning the loan has been approved ownership has been changed and then your on your way.

[@flyingsolo242]

​@@dog_guy-c8xyeah, in Canada it takes a few minutes for credit check and financing approvals (or not).

[@DontCryAboutIt]

@dig then it's not spot delivery

[@MrDamien1963]

The same thing happened to me back in 2002 when Chevrolet debuted the Avalanche. I test drove a red one and took delivery of it during a memorial day sale. Had it a week when the stealership contacted me claiming my credit was no good and to return the truck. Even though I had my credit checked prior to buying it, all I had in my possession was a buyer's order. And they had promised to send the paperwork. They ruined my credit by supposedly running my credit multiple times. Fortunately they gave me back my trade in and one and a half months later Ford Motor Credit approved me on a brand new F-150. Which I didn't have to be ripped off on.

[@MattValente-s5d]

This happened to me as well. luckily I had a good friend let me know about the Bushing Law. I then called the dealership and said those two words. BUSHING LAW! They gave me the tier 1 credit that I drove the car off with over a month after the fact. Bushing is a type of auto dealer scam that occurs when a dealer changes the terms of a sale agreement more than four business days after the deal is signed. It's also known as "spot delivery" or "yo-yo" sales. In Washington state, bushing is prohibited by RCW 46.70.180(4) and is considered a violation of the state Consumer Protection Act.

[@fishman6364]

Great description, thank you

[@LEVELMotorsports]

Michigan resident here. I’ve bought a lot of cars over the years (65) so I can weight in on the title situation. If you buy a car at a dealer in MI they do the title work for you. Up until a year and a half ago or so Michigan law did not send the title to the bank. They would send the title to the customer who purchased the car but it would show a bank on the title as the org that financed the vehicle. That title couldn’t be transferred to any other person without a stamped sign off and letter of payoff from the lender. In the last year and a half though the state holds the title as a “digital title” and after the vehicle is paid off a paper title is mailed to the owner of the vehicle. I don’t know when this all went down but the digital title thing was recent so likely she did get a proper paper title with lien holder information on it. Also likely the wrong lien holder by the sounds of things.

[@LADETROIT]

Exactly. When I lived in Michigan you get the title right away but the lender's name would also be on it. you had to apply for removal of the lender after it's paid off.

[@TheodoreWeiser]

Yeah Oregon works that way too...we have a copy of the title with lender shown on it

[@138152930]

The digital title is a pain in the ass if you want to sell the vehicle and get the lein removed and the state doesn’t always mail you a paper title once the lein is satisfied, it’s not automatic.

[@michaelvanhorn3271]

2020 according to the article

[@nefertaridaempress]

Facts… I was trying to figure out why MI made the changes as well as I am a Michigan resident who purchased a vehicle in July of 2020 under the new changes. I have my theory as to why MI made the changes.

[@BillyBobDingledorf]

If they would have sucked up the repossession costs, odds are the customer would have not made a stink. Instead, they wanted the customer to pay for their mistake and it costs them.

[@doom4067]

I think she would have been just as pissed off if they had used their own money to steal her car. We typically don't view car dealers as the most honest people in the world, but we still expect them to honor contracts.

[@TaylorZ2]

My thoughts exactly...

[@servusvero]

@@doom4067 thats all companies, they are all evol

[@servusvero]

@@doom4067 same with banks and government, the dont honor there agreements so ive checked out of he system

[@tHebUm18]

A free car is a free car, good on the customer for twisting the knife after the dealer (read: scum) screwed up and left themselves open to it by legally giving them ownership without payment.

[@noneyabiz8225]

This happened to me 38 years ago at a Mitshubishi dealer. Why would they let a car off the lot without a loan set is just plain stupid..WHY would they do that?

[@lpad9651]

$350,000 was just the punitive damages. The total award is $824,000. Judgment in Wrongful Repo Case.

[@RootBeerGMT]

Ages ago, a kid trades in his mom’s Honda on a brand new jeep in Tampa. The Honda was titled in both son and mother’s name. Deal was done. Mom said no. Dealer refused to speak to her. We sent a few letters and got no response. Wrote to the police, no response. Mom just wanted the car back and to unwind the deal, since she never signed. A civil theft notice was sent for the Honda. No response. 30 days passed. We filed suit. The dealer has to pay three times the value of the Honda plus attorney fees.

