Legal Question in Civil Litigation in Iowa
I purchased a vehicle in North Carolina in June 2009 and I live in Iowa. I put down $2750 in cash and the dealership gave me $500 trade-in-allowance on my disabled vehicle. I was notified by the dealership in mid-July that the original financing company nor any of the 5-6 other banks would finance my sales contract because the amount financed was too much. Part of the deal included an extended warranty for $1900. The dealership sent me a new sales contract which excluded the extended warranty and brought the price down $1900. I refused to sign this contract. Then they sent a second contract in which they adjusted the warranty to $1200 which lowered the amount financed by $700 but I did not sign that new sales contract either. I sought my own financing at a far lower rate through a credit union and the credit union informed me that I was overcharged $1500 - $2000 of what the vehicle was worth. I did not take GAP coverage. So I countered the dealership by asking them to come down on the price of the vehicle or to give me $500-$1000 more for my trade-in. They refused to change their vehicle asking price and refused to give me any more for the trade-in. They asked me to bring the vehicle back in August but I told them that I couldn't and I told them that they could come get the vehicle. Three weeks after that conversation, which is today, they had a tow truck pick up the vehicle and I gave the driver one set of vehicle keys and he gave me my plates since the vehicle is registered in my name in the state of Iowa, county of Dubuque.
My questions are these. How long should it take for the dealership to return my $2750 down payment? Legally, should I expect to receive all of the down payment? Obviously, since we live in Iowa and they car was purchased in North Carolina, we have put about 5000 miles on the vehicle from June until September. Am I responsible to pay for that mileage? I do not feel that I am responsible for those miles since I did not breech the original contract. What about my trade in? I assume that I can pick that up from the dealership. Legally can I demand that they have the car ready for pick-up today? Of course I'll have to tow it because the engine is blown but when can I legally do that?
1 Answer from Attorneys
That's a pretty complicated question to answer, and since both the vehicle, your tradein, and your money are now located in North Carolina that is where you will have to litigate if you expect to recover your down payment.
The answer to your specific questions must also, therefore, be answered by a lawyer who practices in North Carolina.
It seems likely to me that the dealership will try and make you pay for the depreciation in value and the use you got out of the vehicle between the time you rejected the amended sales contracts and either declined or were not approved at the credit union. They will probably also try and make you pay for the cost of recovering the vehicle and transporting it back to North Carolina-all of which may well substantially exceed your down payment.
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