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I financed it through a bank. I paid the downpayment at the time I purchased the car. It has been about 5 months and now and I get a letter stating I owe $500 more.
Asked on December 17, 2011 under Bankruptcy Law, California
Answered 13 years ago | Contributor
It depends on the circumstances. It would be proper if--
1) There was a mathematical error--one which can be seen to be a simple math error from the documentation--and that's why they need the extra. For example, car was $20k; you financed 17.5k and should have put down $2.5k, but they added it up wrong so you only put down $2k, meaning there is a $500 shortfall from the sale price.
2) For some reason either applied for or were given less financing than you thought you'd get--so car sells for $20k, you put down $2.5k, applied for $17.5k of financing, but only got $17k of financing, leaving that $500 shortfall.
3) You paid the downpayment partially by credit card, partially by check, and for some reason the check did not clear or was lost, leaving a $500 shortfall.
In cases like there, where there is no change in the price but for reason they didn't get all the money they should have, they can seek the extra. What they can't do is change the total price, or reduce retroactively the value you're getting for any trade-in.
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