[@Ben-jq5oo]

@@RootBeerGMTHaving two people on the title is a huge risk, for precisely this reason. I don’t think we allow this in Australia or the UK?

[@Printknight528]

Damn a car dealer can’t even tell the truth

[@BillyBobDingledorf]

$350K sounds like a lot, but beats going to prison for grand theft auto.

[@RobertMoore-x7b]

Probably included Punitive Charged since they had a history of doing this.

[@jghost2125]

Steve Lehto also has a video on this. $350k was what the plaintiff received, with all the legal fees it cost them $826,000.

[@BillyBobDingledorf]

@@jghost2125 Once again, the real winners are the lawyers.

[@michelero4297]

@@jghost2125 That's rich... they should just let her keep the car and did like our video creator did and chalk it up to experience.

[@pammurphy4300]

The award was actually $824,000 the number on the article is only for the punitive damages that the dealership appealed and lost.

[@Sailor376also]

No. You mistake the dealer as ethical. What actually happens is yes, the paperwork, monthly payments all are worked out,, possibly with a lender,, possibly with the dealer financing,,, at a nice low rate,, nice monthly payments,, all signed and sealed. But the dealer has no intention of honouring this deal. 5 days later, 3 weeks later. The dealer calls to say the financing fell through,, come back we must write a new contract at a substantially higher rate and payment. This note is either a sweetheart deal with a lending 'institution',, credit card rates and credit card sized penalties if late. and frequently the dealer finances because the interest rates are usurious. AS IN THIS CASE. When the guy did not come back in to have his contract rewritten, the dealership repossessed the vehicle, with the aid of the police, they just tell the cops they are repossessing the vehicle and the cops just say okay., and in violation of state law. Don't cut this dealership any slack. This was intentional and they did it to dozens of others.

[@DMD78710]

Liking your videos, since my injury I had to switch professions and I'm a field investigator for a major repo company. What that dealer did was completely illegal. Funny enough I had the same "spot experience" when I was younger. They threatened me with Police arrest all kinds of things. If I only knew then what I know now... Live and learn, keep 'em coming brother.

[@jes8925]

In some states the owner gets the title if there is a lien on the car. The lien holder is placed on the title. When paid off you get a lien card state that the title is free and clear. I bought a car once and about two week later said they needed to tweak the deal. I signed all the paperwork finance was approved. they wanted to change the terms. I put the keys on the desk and asked for my trade in back. The look on the sales persons face was priceless. I walked out with my new car.. They were known to unwind deals and reconfigured the deal

[@David-jm6yo]

I sold cars back in the mid to late 80’s with fast track dealers. It was a customary practice to spot car sales and some were to customers that couldn’t finance a western flyer wagon. The Finance office F&I guy would put people in cars full well knowing he couldn’t get them handled from the banks. Then in a couple of days when the person was confirm not to able to be financed, it was up to the salesman to retrieve the car back to the dealership. I had to go to people’s homes and knock on the door a few times. Very sketchy times. Salesman earn every penny they make.

[@paullilly-b5o]

They better make the finance guy go get it.

[@blitzevans4273]

I'm thinking your accidental gift car changed someone's life. You were rewarded with a KZbin audience that appreciates your advice and sees that honest people are out there. Thank you Brandon!

[@musicloverme3993]

Brandon found at least one dishonest person. If it changed their life, they still didn't say. "Thank You". Wouldn't you think that's the least they could do?

[@blitzevans4273]

@@musicloverme3993 I was looking for a positive in a bad situation. I forgot the internet was reading this.

[@simonchen6698]

@@musicloverme3993 Nah I would've preferred a Christmas card.

[@blitzevans4273]

@simonchen6698 lol. I would have wanted the $ like every else.

[@stevenlipps1176]

Interesting video that hits close to home. Many years ago I purchased a vehicle and financed it at the dealership. I was quoted a rate and signed all the loan docs at closing. I also surrendered my trade in. Several days later I got a call from the dealership saying they had in error quoted the wrong (lower) rate and wanted me to come back and sign new loan docs. I should have laughed and hung up. But being an honest person I told them that in that case I no longer wanted the vehicle and that if they could return my trade in I would be happy to return the new vehicle. I never heard another word from them.

