Dealer refusing to pay off loan on trade in

[American]

If you search the internet on dealers not paying off loans on trade ins you will find it comes up as dealer scam, even consumer reports has written about this dealer scam.

 

I purchased my 2018 Yamaha Star Venture Transcontinental from Destination Powersports in Punta Gorda, Florida on April 25, 2018. The sales contract clearly documents how much they gave me for the Harley Davidson Ultra Limited Low and how much the payoff is for the trade in, the payoff was a 20 day payoff and is documented on the sales contract in the amount of $11,814.20.

 

Destination Powersports is responsible to pay Harley Davidson Financial Services $11,814.20.

 

As of May 22, 2018 Destination Powersports has failed to complete the payoff as agreed in the sales contract. I have been to their dealer twice now to inquire why they have not paid off the Harley Davidson I traded in. Today as I was there picking up the tag paperwork which they also screwed up and did not transfer my personal tag like they should have but they instead had a new generic tag issued instead. While there I again inquired why they have not paid off the Harley Davidson and what is it going to take to get them to pay it off. I told who I guess is a sales manager because no one will ID themselves to me nor will anyone direct me to someone with the authority to deal with this matter, but I told this person that if I have to make one more payment on the Harley I would have to hire an attorney to remedy this.

 

This sales manager I guess is what he is wanted to go back to the tag, I told him forget about the tag I will eat the cost of getting another personal tag even though I should not have had to.

 

So I again asked him what is it going to take and why has the Harley Davidson not been paid off yet? I am coming upon the second payment that I will have made on the Harley Davidson since I traded it in. The sales manager told me the conversation ended when I said the word attorney and refused to talk to me any further.

 

I am now beyond pissed with Destination Powersports and will be leaving some very pointed reviews on their failure to payoff the Harley Davidson as agreed in the sales contract.

 

Apparantly the way this dealer scam works on not paying off a trade in loan is the dealer is either 1. Out of money and fixing to go out of business 2. Letting the former owner pay the loan down through several payments and pocket the lower payoff difference while you had to continue to pay the loan to not fall into default and negatively impact your credit rating at which point the dealer has committed theft by pocketing the difference from the lower payoff as dealer profit so you would have to file a criminal complaint with the local police department. 3. They attempt to sell the trade in and do not pay off the trade in until it has sold to someone else again pocketing the lower payoff amount from the original payoff amount.

 

Anyone who buys the vehicle that has not been paid off has another problem of titling the vehicle they just bought because it will still have a lean showing on it until the original finance contract is paid in full.

 

I find it very sad that Destination Powersports has decided a good relationship with a new customer was not worth building and maintaining, I will never again do business with Destination Powersports nor will I recommend anyone do business with Destination Powersports.

 

I sadly purchased a 3 year service contract with Destination Powersports that I now do not believe they will honor as the contract is supposed to cover all maintenance items in the service schedule for 3 years unlimited mileage. Once that contract is up there will be no more business with them at all.

 

Fool me once shame on you, fool me twice shame on me.

 

I will update this thread when the Harley Davidson gets paid off if it gets paid off, but it now looks like it will be a lawsuit and I may be paying off the $11,814.20 out of my pocket through the monthly payments of the original loan. I have already made one payment to keep the account in good standing and the second payment is coming due on June 1, 2018 making me into the Harley for two payments after it was traded in. I made the first one simply because the payment was coming due and I should have been refunded any overpayment by Harley Davidson Financial Services but Destination Powersports has now made it clear they are not honoring the sales contract to payoff the Harley Davidson.

 

Destination Powersports will quickly eat up any additional profit they thought they were going to make off this trade in scam in attorneys fees so either way in the end they will be losers and their own dealer reputation suffers over their dealer scam of not paying off the trade in they agreed to.

Edited May 22, 2018 by American

[YamahaParExcellence]

If you search the internet on dealers not paying off loans on trade ins you will find it comes up as dealer scam, even consumer reports has written about this dealer scam.

 

I purchased my 2018 Yamaha Star Venture Transcontinental from Destination Powersports in Punta Gorda, Florida on April 25, 2018. The sales contract clearly documents how much they gave me for the Harley Davidson Ultra Limited Low and how much the payoff is for the trade in, the payoff was a 20 payoff and is documented on the sales contract in the amount of $11,814.20.

