Positive equity trade question - off topic

Sorry for the post here, but I'm getting no action in the "off-topic" forum. I'm trading our van on a new one. It's a lease, but they dealer is buying my van for $10,500. They said it will take about one week after delivery of the new one to get our $10,500 check. It's a reputable and long standing VW dealer in the area. I owe nothing on the van and have a clear title in hand. Is this normal or should I demand a check on delivery of the new van?

I'm confused, why wouldn't they discount the price of the vehicle instead by the 10.5K and thus lower your lease payment significantly.

Not as knowledgeable about US TAX, but there is an advantage to trade the old car in as you only pay sales tax on the difference. Which could also be benefincial for leases if you are lowering the lease amount.. Good luck

It's state dependent so it only works on specific states. But yes, when the state allows you to apply the trade-in to the purchase/lease price you can lower you tax debt.

The dealer maybe shopping the van or even taking it to auction. More than likely he has to wait for his money and does not want to advance you funds that he hasn't seen. Have him show the purchase as a trade to lower your sales tax liability. Waiting for the cash is fine, if uneasy about it have put it in writing the maximum wait time. Sometimes these things take longer and get neglected.

New car is a lease so no tax advantage. I want the cash for something else, not a lower payment.

Quotes source post: 7991084

That's how they will be selling it for sure, but that's not my issue if they do sell it or not. I'm not too worried because it's a good dealer, but I thought it sounds a bit odd. Never been in a positive equity trade before.

Have you purchased from this dealer before? I would think you could modify the IOU from the dealer to have a specific paid in full date to you, a deferred pay't , but not open ended like "it will take about a week".

The wait makes no sense. Any new car dealer should be able to front $10k without hesitation. Chump change. If you can, I'd wait the week before I gave them the keys to the van and took delivery of the new vehicle... or at least get a better explanation.

Hold the title till the check clears.They may be in financial hardship!

You are not the dealer's bank. They should be paying you when you give them the keys and title. If not at least put you as a lien holder on the title you give them, in Illinois there is a space on the title for this, not sure in Ohio. Or take the van to CarMax and see what they will give you. They pay up front.

Agreed. Don't deliver the title until you have the cash in hand.

AH, so you wanted the cash to spend rather than bring down the cost of the lease. Now it makes sense. I couldn't understand why you needed a check. Like others have said, I would NOT give my car over t anybody without cash in hand. They sure aren't going to let you off the lot without you paying them for the car so why do yo have to wait for a check?

OpticalTDI: The others are dead-on, IMHO. "Reputable" and "longstanding" don't amount to a whole heck of a lot in today's ecomony. Why give the dealer an interest free "loan?" I've never heard of such a thing...he''ll give you a check in a week or so...and your bank might put a hold on the deposit, too before the funds are available....everybody is making a few buck off you. I would have them wire the money to your account. Verify it's there, hand over the keys, and executd title. Sounds like the dealer (or manager) is pretty shady, or playing you for a fool. VW dealer feels they have you locked in and, hey, if you can wait 10 days for your money........the dealer wins in every way. Be smarter, demand payment when you hand over title/keys. You are selling the vehicle and really don't want to be in a lienholder position. Good idea, but all it really does is complicate the process and cost you more time to go back and sign-off on the title and it also costs the dealer more money. Having said that, demanding that you are given a lienholder position on the title is a good ("strategery"), because if that is unacceptable, then he can wire you the funds, or give you a check. If not, find another dealer, period.....They aren't the only ones with the van you want and any dealer VW- (or....Porsche?????) can or will be able to service your new one. Most likely, you wouldn't give anyone else anything of value of yours (a watch or a ring) and let them shop it around before they pay you. They are in the business of selling cars and that means that they have a damn good idea of what your van is worth, period. If they can't pay you for it, then don't accept the "wimpy burger" excuse.......I'll gladly pay you next Tuesday...... my .02 r\ scott

Look at it this way... Do you get to take a car off their lot and tell them you'll send a check in a week to 10 days...lol

how do they know this transaction will take a week?..... it might not even happen. +1 on not giving them anything till the cash shows up.

Quotes source post: 7991846

I abide by this principle: "If you want my car title out of my left hand, then my right hand better have just the right amount of green stuff in it".

I dont think they would let you leave with out paying them. I am trying to think if I ever ran into that when i was in that ***** industry. When we would whole sale cars whole salers ALWAYS paid us the day they got the cars. If we bought a car we had to pay for it. Im going to say no... I dont like the deal... Basically it is like you walking off the street and selling them a car.... If someone was doing that, they wouldnt not pay the guy... Somthing is fishy here.. Either the used car manager is playing with numbers becasue of a bonus. Or the ruthless bastards dont want to be out 10,500 for a few days till they flip it tot eh whole saler or another dealer..... 10,500 is nothing to a dealer. Unless he is a small used dealer and is using the auction house to finance his used car inventory.