[@audreystickney1813]

When my husband and I were stationed in Michigan. Michigan was a non title holding state. We had the title until we moved to a base in CA then they took the title. That was a few years ago so it could have changed.

[@kenbrown6095]

THANKYOU! i actually do feel better, my son got ripped off on a bus he bought for a schoolie. "brand new motor" and i too still am bitter. so now i can share that bitterness with you! :)

[@AbcDef-iq4no]

There should be a federal law that dealerships can't relinquish or deliver a vehicle to a prospective buyer until financing is finalized and securely in place. If a dealership ignores that law and turns over a vehicle to a prospective buyer then it would be on them if the financing doesn't work out.

[@shonnie089]

In California, I received the pink slip in the mail after my purchase and was quite surprised. A couple of days later, my credit union called and asked that I send it to them, which I did. I didn't ask how this happened and just thought someone at the dealership goofed up because they were remodeling the showroom and the offices so the paperwork was switched around. I never imagined that this type of thing happened at all until watching this video.

[@jackblack3886]

I could feel your frustration as you were telling the free car story. A car giveaway would be more satisfying! Thanks for sharing!

[@Scorpion_CR1]

I'm in Massachusetts and we bought a used Mazda 6 about a decade ago. It was a small to mid size used dealership, had great reviews. The car was 16999. I was very hesitant at first, but the dealership owner and the financial manager said we have financing, just give it a couple years and come back and we can refinance it at a lower rate, we work with a bunch of banks. So we took a loan with dealer financing for 363 a month. Me and my wife went back 2 years later. So we said hey we're back, didn't miss a payment we could use your help refinancing for a lower rate. The same owner and finance manager said sorry we don't do refinancing but you can trade in for another car and we can finance that. So in shock, we said no thanks and we were able to refinance thru a credit union locally. To this day that is my worst experience ever buying a car. I really wanted to plaster negative reviews all over the place at the time. In retrospect I should have.

[@dvaritek434]

The dealer is not a bank. They sold your car note to the entity that you made payments to every month. Blaming the delaership when they are not a buy here pay here is kind of weird. Like why would you contact a real estate agent if you wanted to refi your house? You would contact your lender first anf if they could not help you, contact another lender.

[@sniperic1]

The Nissan place here in town did the same thing to me. I wanted the Maxima, I could afford the payments but our credit sucked. They sold us a Altima the smaller car and told us keep it for 2 years come back and we trade you up to the Maxima. Never missed a payment, never late. Went back same salesman and he was like nope can't help you. he was a total liar and scumbag. I wish I had recorded the conversation when he said they trade us up, live and learn, back in 97 the internet was mostly AOL and not like it is today, posting a negative review really did not do much back then.

[@Scorpion_CR1]

@@dvaritek434 if you only buy a car every 10 yrs then why would I not believe the owner of the dealership and the finance manager of the dealership? Are you saying that all dealerships that do this should be financially destroyed by having their reputation ruined by the people that by their cars like me?

[@aaaaaaaaaaaaa373]

> the dealership owner and the financial manager said If somebody's trying to get something from you, anything they say but won't put in writing is a lie. Salesmen, employers, and government alike.

[@Scorpion_CR1]

@@aaaaaaaaaaaaa373 if people didn't buy cars from small to mid size dealerships, they would only have flagship dealerships and private sellers around. Why would I not trust the owner and financial manager of a dealership that had a ton of good reviews

[@BB-ly4rd]

Michigan is a title holding state. We always get the title when we purchase vehicles.

[@Upracefan]

Michigan just recently became a title holding state. It is optional still.

[@bakechef781]

Even though the customer was kind of a dirt bag, kudos to you for doing the right thing, so many people refuse to take accountability for their mistakes.

[@ramonburgos6351]

This was a common tactic used in California back int he 90's. Specially with young buyers. They will call you to return the car two or three days later unless you could come up with a few thousand dollars for "down payment". Happened to me once and I brought the car back. I also know someone who the dealership kept some of the down payment for "use of the vehicle" for the few days they had it until they found out it was not financed.