 

Destination Powersports is responsible to pay Harley Davidson Financial Services $11,814.20.

 

As of May 22, 2018 Destination Powersports has failed to complete the payoff as agreed in the sales contract. I have been to their dealer twice now to inquire why they have not paid off the Harley Davidson I traded in. Today as I was there picking up the tag paperwork which they also screwed up and did not transfer my personal tag like they should have but they instead had a new generic tag issued instead. While there I again inquired why they have not paid off the Harley Davidson and what is it going to take to get them to pay it off. I told who I guess is a sales manager because no one will ID themselves to me nor will anyone direct me to someone with the authority to deal with this matter, but I told this person that if I have to make one more payment on the Harley I would have to hire an attorney to remedy this.

 

This sales manager I guess is what he is wanted to go back to the tag, I told him forget about the tag I will eat the cost of getting another personal tag even though I should not have had to.

 

So I again asked him what is it going to take and why has the Harley Davidson not been paid off yet? I am coming upon the second payment that I will have made on the Harley Davidson since I traded it in. The sales manager told me the conversation ended when I said the word attorney and refused to talk to me any further.

 

I am now beyond pissed with Destination Powersports and will be leaving some very pointed reviews on their failure to payoff the Harley Davidson as agreed in the sales contract.

 

Apparantly the way this dealer scam works on not paying off a trade in loan is the dealer is either 1. Out of money and fixing to go out of business 2. Letting the former owner pay the loan down through several payments and pocket the lower payoff difference while you had to continue to pay the loan to not fall into default and negatively impact your credit rating at which point the dealer has committed theft by pocketing the difference from the lower payoff as dealer profit so you would have to file a criminal complaint with the local police department. 3. They attempt to sell the trade in and do not pay off the trade in until it has sold to someone else again pocketing the lower payoff amount from the original payoff amount.

 

Anyone who buys the vehicle that has not been paid off has another problem of titling the vehicle they just bought because it will still have a lean showing on it until the original finance contract is paid in full.

 

I find it very sad that Destination Powersports has decided a good relationship with a new customer was not worth building and maintaining, I will never again do business with Destination Powersports nor will I recommend anyone do business with Destination Powersports.

 

I sadly purchased a 3 year service contract with Destination Powersports that I now do not believe they will honor as the contract is supposed to cover all maintenance items in the service schedule for 3 years unlimited mileage. Once that contract is up there will be no more business with them at all.

 

Fool me once shame on you, fool me twice shame on me.

 

I will update this thread when the Harley Davidson gets paid off if it gets paid off, but it now looks like it will be a lawsuit and I may be paying off the $11,814.20 out of my pocket through the monthly payments of the original loan. I have already made one payment to keep the account in good standing and the second payment is coming due on June 1, 2018 making me into the Harley for two payments after it was traded in. I made the first one simply because the payment was coming due and I should have been refunded any overpayment by Harley Davidson Financial Services but Destination Powersports has now made it clear they are not honoring the sales contract to payoff the Harley Davidson.

 

Destination Powersports will quickly eat up any additional profit they thought they were going to make off this trade in scam in attorneys fees so either way in the end they will be losers and their own dealer reputation suffers over their dealer scam of not paying off the trade in they agreed to.

 

WOW...American, THIS SUCKS! A good warning to all! So sorry to read of your woes. I hope it all works out, and ASAP! Good energy sent your way, today!

 

Is Destination Powersports (by Florida transaction law) totally and finally responsible to pay out the net load difference to Harley, or are you as the indebted to Harley Financial Services? In otherwords, is the debt grandfather'ed to the one taking out the loan,...or is there a downstream (PowerSports) that shifts the burden, if by contract it is taken on as part of your legal sales contract? In Ontario, it is always the end-game responsibility of the original debtor, to satisfy the financial obligation, but can 'assign' that responsibility to another...(like a dealer) but...that only allows let's say Harley Davidson Financial, to legally interact with the dealer, for privacy concern laws. Until the debt is paid in full, either by the original signer...or his proxy (the dealer) it is still the total and full responsibility on the origination debtor. In Ontario, anyways...

