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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 116143
Experience:  Attorney experienced in commercial litigation.
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On May 21st I purchased a car from Carvana LLC, they

Customer Question

On May 21st I purchased a car from Carvana LLC, they delivered the vehicle to my door and at that point electronically processed my down payment. The down payment returned due to insufficient funds as I made a calculation error. I spoke directly to Carvana before they received the retuned payment and was advised that they would re attempt to draft the payment on June 4, this was the last conversation I had. I called on June 24 regarding my tag that I had not received and was told they had scheduled the vehicle to be picked up because I never made the down payment. I recapped our conversation that we had last and was told they didn't process the payment and they wanted to vehicle back. In the meantime I made the first payment on the vehicle to the finance company, when I was told Carvana scheduled the vehicle to be picked up I called as I was some confused about what happens to the loan. I was advised they had no knowledge however Carvana is a sister company of the finance company and if they pick it up it will reflect as a repossession on my credit. I attempted several times to correct the issue with Carvana however they are refusing payment. I read the contract and it does say they consider it a default if the down payment is not made. My question is, is filing chapter 13 a viable option being that the vehicle is a new purchase. I want to keep the car and have the money however they are declining to rise the down payment.
Submitted: 11 months ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Unfortunately, if you have the money, you are likely not going to qualify for Chapter 13 or Chapter 7 based on your debt to asset ratio. If your payment bounced, under the principles of contract law they are supposed to give you a chance to cure that breach of contract. So you need to contact them and offer to send them the money to make up for the bounced payment. If they refuse to accept it, then you need to inform them they are in breach of contract for not allowing you to cure the breach and not being in good faith in the contract. Generally they will accept the reimbursement of the down payment that bounced, but you are going to have to work your way up through to supervisors who can authorize it.
If they refuse to negotiate and insist on repossession refusing to allow you to cure the breach, then you would have to sue them for breach of the good faith and fair dealing present in all contracts under the principles of contract law.

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