[@allett19]

On behalf of the person who got the free car. Thank you! Made up backstory they were exactly $3000 behind on child support and this kept them out of jail and helped feed a kid :)

[@TheodoreWeiser]

Maybe they paid it forward and bought a bunch McDonalds burgers for the people behind them in the drive thru.

[@Patrickherrero]

so fraud and theft(grand theft) is ok in your eyes. if the back story is true why were they 3k behind on child support? So the thought of insurance is false because they didn't have the money to pay for it. so you crash in to someone to bad let their insurance take care of it. so you are confessing to theft to keep from going to jail. great logic. Brandon's crew was stupid in not making sure they got the money but if Brandon's company takes care of the registration how did they get title?

[@allett19]

@@Patrickherrero If you've heard of Dave Ramsey he calls things like this a "stupid tax". It is a mistake that you learn from that cost some money. Being upset about it won't make it right so you react with what you have control over. I'm not sure I should respond if you think any of these comments are a reflection of ethics.

[@doughensley6202]

It is a reflection of ethics if a person says they paid for the car when in fact they didnt... and good for the guy in the video to think "we would lose in court because we the dealership messed up" to not fight the unethical guy who said he paid for the vehicle when he didn't. Lie is a lie is a lie. And lying is unethical and wrong. The hypothetical presented by the initial poster doesn't change the fact the guy got a free car unethical.

[@allett19]

@@doughensley6202 I said "These comments...........". I meant the comments are not about if the guys actions are ethical or not. OBVIOUSLY what the guy did was unethical...... However, the comment about how Brandon should respond was not about the ethics of the guy who stole the car's action.

[@brandonsheffield9873]

Thats why new or used go to the big dealers. Ford has done me right everytime, my latest PU truck they got me 2% interest rate in 2021, that allows me to nearly 25% over the minimum payment which reduces my loan by 6 months.

[@terrydlewis8681]

I had the same situation a few years ago when i got my daughters car. They gave me the title in the mail and we never made the first payment at that time. I went ahead and let them know of the situation and started making payments anyway.

[@tespenkr9924]

Their first mistake was giving the keys to someone without accepting payment.

[@luismoreno564]

They put down 2k

[@tespenkr9924]

@@luismoreno564 Then they sold the car for 2k, not a penny more.

[@gregmcwilson7538]

Appreciate the content Brandon. Lessons are learned via human communication and understanding the importance of following steps. I’m sure that your “experience” with other humans, were savvy , talkative enough to distract an employee from following steps. Role play in 2 or 3/team and plot to circumvent the current “process” of closing the deal on the vehicle 🚗. In this New World of electronic everything we tend to assume the best without thinking of the worst. Slow down we all know the process is a bit time-consuming from start to finish. Remember the phrase. “Haste makes waste!!” Wishing you, your family and Team CQA, continued success. Sincerely yours, Gregory J. McWilson

[@daved7024]

That customer that stole your car should be charged with retail theft. It's too bad our justice system is so corrupt that individual would be setting in jail right now. Honesty is the best policy 😊

[@scottysgarage4393]

Vehicles leave my lot when I have the money. Cash, acceptable check, electronic, whatever. No sale is worth the potential problems.

[@stephenmiller4502]

Michigan use to issue the title directly to the purchaser. This changed in 2022. Now the LEIN holder holds the title

[@jakeflythehi]

In Michigan it's very common for the borrower to hold the title of the vehicle. It will say on the title that there is a lien on it and who the lien holder is. The only time I ever didn't have my vehicle title is when I bought one in Indiana.

[@Platoface]

FYI: A spot delivery, also known as a "yo-yo sale" or "conditional delivery," is a practice in the new car business where a dealership allows a customer to take possession of a vehicle before the final approval of financing is secured. The customer drives the car home the same day, often under the impression that everything is finalized. However, if the financing falls through or the dealership is unable to secure the terms initially promised, they may contact the buyer later to renegotiate the deal, which could include higher interest rates, larger down payments, or other changes. If the buyer does not agree to the new terms, they may be required to return the vehicle. This practice is controversial and can sometimes lead to legal disputes.