 

The only thing a person in Ontario, would be able to do...is take the Yamaha dealer to court for 'breach of' the specifications within the Sales Contract..but NOT for the debt value amount itself. No matter...you might have a fight on your hands...with attorney's fees, and continuing to have to pay down the Harley. Not good, no matter how you cut the pie....

 

Joe

Edited May 22, 2018 by YamahaParExcellence

[BratmanXj]

I'd assume you have all the necessary paperwork showing the trade-in is now owned by the offending dealer. I'd reach out the the loan company on the HD, supply the necessary documents and hopefully get a temporary hold on the load while you initiate legal preceding. You might need to file a police report to have documentation that the offending dealer is participating in this "scam" but a minor issue at this point to protect your good credit.

[cowpuc]

?? - in your second paragraph - what is a "20 payoff"? Is thiseferencing installment Months?

 

Having learned via experience thru the years,,, I do everything in my power to hold making the "getting an attorney involved" statement with companies as using the Attorney statement just never has worked out in my favor.. Instead,, I choose to let my attorney notify them once he has actually been invited to the party... In my experience,, even mentioning an attorney is a guarenteed way to, as you experienced have the doors of negotiations slammed shut and also build a permanent wall between yourself and your dealer that may not necessarily need to be built..

Personally,,, I think I would have called Harley Financial Services as soon as it appeared that the Yam shop was possibly scammin because the bike in question actually belongs to them . That could result in a simple communication/notification from HFS to the Yam shop that may have been all it would have taken to shake the tree and make the fruit fall..

If the Venture is also owned by a finance company I would also get them in the loop as they too are involved too and would actually be someone with authority and probably so much so that they would be the ones calling the dealership after a chat with HFS to shake the tree.

I would simply look at my "titles" and find out who actually owns the bikes and go from there... Most dealerships are just a middleman, no more no less IMHO (not all though,, I actually had a trade offer in my dealership on a bike that was owned by a local Dealership who was carrying the loan in house - the seller was attempting to scam us by trading in a bike that did not belong to him = a simple phone call to the owning dealership got them their machine back that hadnt been paid on for over 6 months)..

Thinking about this,, I really wonder if what I mention above still might not be your best hope for a quick solution.. I know one thing for absolute sure,, the "wheels of justice" work very very slooooowly (at least in my experience) and tend to be fairly expensive so be prepared for a POSSIBLE longgg summer of making double payments on stuff to keep things solvent if you do indeed choose to hit the courts up,,, also IMHO of course..

 

SORRY THIS ALL HAPPENED TO YOU BROTHER!!!

Puc

Edited May 22, 2018 by cowpuc

[BlueSky]

You may want to contact a Yamaha Rep and let them know how unethical this dealer is. They may want to terminate their relationship with them.

[YamahaParExcellence]

?? - in your second paragraph - what is a "20 payoff"? Is thiseferencing installment Months?

 

Having learned via experience thru the years,,, I do everything in my power to hold making the "getting an attorney involved" statement with companies as using the Attorney statement just never has worked out in my favor.. Instead,, I choose to let my attorney notify them once he has actually been invited to the party... In my experience,, even mentioning an attorney is a guarenteed way to, as you experienced have the doors of negotiations slammed shut and also build a permanent wall between yourself and your dealer that may not necessarily need to be built..

Personally,,, I think I would have called Harley Financial Services as soon as it appeared that the Yam shop was possibly scammin because the bike in question actually belongs to them . That could result in a simple communication/notification from HFS to the Yam shop that may have been all it would have taken to shake the tree and make the fruit fall..

If the Venture is also owned by a finance company I would also get them in the loop as they too are involved too and would actually be someone with authority and probably so much so that they would be the ones calling the dealership after a chat with HFS to shake the tree.

I would simply look at my "titles" and find out who actually owns the bikes and go from there... Most dealerships are just a middleman, no more no less IMHO (not all though,, I actually had a trade offer in my dealership on a bike that was owned by a local Dealership who was carrying the loan in house - the seller was attempting to scam us by trading in a bike that did not belong to him = a simple phone call to the owning dealership got them their machine back that hadnt been paid on for over 6 months)..

