Trade Payoff Added to Loan???

by Theodore
(Illinois)

Question: I bought a car for $15,601.00 and the dealer bought my old car for $5,800.00. They paid off my old loan for $9,800.00, but then added the $9,800.00 to my new loan. Should my full trade payoff be added to the loan?

If they were buying my car and paid my $9,800.00 loan off, then wouldn't $5,800.00 (the amount they claimed to be buying it for) be their share and the $4,001.00 that was left be my share? So it should have only been $4001.00 added to the new loan.

Am I wrong? Should I go back to school to learn addition an subtraction?




Answer: You are definitely right! They should not have added the extra $5,800 on top of your loan. Your contract should show a $19,601 amount financed, before adding for TT&L, warranties, etc. This is also assuming a no money down loan.

I'd get on the phone with the sales manager ASAP and find out what is going on here. If you need any further help with this, please don't hesitate to get back in touch with me. Justin