[@MarkStockman-b4j]

Had this happen once at an honest dealership. Bought a used Honda from our local Honda dealer on a Friday. Was supposed to be financed through Honda Motor Credit. Dealer calls me on Monday, says I got turned down based on the age of the vehicle. ??? We have excellent credit (~790 at the time, great debt/income, no late payments) so definitely not that. Dealer apologized, said they work with tons of lenders, and we'd be financed for a good rate before the end of the day. And they made it happen. Same rate, or so close as made no difference. Still lower than our credit union.

[@terrymartin7944]

Don't worry about it God will make it right with money or what money can't buy ...Turn this deal into a blessing for your dealership... How about having a raffle & giving a $2000 car away every year to customers who buy a car from your dealership in 2024 & beyond you can pay for the car by just adding a extra $5- 20 to prices of the cars you sale... that's would be a win win for your dealership.... God Bless You Young Man

[@mr.foxwiz1653]

So God will make it right, but have a raffle? Ha ha ha. You can just take that God thingy out of your post

[@patndave4919]

I hate that a customer did you that way. Be sure tax preparer knows. Can you put up a cork board like the ones a diner uses for hot checks? And yes, let's hear the story. I have a story. I bought a compact truck int the 80's. My employment, credit bank checked out, but three days later they still needed my wife's employment verification. She wanted to quit her convenience store job because she had to call the cops on a drug dealer working out of the parking lot. I didn't want to lose my truck so I had to tell her to hang in there. I understand what you are talking about.

[@Steve.Cutler]

You will never forget that free car because you know just how wrong that was for them to do.

[@Scott-x4]

In Michigan once the paperwork is signed the dealer is held on what was signed. The dealership is responsible to cover financing for a vehicle if they do something like this. They end up needing to carry the paper and the loans.

[@alnpurcy9147]

This exact thing happened to my sister and myself in totally separate circumstances. Kieth Pierson Toyota in Jax tried to call me a week after bringing my Tundra home. They wanted me to restructure my deal Or bring the truck back, I said no and I want my car back. They had already sold off my trade.

[@swordevil742]

Happen to me with my first new car in 2007. Had to get my dad to co-sign a week later. No credit history bc I was 22 great job and a large down. So embarrassing now I have excellent credit. But I originally wanted to do it on my own.

[@genxfurfeelings]

In Michigan, the title comes to the customer, but the title has a lean of lender stamp on the title. When the loan is paid off the loan agency will send a competition of loan paper, then you take title and loan pay off paper to secretary of state and they will issue new title with only 1 owner on title. I live in Michigan, and this is how it works. Actually she was awarded $394,433.75

[@timkis64]

when i bought my car in md,i knew it wouldnt be on the road for a while, the dealer sent the title off to the DMV, & i got it in my name from the state about a month later.but there was no lien either & no tag transfer.hauled home on a rollback.

[@simonchen6698]

"They didn't give me a Christmas card or anything, for a free car" LOL!!

[@alanhopes4082]

Michigan is a title holding state You can look up a list of states where the customer has possession of the title regardless of lien status. Some if not most have a two-part title where a portion goes to lien holder and the main title goes to owner.

[@itsking2u]

You interview Steve latho he's a goat on things like this.

[@johndunn678]

And He is an Attorney in Michigan, this case is in his territory

[@stuglenn1112]

He actually did a video of this exact scenario. Basically you have a signed contract with the dealer to sell you the car at a given interest rate over a given term. If the financing blows up that contract is still valid between you and the dealer, what you do is inform the dealer you'll be making the agreed payments per the contract directly to them. Yea they are going to be pissed about it, but if they repossess the car or anything like that you can sue their balls off like this lady did.

[@itsking2u]

@@stuglenn1112 I remember that one.

[@jeremycole3008]

been watching Brandon for many months, and didnt know he wouldn't hand over a title for a cash deal. Not sure I'd be a customer of Brandon's if i laid out cash, and didn't get the title right then and there, then no way Im leaving money with him. If we go together to their DMV, sure. A large dealership doing that, sure,I get that. I hand over $5000 for a vehicle, and NOT get title, no way. Ill buy it outa someones yard.