Thinking about this,, I really wonder if what I mention above still might not be your best hope for a quick solution.. I know one thing for absolute sure,, the "wheels of justice" work very very slooooowly (at least in my experience) and tend to be fairly expensive so be prepared for a POSSIBLE longgg summer of making double payments on stuff to keep things solvent if you do indeed choose to hit the courts up,,, also IMHO of course..

 

SORRY THIS ALL HAPPENED TO YOU BROTHER!!!

Puc

 

Puc...does the bike, even in a trade in scenario, truly belong now to the assigned dealer, or rather...in Harley Davidson's and Florida law...still be fully the responsibility of the originator of the debt obligation...as there is STILL a lien on that title...and therefore, technically, the dealer can NOT hold transfer of title...and THAT is the quagmire...that might be also part of any scam. The dealer, by Florida transaction law...is NOT the legal title holder...Harley Financial actually is...UNTIL the debt is paid off. That is what Lien Law in Ontario...translates out to. The Lien Holder, has ultimate title rights. That's why they can repossess at any time, if in financial default, by the originator, no matter WHOM, or HOW MANY times, there is title, or transfer-of-sale, that has been enacted on any vehicle from debt origination, to actual payout and retirement of such contractual debt..... or in this case, by American

 

American, I have a suggestion...that you with an attorney, right away...at your side, TURN IN, your Yamaha STVC back to the YAMAHA dealer...in contractual default...and immediately take possession back of the Harley Low Rider...for if that bike 'goes missing', you will be totally screwed and will be sued by Harley Financial if you don't make full restitution on the outstanding debt. Your business is with Harley Financial, as concerns the lien on that Harley. You need to take back possession of it, right away. You then can sell it, or liquidate it, at your pleasure. I don't know if you paid out the balance owing on the SVTC in cash...or you took that also out as a loan...so this could be two tiered trouble. If it were me...I'd be there protecting my access to that Harley, until you can retire that debt WITH Harley, and then go after the Yamaha dealer for financial compensation and injury. You need to protect and gain control back of that trade-in. You are still on the hook for it!

 

A suggestion...

Edited May 22, 2018 by YamahaParExcellence

[SilvrT]

@American ... did you finance the deal on the new bike? If so, then it would be the finance co that should pay out the existing loan on the Harley.

 

Hard to fathom why a so-called reputable dealer would pull such a scam!!

[American]

The loan belongs to me even though the bike has been traded until the dealer payoffs the loan amount owed.

 

cowpuc, that was the 20 day payoff amount that would be owed 20 days out. Standard for a dealer to get the 20 day payoff amount.

 

So if you trade in a bike or car that has a balance on it the dealer makes their offer and agrees to payoff the balance of the loan, but you are still the one responsible for the loan until it is paid off.

 

You can choose to ignore paying the monthly payments but once 30 days go by you will be shown as 30 days late on your credit report, not good. I am now two days away from the 30 day mark but I planned ahead and made the first payment so it would not be an issue and any over payment would be refunded to me by Harley Davidson as long as the dealer paid the original 20 day payoff amount like is in the sales contract.

 

Now I am coming up on the second payment since trading the Harley in order to keep the Harley account in good standing. We have gone far enough it is clear the dealer has no intention of paying off the Harley loan in a timely manner if at all as they may be out of money and fixing to go out of business if you read about this dealer scam on the internet.

 

If you don't pay the payment and the dealer does not pay off the loan as agreed then the finance company can come and repo the bike, but again you credit is ruined if you let that happen, now the good part if this will not bankrupt my wife and I as we can afford to carry this until it is resolved but the dealer is still running a scam by not paying off the trade in loan.

[American]

American ... did you finance the deal on the new bike? If so, then it would be the finance co that should pay out the existing loan on the Harley.

 

Hard to fathom why a so-called reputable dealer would pull such a scam!!

 

Do a google search on "dealer not paying off trade in loan" and you will find a lot of very interesting reading and this is a documented dealer scam even consumer reports has done an article on.

 

The finance company financed the new bike they have nothing to do with the old bike and have no requirement to pay off the old loan, that is all on the dealer.

[American]

The new bike is financed by another bank, so it is to late to cancel that sale as it has gone through and the bank has carried out their obligations. I have no issue with the new finance agreement with the bank.

 

I do however want to warn anyone of the dealer practice of Destination Powersports that you will have been forewarned about them.

