Dealer holding my down payment

[GatorDan]

I applied for a car loan pre-filing and was approved with $2000 down. I told my attorney that I had to sign some paper regarding the loan not finalized until credit was officially approved. My attorney (wrongly) told me that if the car was in my driveway, it was protected.

Well, we filed a week after and then 2 weeks later, I called the dealer about something else and they told me the deal fell through because of the BK filing. According to their documents, I was supposed to have 24 hours from "Official Notice" (which I never technically got). Regardless, they repossessed the car the next morning, despite me telling them I was bringing it it. I just had to wait for a babysitter for my twins. My car was repo'd about 20 hours after talking with the dealership.

Now, I am inquiring about getting part or all of my $2K don payment back. The dealer will NOT get me the legal guy on the phone, only his voicemail. They never call me back. My attorney says that I need to chalk it up as a loss. I'd like to know why it cost $2K to repo a car.

Does anyone have any ideas as to how to proceed or should I just forget about it. Clearly, we need the $2K now thanks to the BK. I don't really want to go into the dealership for a number of reasons.

Any ideas?

[SMinGA]

Read thru your loan paperwork. There should be something about having to return the car if financing does not happen - and what happens to the down payment $. Probably something about how they can charge you for $.20-.25 per mile driven, etc. But should also indicate the time frame for returning the balance of the down $ if there is no damage to the car.

[HMT]

Did you pay the down payment with cash or check? If you paid by check you could always try having your bank cancel it. Can they show you when they officially notified you? You may have to bite the bullet swallow your pride and go in to the dealership. You basically are telling us you never signed an agreement about the sale of the car, right?

So, the big question is how did it stay in your driveway for 2 weeks? If you have a bill of sale and all the other crazy paper work from the dealership and got info in the mail about payments then I would have to say the car was yours and the repossession was a violation of the automatic stay.

Basically, since you had no bill of sale and the like it was a $2000 rental car. Did you sign anything at all ever while dealing with this dealer?

[GatorDan]

I signed all the normal paperwork along with a "Spot Delivery Affidavit." It says that I have entered a retail contract that is pending my credit being approved. If I fail to return the vehicle as promised, I agree to repossession and waive legal process. "Any deposit made by me at time of purchase may be applied toward these damages." Damages referring to repo cost, cost to return to promised condition, etc. The car was perfect except I had put 380 miles on it.

I don't even know if they did the initial tag transfer or if my current car tag is still registered for the repo'd car. No mention of numbers in this affidavit other than a $500/day charge for not returning it.

Again, it was repo'd before 24 hours and was in otherwise perfect shape. I just can't speak to the person I need to speak to and my attorney is useless for this situation.

[GatorDan]

The dealership says the car was never "owned" by me so not protected, despite my signed bill of sale. It was always owned by the dealer. If I hadn't listened to my attorney and waited 2 more weeks to file, I'd have a car and my $2000.

Now I have to go through Roadloans to get a car loan since my lease is up in September. The other critical piece of information is that my other car is a Smart and unable to drive twins anywhere, unless one is driving. They are 7 months old.

[StartingOver08]

You got scr*wed because you signed the Spot Delivery deal.
Those are scams that many dealers use to increase your interest rate after you think you have purchased the vehicle. Search Spot Delivery and you will see lots of complaints.

It's a good lesson to learn now. NEVER take a vehicle with a Spot Delivery rider.

[car67]

large payment to car dealer cant it be recovered by the trustee for the Chapt 13 creditor pool since its within 90 days of filing?

[SMinGA]

I doubt it. The dealership is not a creditor - there was never any actual loan in place so this is not a preferential payment situation. The dealership can claim it for damages, expense of the repo, miles driven, etc.

Your BK attorney can try contacting them - might get more results if your atty calls. But that is assuming your atty is willing to put a little time in on your behalf.

large payment to car dealer cant it be recovered by the trustee for the Chapt 13 creditor pool since its within 90 days of filing?