[@MX-CO]

We used to do that all the time at a big Chevrolet dealership I worked at. They called it rolling them. It was a huge place that used to sell 800 cars a month.

[@888jimm]

Why is my commission check - 600.00? you had two unwinds :)

[@MX-CO]

@@888jimm yup, or a $4000 gross drops to $100 mini, used to happen quite often

[@888jimm]

@@MX-CO - 😂😂

[@MX-CO]

@@888jimm They did it daily

[@Hank_W6IR]

You could have at least slow-walked the paperwork to the DMV on that unfortunate deal. "Yeah, I'm pretty sure we filed the paperwork for you. Let me look into it." Right after I get back from vacation.😎

[@RootBeerGMT]

I know a guy this happened to. He had bought a mustang GT and was one proud papa. Then they took it back. It was very embarrassing event for him.

[@zaxbysfixit]

Happened to my brother when he was younger. They made a deal, then said he couldn't afford it, took it back.

[@briandavid4294]

Whether they leave with the title depends on the state. I bought a car and financed it in Delaware and got the title when I paid it off, in Oklahoma they gave me the title and the lien is listed on the title. After you finish paying, the bank gives you a lien release. It's different in every state.

[@MrJeffcoley1]

In this case, given the alleged screwups, one solution is the dealer “totes the note” on this car. I worked for a car dealership in Texas. When we had a customer who was going to be a challenge getting financing, but they believed it was doable, they would “spot “the customer in the car. Which means they would sign a loaner agreement, allowing the customer to take the car home, but very clearly it was stated, this was contingent on the loan getting approved by a lender. Most of the time we were successful, but occasionally we were not. But it was completely transparent that the customer had not yet purchased the car. This was just a loan agreement to drive the vehiclein the interim.

[@serenityb5816]

Oh my lord. Back in 1987, I bought a Chevy nova. One day later, I got a call from the dealership telling me to bring the car back because they did the paperwork wrong. I ended up with a good deal. I didn’t know any better, so I brought it back.

[@billyrodriguez9499]

Good information and video Brian!

[@m.cigledy6769]

The $350,000 was only punitive damages. With the actual cost of the vehicle and loan, court costs, lawyer's fees, etc, the actual judgment was around $825,000. The lawyer fees were over $400,000.

[@ericbentsen1785]

The lawyers fees dwarf the punitive damages, no wonder the punitive damages is so high.

[@deeznuttydeals8563]

How the hell in 2020 was anybody denied a car loan?? On a similar note, the same thing happened to my wife when she bought her brand new Mazda 3 in 2005. Dealer gave her the car before financing was settled, but she was led to believe Mazda would finance her. 3 days later, dealer says we need it back, you were denied. Oh, and you owe us depreciation for the mileage. My wife said nope. You told me I was approved, figure it out. When the dust settled, she had to bring an extra $1000 to the table and Mazda financed her.

[@ewanfraser]

I got sent the title on a financed car. The credit union politely but firmly requested it.

[@timothyweers8054]

I got caught up in the similar situation, the only thing is that I had to call the dealership to find out if the loan went through. They told me to come in and get the paperwork straight. They ended up signing me for a different terms which this would be #3, and they demanded that I sign the new contract or they will forge my signature and charge me for abandoning the car on their lot. I was ready to leave the car since the contract was dissolved. They said that when I left the lot with the car, it was taking possession and they didn't want it back. So I ultimately signed the paperwork under diress.

[@ejkrakowiak6905]

Brought a Ford Ranger from a family friend. I paid her and she gave me the title but she kept truck until I came back with paperwork proving I transferred title and registered. I was perfectly cool with her deal

[@MarkStockman-b4j]

My BIL sold one of the several* International Scouts that he had rolled over in a ditch. Folks who bought it never transferred the title. Years later he gets a call that his Scout was found abandoned way off in the woods in the Adirondacks. Since it was still titled to him, he was responsible for getting it hauled out of there and taken to a junkyard. * Yeah, he didn't learn anything the first time. Or the second. Like Granddad said, "You don't learn anything the second time you're kicked by a mule."