 

Like I said having to continue to pay the Harley loan will not bankrupt us it is an unnecessary expense and we will seek remedy thought the legal system. I have the sales contract that lists how much they gave me for the Harley and how much was owed on the loan at the 20 day payoff amount. The dealer should have no leg to stand on in a court of law so it is stupid for them to even play this game with me.

 

If in the end I end up paying off the Harley because the dealer goes out of business then it is an expensive lesson for me, but whom ever takes possession of that Harley will not be able to obtain a title for it due to the HDFS lean on the bike.

 

All I can do is warn people about Destination Powersports dealer practices and if you decide to take a chance and do business with them and get burned then you can't say you were not warned if you read what I am going through with them.

[American]

One thing, the tag, they completely screwed that up as well I can't even begin to try and resolve that for at least 30 days because the dealer has a electronic transaction on the tag, that is from where they traded to transfer the tag but were unable to do so for some reason, so they just went down and got a generic tag and called it quits.

 

The tag office told me that and said go back to the dealer but the dealer is no longer talking to me so that is not an option.

 

I will just wait the 30 days check for when their electronic pending has released and then I will just do a new tag.

[American]

?? - in your second paragraph - what is a "20 payoff"? Is thiseferencing installment Months?

 

Having learned via experience thru the years,,, I do everything in my power to hold making the "getting an attorney involved" statement with companies as using the Attorney statement just never has worked out in my favor.. Instead,, I choose to let my attorney notify them once he has actually been invited to the party... In my experience,, even mentioning an attorney is a guarenteed way to, as you experienced have the doors of negotiations slammed shut and also build a permanent wall between yourself and your dealer that may not necessarily need to be built..

Personally,,, I think I would have called Harley Financial Services as soon as it appeared that the Yam shop was possibly scammin because the bike in question actually belongs to them . That could result in a simple communication/notification from HFS to the Yam shop that may have been all it would have taken to shake the tree and make the fruit fall..

If the Venture is also owned by a finance company I would also get them in the loop as they too are involved too and would actually be someone with authority and probably so much so that they would be the ones calling the dealership after a chat with HFS to shake the tree.

I would simply look at my "titles" and find out who actually owns the bikes and go from there... Most dealerships are just a middleman, no more no less IMHO (not all though,, I actually had a trade offer in my dealership on a bike that was owned by a local Dealership who was carrying the loan in house - the seller was attempting to scam us by trading in a bike that did not belong to him = a simple phone call to the owning dealership got them their machine back that hadnt been paid on for over 6 months)..

Thinking about this,, I really wonder if what I mention above still might not be your best hope for a quick solution.. I know one thing for absolute sure,, the "wheels of justice" work very very slooooowly (at least in my experience) and tend to be fairly expensive so be prepared for a POSSIBLE longgg summer of making double payments on stuff to keep things solvent if you do indeed choose to hit the courts up,,, also IMHO of course..

 

SORRY THIS ALL HAPPENED TO YOU BROTHER!!!

Puc

 

Harley Davidson Financial Services has already flagged the account to look for a payoff from the dealer but I am still the one responsible if the dealer does not hold up their end of the sales contract. So Harley is aware that Destination Powersports is in possession of the bike.

[YamahaParExcellence]

Do a google search on "dealer not paying off trade in loan" and you will find a lot of very interesting reading and this is a documented dealer scam even consumer reports has done an article on.

 

The finance company financed the new bike they have nothing to do with the old bike and have no requirement to pay off the old loan, that is all on the dealer.

 

Although I an not in this situation, I intend to read up on this...power is knowledge, knowledge, is forewarned.

 

Again, sorry to read that you are even facing this.

 

Wow... ------>https://bc.ctvnews.ca/car-dealership-delays-paying-off-trade-in-loans-1.3693180

 

http://www.judsonecrump.com/dealer-didnt-pay-off-your-trade-in-what-to-do-about-it-alabama-consumer-protection-lawyer-judson-e-crump/

Edited May 22, 2018 by YamahaParExcellence

[BlueSky]

I think that one of the documents you sign when you trade is a "Power of Attorney" document where you agree to allow the dealer to represent your interests in the transaction. It works fine until you use a dealer that is in financial trouble or is very unethical. But, the bottom line is that you agree to let the scumbag sign for you in the sale of the tradein.

