I bought a new car from a VW dealer in Colorado Springs, CO and traded in my old one. A MONTH later I found out my 800 credit, excellent income, no debts other than a mortgage did not qualify for the loan. So they will do a different (more expensive) loan or I can return the car and pay $50 a day + 50 cents a mile. However, Google tells me this is a "yo-yo" deal and it is totally illegal in CO. I think we were targeted because we are from NM. I love the car but I am mad and I am going to take it back even if I do love it and have to pay for the 10 days. The car was $26K, my trade worth $11K, I put down $3K (on a card so I could get miles) and paid $1K for the extended warranty.What I want to know is: 1. Whether (and how) I can go about trying to recover my expenses for traveling to CO to pick up the car (250 miles each way), plus the 250 miles up to take it back. I also paid $350 to have the windows tinted once I brought it home. This was done 7 days after I "bought" the car.2. If I have to go to small claims to try to recover my expenses, can I include legal advice as part of them? Both the fees of this site and, if needed, those incurred by an attorney if I need one to write a letter to get the point across.3. What sort of penalty will the dealer get for (probably by now) selling or wholesaling my old car -which seems to be specifically prohibited. 4. Will I receive a refund for the extended warranty? If not can I add that to the list of things to potentially pursue in small claims?5. Is it better to try to work things out on the phone or just have a lawyer send a letter? I dread wasting a vacation day to drive up there with my family -- two small children -- and waiting around in the dealership all day. The Colorado Consumer Protection Act §6-1-708 prohibits a dealership from:Guaranteeing financing approval when the approval is not final.Selling your trade before financing is final.Keeping any portion of your down-payment as rent on a vehicle if they can't get you approved. This applies even if you signed a document agreeing to a per day/mileage charge.AlsoREGULATION 12-6-118(3)(v). A dealer shall give notice of rejection of financing to the prospective buyer within ten (10) calendar days from the date of the purchase order or agreement on a finance or consignment sale (effective Dec.1, 2004).
State/Country relating to question: Colorado
Nothing. I just want to be strategic and not waste time.
Thank you for the post, I am happy to assist you by answering your questions. Does your sales agreement state that it is subject to third party approval?
I believe so. However, there is also a goverment CO Dept of Revenue form that says the "Dealer has agreed to arrange financing for you and you agree to buy the Motor Vehicle if financing can be arranged at an interest rate that does not exceed 1.9% APR" .. etc etc
In the "rejection" letter it says "You should understand that as a dealer, we generally sell or lease vehicles on credit only if a third party like a bank or finance company will agree to buy the contract from us on terms that are financially acceptable to us. Regrettably we would not do that in this instance." The 1.9% was nationally advertised by VW.
Thank you Cas, from your description the vehicle sale was conditioned upon the seller's ability to obtain financing. therefore, to answer your questions:1. You can demand that the seller absorb the costs for transporting the vehicle by submitting written notice of where the vehicle is located generally, and offer to make the vehicle available for pick up at a mutually agreeable time and location in your town of residence. 2. n/a (see answer to question 1)3. There could be a penalty imposed for failing to notify you of the denial within the time prescribed the Act, an in any event the dealer is obligated to pay you the market value of your vehicle at the time of trade-in. The market value would be determined by the sum you were willing to accept per the trade-in agreement.4. You should receive a refund of th extended warranty, if purchased through the dealer. If you purchased it on your own, you would have a hard time recovering from the dealer what you paid because the contract was subject to the dealer's ability to obtaining financing (referencing the "if" in "if financing can be arranged at an interest rate....")5. It would be best to try to resolve it amicably via phone, and only if unable to do so then retain counsel ( as you would not want to incur the legal fees unless absolutely necessary).Please let me know if you need additional guidance or have any follow up questions.
Cas, please remember to positively rate my answers if I have answered your questions, and please let me know if you have any follow up questions.
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