[@mattevans1643]

I agree with her approach. I will give you title, you go get it in your name, then you can have the Vehicle. I see nothing wrong with that. They just trying to make sure all the legal stuff is taken of first.

[@fishman6364]

Very common with repeat customers, its quick out the door, sale negotiation done! Onto next sale

[@kongzmindset.7561]

Michigan is a no lien holder state. The customer holds the title during the loan duration. After they pay it off the customer gets a lien release letter.

[@aday1637]

When you deal in paper and you screw up it's on you. I've had a dealer in Denver CO probably 40 some years ago now sold me a new truck which I took home and drove for a week or so then they told me they couldn't get me financed and to return the truck even though I had paperwork just like the woman in your video. I did the honest thing and returned it at which point they told me they could sell me a lesser vehicle....that they could get that amount financed. I was young and dumb. I don't know whether they could finance me or not but I drove another new vehicle off the lot but a lesser one. Looking back I should have made them honor the original deal. I don't remember the difference in price between the 2 vehicles. Probably less than $1000 at that time. I've never trusted car dealers or lawyers. They fall into the same classification....SLEAZE!!!

[@AveGuy1]

This happened to me. I reported the dealership to the FBI and some other government agencies for fraud. Long story short, they approved the loan.

[@LovelyRedHead]

Here in California, once the loan paperwork is signed, the dealership must carry the paper at the agreed numbers.

[@garylp3]

Good. I'm glad to hear that.

[@austinsullivan1527]

This is what happens to me

[@olebloom1641]

Michigan is a title holding state. One of nine. Lien stays on the title and customer cannot negotiate title without lien being removed or satisfied.

[@mitchs.920]

In michigan you get a paper copy of the title, usually the dealer has to file the lien at the secretary of state to get a lien on said title. No clue why they would give her the title without the lien placed on it. Michigan is not a title holding state.

[@josephhodges9819]

Maryland they have 4 days to send a letter that loan is not final and if they do not send it then the deal is final. Dealers are also not allowed to sell the trade-in before the deal is final.

[@hxfx6771]

In New York you get your title but if there is a loan it lists the lender as the lien holder.

[@thetrailoutthere]

There's a section in the purchase agreement that states the dealerships have the right to cancel or change the contract if they can't obtain funding. An approval at the dealership still requires the loan to get funded. If it can't fund, the dealership can cancel or change lenders under the same or different terms. If the terms change, a new contract is required.

[@eldoradoboy]

thats what ive seen on most all of my 20+ cars ive bought... I just looked at the contracts for the 2 cars i have now and its in there.. even a clause about returnign the vehicle.. apparently the dealer in thos video didnt have such a clause (ill bet they do now)

[@jfbjr81]

I had something similar to me as a customer about 15 years ago. I had “pre-approval” from Capital One Auto. Signed all the papers supposedly the vehicle met the terms that Capital One required. Got a call about a week later from the dealership. The loan didn’t go through. I had blamed it on Capital One at the time. The dealership made me come in and sign new financing and terms or I would have had to give the car back.

[@ericgreen8133]

When I live in Michigan, I brought a car and they sent me a title.

[@lowkie11238]

I bought a car in Arkansas ( I live 14 hours away) with a loan from a bank my wife works at. My wife was also on the title so I left with car and loan paperwork for my wife to sign after I drove home because I flew in. Had title in hand and when registered the car in my state, they state sent me a title back in mail with lien on title. Paid car off got new title without lein. I was totally surprised they let me leave dealership without wife signing loan docs.but we had this prearranged before I came done.

[@drrick8839]

Hey Brandon, I want to thank you in advance for the free car. I was surprised to hear you were planning to give away a car on CQA and even more surprised when I won it! Please let me know where to send the cookies and the Christmas card. I’ll even throw in a bottle of wine! Peace my friend, DrRick

[@jonsaircond8520]

We called it driving on a bubble In my younger years had this happen once and it's not fair when you leave in your new car. Anybody would think when you sign and give money and drive off with the vehicle it's yours. If your credit is questionable I would expect this on any financed vehicle

[@joewhite917]

I had a friend at work who told me when they called the bank to find out when they would get their payment book, the bank was giving them the run around, until he told them they had the title in their hands, that didn't have a lien on it.

