Dealer won't pay off car I traded in?

Your local Department of Banking & Finance should be able to assist you in this matter. It is a state-level agency in charge of regulating all financial institutions. If they can't help you, they'll probably refer you to someone who can, but I would imagine this falls under their "Fraud" division.

You can also contact the service desk at your local Police Department. If all the paperwork is in order, then Kia stole your car. Again, they might not help you, but they'll point you in the right direction.

Your DMV would be another valuable asset in helping you to close this matter.

I would also ask the bank who owns the loan on the trade-in to help. It's in their interest to at least advise you.

Best of luck.

They have to pay off your car, if they don't, they won't get a clear title and can't sell it. Sometimes dealers can be very slow in doing this. If all else fails, make the payment due to save your credit, when it's paid off the bank will refund you the overage.

Check your contract for the new kia to make sure that they have the trade payoff in there, and make sure that number is what they end up paying.

This Site Might Help You.

RE:

Dealer won't pay off car I traded in?

I bought a new car from Central Kia in Plano, TX six weeks ago. I traded in a 3 yr old vehicle. Central Kia has not yet paid off the note on the car I traded in. First they told my bank they would overnight the payment...they did not. Next they told my bank they only paid once a month and that...

Kia Motors Finance Payoff

Central Kia Of Plano

Go down there in person.

You can also contact the dealer regulatory agency.

It may be the dealer is having financial troubles and playing the "float".

In which case, you need to be the squeaky wheel. And if you don't care enough to go down there, you are not the squeaky wheel.

Sorry this happened.

I called and talked to central Kia Finance...

They said call accounting M-F between 9-5 ask for Business Manager...

Since I did not have your name and number could not help.

You might draft a well written letter, and copy the correct consumer agency (cies) in your letter....

File Complaint here:

http://www.oag.state.tx.us/iia/view.php?type=q&id=...

To file a consumer complaint please visit the Consumer Protection section of our website.

http://www.oag.state.tx.us/consumer/

BUT understand...the complaint is not a personal one and will do NOTHING to help you. it just goes against the company. KEEP your records, though because the attorney general may go after them with enough complaints.

In addition you may wish to contact the Motor Vehicle Enforcement Division within the Texas Department of Transportation. The Motor Vehicle Enforcement Division is responsible for responding to complaints regarding sales practices and other violations of the Texas Motor Vehicle Commission Code and the Transportation Code, Section 503.

The Dealer Enforcement office licenses and regulates car dealerships and receives consumer complaints about the business practices of dealers, failure to pass title, the "lemon" law, and frauds such as odometer rollbacks.

You can reach that office at:

Texas Department of Transportation

Motor Vehicle Division

Dealer Enforcement

P.O. Box 2293

Austin, TX 78768

800-687-7846

www.dot.state.tx.us

In addition, the Texas Motor Vehicle Commission Code, included in Section 4413(36) of Vernon's Civil Statutes, and the Texas Transportation Code, Chapter 503, address the requirements for the sale of motor vehicles in the State of Texas.

You can access these codes at Texas Legislature Online

****

Auto Dealer Fraud - Enforcing Your Rights

If you believe that you may be a victim of auto dealer fraud, there are a number of steps you can take to enforce your legal rights. Following is a discussion of three options: contacting the dealer, filing a complaint with a state agency, and getting an attorney's help.

Contacting the Dealer. In many states, if you believe that auto dealer fraud was committed, you are required to contact the dealer and give them an opportunity to correct the problem before you take any legal action (such as filing a lawsuit). This contact can be initiated by you personally, or it can be made by your attorney, but it should be in writing and should clearly illustrate both the problem (i.e. the dealer's failure to disclose certain financing charges), and what steps you would like the dealer to take to resolve the problem (i.e. a partial refund of the vehicle purchase price).

Filing a State Agency Complaint. If you believe that you may have been a victim of auto dealer fraud, you may want to file a complaint with a state agency that protects consumers' rights in connection with vehicle purchases. In some states, that agency may be a consumer protection division of the state attorney general's office, or may be an agency specifically designated to handle complaints regarding auto dealers. For example, consumers in Texas would contact the Texas Motor Vehicle Division's Enforcement Section.

