Let's put it this way.  In closing lots and lots of real estate loans in our prior career, we paid extra to overnight mortgage payoffs to stop interest from accruing on the loans as soon as possible.  Interest stopped accruing on the day the lender received the payoff and we made sure we had documentation of that date from the delivery service.

In every state I know, dealers are required by law to pay off prior trade-in loans within 30 days (often less).  Financially strapped dealers often don't have the cash to pay off your loan until they sell your trade-in, so they will delay until the trade-in sells or they get some other cash infusion.  They then end up paying more because more interest has accrued.  However, if they never pay it off or pay short, you could be liable.  The lender contracted with you for the loan and unless there is a transfer of liability clause in the loan document and the new RV purchase documents, you could be stuck.

If they told you they sent the check and it will take two months to clear, that is, in my opinion, a bald-faced lie.

It may be common practice and not necessarily a "scam".  However, that common practice is probably illegal depending on the law of the state where the transaction took place and it may even be a felony.

If I were in your shoes, I would find out the law of the state and send a certified letter demanding compliance with the law including proof of payoff.  And I would be prepared to retain an attorney.  Also, I would be in immediate contact with the lender and explain the circumstances and determine 1) your potential liability, and 2) how long it takes for a payoff to be processed upon receipt of a dealer payment.

This is NOT something to be taken lightly.  

   

An update on this issue. I called the state attorney general's office and was told I could file an online complaint form but they couldn't advise on legality of dealer's law/requirement. Completed form received automresponse but nothing more. Trade in loan was paid off two months and two days after purchase.

Also called manufacturer regarding tire upgrade exchange voiding warranty and of course that was not true.

Called our new mortgage company and they were totally uninterested in the fact that the trade in wasn't paid off even though it was part of their contract with us and the dealer.

Completed an online contact form to owner of the dealership franchise. Heard via email June 3nd from new general manager of the dealership from which we purchased saying he was new GM and this would not be swept under the rug, he would investigate. I followed up with a long email and didn't hear back. Sent another email a week later and received a reply that he had been out of the office and to please allow him time. Another week and I sent another email. (I can be pretty persistent 😛) Received a nice call from him yesterday saying he has been really busy and has been recruited for two years by owner of dealer franchise to help him turn around the company and he resisted until recently. Told him I/we wanted a full refund of the PDI we paid for, the consumer difference in the cost of Goodyear H Tires and the G tires, and one mortgage payment on our trade. He again asked for more time and sadly said we weren't the only people with issues that he was cleaning up.

Wouldn't that be nice? Be interesting to hear if there is any response from the state AG's office.

Sherry

Jack,

Guess I'm posting different issues on different threads on this forum. It took the dealer over two months to pay off our trade in, we made two additional payments on our trade before they paid off loan. The loan amount difference credited to us by our original mortgage holder was from the date they received the payoff, not the date of our contract, I believe. But you made a good point which I need to check further.

Yes, we had negotiated the tire upgrade at our time of purchase but when we got there to pick it up the salesman said switching the tires would void our warranty and they couldn't give them to us.

Also when we arrived to pick up the rig, the carpet was soaking wet (they had it at a show with no carpet protection) so delayed our change over, plus the inspection hadn't been done, there was a clamp missing on plumbing for running fresh water thru to flush black tank (know I'm not describing this right but hope you know what I'm trying to say) so basement flooded. Welded bolt was missing from entry stairs, lighting over entertainment unit was cross wired, and other things that took Guaranty a full day and a half to do. No lock was provided for refrigerator/freezer door (modification done after refrigerator left Frigidare)which supposedly had been provided with the rig by Dynamax and Velcro on doors didn't hold so two spills and freezer door banged into island causing major dent.
No instruction on PDI on how to turn valve underneath on primary propane tank and nothing in our manual so when auxillary tank ran out we had no gas. Had to call factory to learn that. Dealer didnt know unit so couldn't effectively do PDI. Common from what I've read on the trilogy forum.

In spite of all that, now that its all fixed as it should have been, we love our rig.

Sherry who is sorry for the confusion.

Finally, I have been badgering for 2 months the new GM at the dealership where we did this deal. Finally, after placating emails from him and I ran out of patience, I received this email in response to my P.O.'ed one sent Friday:

Sherry:

I am putting in your check request for your PDI refund and also the amount for the extra payment that you had made. In regards to the tires; do you want money for the cost of the tires or for us to change them here in December? Let me know and if you want money for the cost of the tires then I will add it to the check request.

-----
We'll see if the check comes but I told him we wanted the money for the tires too!

Looks like our persistence and badgering paid off. The AZ Attorney's office just sent a form reply citing budget cuts, etc. so he was useless.

Sherry

Cheryl,

BBB is effective only with those that choose to participate with the BBB.  They have no authority to fine anyone other than their own members, and if they get heavy-handed with fines, members are likely to leave.

Terry

Finally! We have been badgering the new GM at this dealership since last May and received a check today. I'd filed with the Arizona State Attorney General's Consumer protection office and received a generic reply. Replied back to the AG's office with a stronger letter plus keep the heat on with the Mesa dealer, weekly I was calling and emailing.

About two weeks ago we received a form letter from the AG's office that the matter had been resolved "according to the dealership who stated the check for the payoff was dated May 10th and implied the credit union had not cleared it until a month later and that a separate check for other issues had been sent to us. Wrong! I'd had many promises but the "check was always in the mail".

Another even stronger letter to the AG's office (with a copy to the dealership) with copies of emails with various promises included and pointing out the disparities.

Suddenly Jesse got a call from the dealership GM asking what address we'd like the check sent to and would we mind sending a letter to the AG once we received it. "Sure no problem." Unfortunately, or maybe fortunately, our mail forwarding service misdirected that week's mail forwarding so we just received the check today.

In the meantime I checked the BBB's site plus ripoff report and other sites with warnings about this dealer's ongoing practices. They do not have a good rep. Posting this to remind people to check the digital reviews thoroughly. Also to badger the bejesus out of those who have not treated you fairly, the old "squeaky wheel".

While we were in Mesa last week I gave serious thought to going into the dealership to introduce myself to the GM as his worst nightmare but decided that we had no check in our hands at that point so I passed.

When posting on the Internet one has to be very careful to post provable facts only as we've all heard of people getting sued.

We'll probably wait until after Thanksgiving to send that letter to the AG.

😄 Sherry

WestWardHo said:"We'll probably wait until after Thanksgiving to send that letter to the AG."

Consider waiting the same number of days that you waited for your check. If the dealer calls,"The letter is in the mail."