[@TheOkie13]

Up until recently in my state you did get the title after buying a car even if it had a lien against it. the state required that the customer holds the title it just says on the title there's a lien on it.

[@robshaw2990]

This happened to me on a new truck purchase. They wanted me to sign new papers. I responded that I would not sign the new paperwork and if they wanted the truck back I was fine with that and I would come and pick up what I traded in and they could have the truck back. They declined and tried to “shame” me into feeling bad. I said I didn’t write the deal you did. I assume they had already done something with my trade in

[@duancoviero9759]

I hope they are able to enforce this decision, that customer got screwed.

[@Spaethon]

I totally feel you Brandon. I found a vintage 1940s Dr Pepper cooler when I was a kid, an old lady put it out for trash. I kept it for about 20 years, decided to sell it on eBay and made $300. Long story short, I shipped the item before the buyer completed payment, even though I received an email saying payment was sent, eBay threw their hands up and wouldn't help, and they got a free cooler. I'm still fuming over that too. 🤬

[@edennis8578]

You aren't the only person to do that. I know of a woman (she has a well known blog) who got an offer from a guy who wanted a crystal apothecary jar. She shipped it before waiting for him to send payment because he said he needed it for his wedding in two weeks. You guessed it, he never paid.

[@semosurvivalist]

Never leave the dealership with a vehicle until your loan is through, you know the lender, and terms. There's multiple reasons for this such as interest rate and loan finalization.

[@TheRlSlayer1]

gotta say, have ur financing done before going to the dealership.. When i went for my car, dealer said oh we can get u loan at 16.5% on a 30k car when i had a 760 credit. this is when i already told them i wont be using there financing. then got pissed when i gave them a cashier check. cus alot of places get kickback from the loans. and the loan i had was 5.7%.

[@bonsaitreehouse5534]

Could depend on the state. Some states allow people to get the title with liens on it. The Title would list the liens.

[@jamesodell3064]

I believe here in Michigan the buyer gets the title but it lists the lien on the title.

[@clemnewton9007]

People will do things they should not do but it come back and bite them but some dealership do lie alot which is not good either as far as free car have people buy tickets and then you can draw ticket for the winner

[@daviddiehl-gy2sq]

Have a better one. Went to Blossom Chevrolet to trade in my Ram Charger on a new truck. They let me drive the truck home and keep it for a month. The financing did not go through. So I had to return the truck. Took it back,told them to just give me back my Ram and leave. They had sold the Ram without the title change. Still under my name. Then it got interesting.

[@fortyseven1832]

I bought a used car for cash. Two weeks later the dealership called me wanting the car back. Turns out they couldn't get financing for the person that traded in the car and the person wanted their car back..

[@brianm.4243]

How did that turn out?

[@cg5648]

And?

[@paullilly-b5o]

Update bro. Update us.

[@dave3657]

Only a couple of times I have financed through a dealer, and I paid them off way early. Normally I like to have financing lined up before I buy.

[@stuglenn1112]

In some states even though you have a loan on the car you still get the title it just has a lien on it. Some states the loan company gets the title until you pay it off. So it depends on the state. Steve Lehto who's a lawyer did a video on his channel of this exact scenario. You have a signed deal with the dealership to sell you the car at a given interest rate over a given term, what you do is make the payments to the dealership. No they won't like it but that's what the law allows in this case.

[@garylp3]

I read in some comments that she actually got over $800K total.

[@woodie70hudson87]

Any dealership that makes this kind of rookie mistake, shouldn't be in business!!!😕😕😕

[@fadikazma8171]

dealer contract have a box that states dealer have the right to cancel the contract ( in case financing does not go through which is common) the problem with this dealer is they tried to classify it as repossession and keep some money which is a huge issue, they should have canceled the contract and returned her down payment, in which case there would not be any legal issues. for all the people complaining about spot delivery, its actually a good thing because without it people will apply for financing and sometimes might have to wait more than a week before taking possession of the car, sometimes the customer is approved by the finance company and once the deal is completed and all the paperwork is sent the finance company does verification of income address and other things, and if things dont match they return the deal, in which case the dealer have to take the car back. and its very common with subprime lending.