Imagine buying a new 2024 Chevrolet Silverado pickup, trading in your 2017 truck to a Chevy dealer, and then your bank says you still owe them for the old pickup you traded in. Here is David's incredible story.
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My bank demanded $35,000 for my trade-in, which the dealer should have cleared and paid off.
Imagine driving a new truck for four months, and then you have to give it back because the Chevrolet dealer wasn't honest.
You've just bought a new 2024 Chevrolet Silverado pickup, traded in your 2017 truck to a Chevy dealer, and then your bank informs you that you still owe them for the old pickup you traded in. This is the unbelievable story of David's car dealership nightmare.
That happened to David Wright, from Bonneau, South Carolina, after he bought a new 2024 Chevrolet Silverado pickup.
Here's David's story.
According to a report from Count on News 2, "David was left in shock after a local dealership severely damaged his credit score following a trade-in months earlier."
David traded in his 2017 Silverado to Winding Chevrolet GMC, Kingstree, but later discovered the pickup wasn't paid off and that he was suddenly responsible for two sizable payments.
Imagine the shock David felt when his bank contacted him, demanding a payment on his old truck.
The report by Count on News 2 says Wright purchased a 2024 Chevy Silverado from the GMC dealer in June and traded in his 2017 Silverado at the same time with a balance of around $35,000.
Wright bought the new 2024 Silverado pickup and rolled the balance he owed on his 2017 Silverado into the amount he financed with GM Financial for the new truck.
The GMC dealer was supposed to pay off his old truck but didn't.
In August, Wright says he received the first of many concerning letters from the bank through which his former truck was financed.
Wright said: "I got a letter from TD Bank wanting money. So I called them, and she said, 'You're late on the payment,' I said, 'Ma'am, I traded this truck in June."
Wright asked Winding Chevrolet why they had not paid, and he was told that their bank account had been hacked.
Wright added: "They were trying to get everything straight so they could take care of it. As soon as they got it, they would pay it off and get the money back in the bank."
The report says Winding Chevrolet made one payment of $812 on August 20. However, David Wright continued to get calls from the bank about missed payments.
The ongoing struggle was a source of frustration for David.
He said: "Now my credit is going down because of them being late, late, late, really late."
Later, a letter arrived, stating that TD Bank would repossess his new Silverado truck if the payments were not made. The potential impact on David's credit score was a serious concern.
Furious at the Chevy dealer, Wright added: "They have made no attempts to change nothing. "I got a letter, right to cure, where they are fixing to start repossessing the truck, and once they repossess it, then that's really messing my credit up."
The dealer's lot was empty.
News 2 revealed that they went to Winding Chevrolet GMC to investigate and discovered the empty lot; all new cars and trucks were gone.
Michael Winding, owner of Winding Chevrolet GMC, said that the new vehicles had been moved because they are in the process of changing out GM Financial as their floor plan loan company.
David gets his 2017 Silverado, but he must return the new truck.
The Count on News 2 report says the trade-in contract with David was eventually canceled, and Wright was given his old truck back.
David says, "Channel 2 news came up here with me, and now, low and behold, I got my truck back, and they got theirs."
Winding Chevrolet GMC confirmed that a request to cancel the new car deal with Wright had been submitted and that he would be compensated for what was already paid under the contract.
David's issue was resolved; he received his old truck back, but his credit score still needs to be straightened out. He is waiting on final confirmation from GM Financial but is hopeful the situation is resolved.
"Now I have to get my credit straightened back out," he said.
How do you ensure the dealer pays off the loan for your trade-in?
Consumer advocates recommend that you do three things:
- Get a written promise from the dealer
- Follow up with the lender
- Verify within 10 days.
Consumer Education says, "If your new car purchase includes trading in a car with an unpaid lien balance, be sure to get a promise, in writing, from the dealer regarding the trade-in payoff date. Be aware that if your next payment is due before the dealer agrees to pay off the loan, your payment will not be made on the due date unless you elect to make that payment. Follow up with the lender to ensure the payoff was actually made."
Unfortunately, not all new car and truck dealers are honest. David Wright found out the hard way.
Have you ever traded in a vehicle, and the dealer failed to pay it off? If so, click the red Add New Comment link below and let us know.
I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you'll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.
Photo credit: Denis Flierl via Chevrolet
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