Getting an Attorney's Help. If you recently purchased a vehicle and you suspect that the dealer may have committed fraud during the sales process, you may want to speak with an experienced Auto Dealer Fraud Attorney. An Auto Dealer Fraud attorney will evaluate all aspects of your case and explain all options available to you -- including what you can expect if you decide to file a lawsuit against an auto dealer -- and will work with you to ensure the best possible outcome for your case. Remember that in some states, you are required to contact the dealer and give them an opportunity to correct the problem before you take any legal action.

Check your paperwork, did say they would pay off the note when they took control of the car. Does it have a titmetable for payoff.

I wouldn't be calling them, get off your butt and go down to the dealership with your paperwork and talk to them face to face. Tell them this is there last warning if they do not pay it off like your contact states you are taking them to small claims court. To file a claim in small claims court is only $35, and if you win they will have to pay your court cost. If you have the paperwork to backup your claim then you will easily win.

Check your paperwork, read all the fine print. Make sure your paperwork states your claim. Keep a record of everytime you call them and email them and go in person, keep all dates.

Texas DMV Complaints against dealers:

http://www.txdmv.gov/vehicles/dealers/complaints.h...

Complaints against Dealers

We investigate complaints against vehicle dealers licensed to sell vehicles in Texas. You can file a complaint whether you are a consumer or a vehicle dealer. For additional information or assistance with enforcement actions, call us at (800) 687-7846

If you have a complaint about a dealer's sales practices, follow the steps below:

1. Complete a consumer complaint form and answer all questions.

2. Attach a copy of the sales contract and other documents you may have received from the dealer. I hope you got it in writing...

3. Sign, date and mail form. Allow 3 to 5 weeks for processing.

http://www.txdot.gov/txdoteforms/GetForm?formName=...

FYI-

This dealer is allegedly a complete and utter SLEEZE.

http://www.consumeraffairs.com/automotive/tx_centr...

They are allegedly untrustworthy.

You are dealing with alleged SCUM.

The attorney general (Under DrTravelFoxes) will only apply pressure as a company.

Suggest an attorney and small claims court. I hope you got it in writing...

Look up Texas law..someone else said it is a felony for them to fail to pay within 30 days.

Try to contact Hal...

http://www.ucan.org/comment/reply/336#comment-form

Scam #3: "Forget To Pay Off Your Trade In" Scam

How the scam works: We saw an increase in complaints of this scam. You trade in your old car which you still owe money on, and the dealer is supposed to obtain a payoff figure and payoff the loan for you and add that payoff amount to your new car purchase. But something horrible happens. Two months later your are shocked to hear the new car dealer did not pay off your old car loan as promised. With this scam dealers effectively pay you less for your trade than they promised or steal it altogether. When the bank calls, YOU are responsible for the loan, not the dealer. The car loan is still in your name, until the dealer pays it off. As far as the bank is concerned, they have a loan with YOU, not a dealer and it's in your name until paid off. Now your credit gets dinged with late payment alerts from your bank. Sue the dealer, the judge will ask to see your contract with the dealer obligating them to pay off your old car loan. Of course there is none.

How to avoid the scam: We always recommend against buying a new car when you still owe money on your current car. Pay it off yourself first, get your title from the bank, THEN trade it in or sell it privately, paying off your loan with sales proceeds. When buying new cars, if you trade in a used car which you still owe money on, make the dealer put in writing that he will pay off your car loan in 10 days, or no deal. Then he is liable in court. You don't want to end up in court without proof that the dealer was supposed to payoff your trade-in. If the dealer refuses to put these promises in writing, it means they will pull this scam on you, and you need to leave immediately, taking your business to a more reputable dealer. It's the same with houses and cars, if you call for a payoff figure, you typically have 10 days to pay off that loan or interest will accrue. Most dealers are good, but a dealer who pulls this scam should know better.

If you can't afford to buy your car to begin with, you shouldn't be getting into another one. Basic common sense, which so many in this country lack.