[SilvrT]

Do a google search on "dealer not paying off trade in loan" and you will find a lot of very interesting reading and this is a documented dealer scam even consumer reports has done an article on.

 

The finance company financed the new bike they have nothing to do with the old bike and have no requirement to pay off the old loan, that is all on the dealer.

 

Strange way of doing it ... at least for around here ... they generally finance the entire deal including the payout of the existing loan.

 

eg...

 

New vehicle: 30,000

Trade: 10,000

Sub Total: 20,000

Lien Payout: 8,000

 

Bal to Finance: 28,000

 

That's how it works or should work when you trade something in.

 

So you're telling me (or should I say "us") that they financed only the difference between the price of the new bike and the trade value of your Harley? And you now have 2 loans ... 1 for the Harley and 1 for the new bike ?

[SilvrT]

Wow... ------>https://bc.ctvnews.ca/car-dealership-delays-paying-off-trade-in-loans-1.3693180

 

 

hmmmmm almost makes me want to retract my words "Strange way of doing it ... at least for around here ... they generally finance the entire deal including the payout of the existing loan.

"

 

But certainly this "practise" must be an exception to the norm ???

[American]

Strange way of doing it ... at least for around here ... they generally finance the entire deal including the payout of the existing loan.

 

eg...

 

New vehicle: 30,000

Trade: 10,000

Sub Total: 20,000

Lien Payout: 8,000

 

Bal to Finance: 28,000

 

That's how it works or should work when you trade something in.

 

So you're telling me (or should I say "us") that they financed only the difference between the price of the new bike and the trade value of your Harley? And you now have 2 loans ... 1 for the Harley and 1 for the new bike ?

 

All you are doing is rolling over the balance owed into the new loan, the new loan still has nothing to do with the old bike, that is still all on the dealer, it also has nothing to do with HDFS as the new loan is paid to the dealer and it is the dealers responsibility to pay off the old loan per the sales contract. How ever if the dealer fails to pay off the old loan it is still your responsibility in the end.

 

What the dealer gets out of it is they get to sell the used bike or car and in most cases dealers make more money on used car and bike sales than they make on their new car or bike sales.

[American]

I think that one of the documents you sign when you trade is a "Power of Attorney" document where you agree to allow the dealer to represent your interests in the transaction. It works fine until you use a dealer that is in financial trouble or is very unethical. But, the bottom line is that you agree to let the scumbag sign for you in the sale of the tradein.

 

Correct, sadly unless you can find reviews of said unethical dealer you have to trust that they are going to honest in their transaction with you. In all my years of buying and trading vehicles this is the first dealer who has given me trouble. It can happen to anyone and the only defense against it would be to only trade in paid off vehicles, sometimes we have and sometimes we have owned money.

 

In the case of the Harley I owned money but was right side up in the loan, but sadly Destination Powersports is choosing to be either an unethical dealer or they are in financial trouble and are fixing to go out of business in which case the 3 year maintenance contract I purchased will also be a waste of money.

[YamahaParExcellence]

hmmmmm almost makes me want to retract my words "Strange way of doing it ... at least for around here ... they generally finance the entire deal including the payout of the existing loan.

"

 

But certainly this "practise" must be an exception to the norm ???

 

If this isn't a great argument, to never trade in a vehicle, that you don't have 100 percent non-lien ownership of...then there isn't one.

 

Bottom line, I guess to protect yourself...always wait until you pay off the vehicle you own, before wanting another....and in wanting to use the present vehicle as a trade-in....

[SilvrT]

All you are doing is rolling over the balance owed into the new loan, the new loan still has nothing to do with the old bike, that is still all on the dealer, it also has nothing to do with HDFS as the new loan is paid to the dealer and it is the dealers responsibility to pay off the old loan per the sales contract. How ever if the dealer fails to pay off the old loan it is still your responsibility in the end.

 

 

Yes, I understand it's rolling over the balance owed into the new loan; however, is it not the finance company's responnsibility to disburse the funds accordingly because it is them who are buying the contract and in doing so, they are taking over the contract on the trade? They pay off that contract to the original lien holder and put a lien against the new item for the entire contract amount. That has always been my understanding. Doing it that way ensures that the dealer now has a lien free vehicle to sell.