Optical TDI: Your Spidey senses are tingling for a reason. I've learned from experience that when something doesn't feel right it usually isn't. It doesn't matter that you can't figure out a motive or how they could screw you or otherwise profit from this. They know. This is my motto: "Just because you can't think of how someone can f### you, doesn't mean they're not going to F### you." Here is an example. A few years ago, we bought a new minivan from a local Ford dealer. My wife was going to pick up the car and give them the check (no financing). This way I wouldn't have to take off from work. Just before I was about to leave for the office, the dealer called. They were going to raise the price of the car by $1500, but give us a $1500 discount, due to some clerical error. The net amount would be the same. I told the dealer "I don't know how you're F###ing me, but you're F###ing me." After I hung up and thought about if for a moment I realized what the scam was. There was $1500 rebate that Ford was giving. The dealer was going to keep it for himself.

The Dealer is trying to manage his cash flow. This is not your problem. You give him the title, you get cash. If the cash will come a week later, you hold the title until you receive the cash.

It is normal. Car dealerships don't just write up a check like you do at home. A check request needs to be submitted, and that goes to either the GM or CFO to be approved. Usually, 2 signatures are needed on a check. Nobody at the dealership is going to rush through the process for you. I wouldn't worry about you not getting your money if it is a reputable dealership. Other things, paperwork need to be processed as well, such as verifying that your trade/title is clear, and everything is in order. Your lease contract needs to be finalized and submitted to the bank as well. Dealership's perspective: What if your title is fake, what if you still have a lien on the vehicle, what if your lease is not approved (if it hasn't already yet been submitted and preapproved. That happens often with late deals). If they gave you your money right away, and you are a fraud, you could be gone! But the dealership is not going anywhere if you don't get your money after a week. And YES, dealerships will let you leave with their vehicle without you paying them first, provided your credit report checks out good. That happens ALL the time, customers bring in their downpayment the next day or two. Not everybody walks into a dealership all prepared to buy a car.

Quotes source post: 7993525

Couldn't agree less. I've traded in cars with equity towards a lease many times, and I have NEVER left the finance office without a check in my hand for my car. Car dealers scratch out checks every day - there is no mysterious process to it at all, especially not for $10k. If the dealer doesn't want to rush through the process for the customer to get the sale done, then he can take a flying leap. No way no how do I walk out of that dealership with no car and no money.

Sounds fishy to me at first blush. Would they let you have a car for a week before paying for it? I doubt it. My hunch is they are selling it at auction or already have a buyer and are pretty sure they are going to get more then what they are offering you. Pete

Quotes source post: 7993525

Uhh... No. If this were the case a dealer would never even give a customer trade-in credit on the purchase of a car. Certainly they assume an element of risk, but that is the business. CARMAX will cut you a check within an hour.

Quotes source post: 7993525

Somebody has you snowed. IN the dealer ships I worked at the controller could sign a check and they could also print one. When I went to the auction to buy cars.. Guess what, I took the check book and it had 2 signed checks in it.. I paid for the cars the day of the auction.

Well...no point arguing about this. I wasn't stating my opinion, just what I know from experience. Some dealerships might work differently. I've also worked at dealerships, and still do. I actually just went around this morning asking people who've worked in the business for many years and all over the place, all of them agreed with what I stated. It is just the normal and correct/safe way to process a deal. The OP will get his money back, if it's a reputable dealership. Just wait and we'll all know. Kyle: Buyers can write checks, of course, that's the way they do business. Controllers can write checks, of course, they are the ones that do that. But will they do that for a customer who just walked in for a car deal with a trade, without first verifying that all documents/title/payoffs are in order, and are accurate? Generally, No. Some dealerships might do that, I'm sure. Now, if you raise hell, like an uncivilized customer...you might be able to get your check the same day.

To the OP: Are you still driving your trade, or have you turned it in? If you have already turned it in to the dealership, and waiting for the new vehicle, then they should have time to be able to have the check ready at delivery, if you want to request for the check to be ready at that time. They could at least verify that the title is clear and good, if they want to accomodate your request. One more thing, the contract is not "complete" until you take delivery of the new car. So, you could actually change your mind and decide not to get the new car. The more reason why the dealership will want to wait till the deal is finalized/funded before cutting you a check. Funny how everyone is stating their opinion on what they think, and what should be the way. I know, I would want my money right away too! But your question was if it is normal to have to wait a week for your check. My answer is yes, it is normal (or it is not uncommon, if you want to put it that way) for dealerships to operate that way. No fishy thingy going on, especially if it's a reputable dealership that is going nowhere, and is not going to cheat you out of your $10500 to end up in court! Really...how much interest can you lose or make on $10500 in a week???

@Cosmosc4s, we did hit you kinda hard huh? LoL sorry. But in your last post How much can you make or lose on 10,5 in a week.. I think its more of, What if the car gets stolen, or total loss damage while in the posession of the dealer that "bought it"....... Lets say his drunk *** sales person takes it out and kills someone with it? Their is a lot more invloved here that the money. I still say... No they get nothing until they pay for it. The van, the titile, nothing. Whatever you do TAKE YOUR PLATE ALSO