 

Rolling over the balance into the new loan is a common practise since it quite often results in the buyer walking away with a new vehicle with a better repayment plan and a single loan. That being said I guess things change as it's been a long time since I've traded something in that I still owed money on.

[XV1100SE]

Have you called Yamaha? I would push it to them and get them to enquire at the dealer what is going on

[American]

Yes, I understand it's rolling over the balance owed into the new loan; however, is it not the finance company's responnsibility to disburse the funds accordingly because it is them who are buying the contract and in doing so, they are taking over the contract on the trade? They pay off that contract to the original lien holder and put a lien against the new item for the entire contract amount. That has always been my understanding. Doing it that way ensures that the dealer now has a lien free vehicle to sell.

 

Rolling over the balance into the new loan is a common practise since it quite often results in the buyer walking away with a new vehicle with a better repayment plan and a single loan. That being said I guess things change as it's been a long time since I've traded something in that I still owed money on.

 

The finance company is not buying your old loan, that is a deal between you and the dealer, example:

 

Vehicle is $30,000 dollars dealer give you $15,000 dollars for your vehicle but you still owe $12,000 dollars on it, so the actual balance of the new vehicle while reduced by $15,000 dollars on paper $12,000 dollars was rolled back into the price of the vehicle to cover the payoff of the trade in vehicle, so in effect only $3,000 dollars come off the price of the vehicle you are buying dropping it to $27,000 dollars, we won't get into adding tax, tag and title fees and such which would increase the cost.

 

The new finance loan company has nothing to do with the payoff of the trade in and the dealer has to sell the trade in to recover their money which is not a bad deal for them as they are the ones who make the deal on the trade in and dealers make twice the profit from used vehicle sales then they do from new vehicle sales.

 

If the dealer fails to pay off the loan on the trade in vehicle it falls on the owner that traded in the vehicle because that is who the finance company that issued the loan on the trade in vehicle has signed documents with. Now that owner is stuck having to pay not only their new vehicle payment but if they want to protect their credit they will now have to pay the old loan on the trade in vehicle until it is either paid off by the dealer or you pay it off but you have lost control of that vehicle either way.

[American]

Have you called Yamaha? I would push it to them and get them to enquire at the dealer what is going on

 

Yamaha is unlikely to do anything about it but I did include what has happened in the Yamaha survey I just got in my email.

 

Manufactures don't control the dealers, you can also do internet searches where people have problems with dealers and try to contact the manufacture to no avail, it always goes back to dealers are independent of the manufacture and the manufacture has no control over the dealer. This had to do with dealers in this case it was Honda motorcycle dealers refusing to do warranty work of all things.

 

It sounds nice but the manufacture really has no control over how the dealer acts.

[American]

hmmmmm almost makes me want to retract my words "Strange way of doing it ... at least for around here ... they generally finance the entire deal including the payout of the existing loan.

"

 

But certainly this "practise" must be an exception to the norm ???

 

You are misunderstanding what is really going on, just because you rolled over your existing balance on your old loan does not mean the new loan paid off the old balance,

 

If the vehicle you bought cost $30,000 dollars and you rolled $12,000 dollars of the old loan into the new loan the dealer still has to pay for the cost of the new vehicle.

 

If it was done the way you are thinking then the $12,000 dollars would have been added on top of the new loan. It gets complicated trying to explain it. In the end the dealer has to sell the trade in to get the rest of the money back for the new car they sold you.

[XV1100SE]

Yamaha is unlikely to do anything about it but I did include what has happened in the Yamaha survey I just got in my email.

 

Manufactures don't control the dealers, you can also do internet searches where people have problems with dealers and try to contact the manufacture to no avail, it always goes back to dealers are independent of the manufacture and the manufacture has no control over the dealer. This had to do with dealers in this case it was Honda motorcycle dealers refusing to do warranty work of all things.

 

It sounds nice but the manufacture really has no control over how the dealer acts.

 

 

I would still call Yamaha. They CAN put pressure on the dealer because they are a YAMAHA dealer and how the dealer treats customers is a reflection on them as well. Get the Yamaha Rep involved to follow-up with the dealer.