Shady dealership during a lease buyout

[paulso]

My girlfriend's X3 lease was coming to an end, and she wanted to buy out the vehicle, so she reached out to the original dealership to find out more about the buyout process and inquire about current interest rates. They told her she would need to complete a credit application before they could provide rate information, which she did.

After weeks of unsuccessful attempts to reach them, she decided to work with a different local dealership. To our surprise, the local dealership told her that the original dealership had already completed the vehicle purchase two weeks prior.

She never authorized the first dealership (either verbally or in writing) to proceed with buying out the lease, she was simply just inquiring about the process. When she contacted their finance manager and other staff members, they claimed the purchase couldn't be reversed and are now holding the car hostage unless she accepts a ridiculous 7.7% interest rate.

Has anyone been in a similar situation? Any advice on how to proceed?

It surely isn't legal for them to just purchase her car without her consent. After speaking with multiple people at the dealership, we finally reached a manager who acknowledged that "someone got trigger happy," and admitted they "dropped the ball," and that this should never have happened. Up until this point we were met with just lies and bs, some coming from the finance manager who even claimed they never purchased the car.

Thank you.

[Westside Guy]

This is ridiculous and totally unacceptable!

Who was the dealer?

[OC40]

This isn’t legal unless there is some funky state statue allowing this, which isn’t likely.

Filling out an application isn’t accepting a loan. I’m curious how the dealer locked the rate/loan without her signing the loan documents.

What’s the manager saying other than someone “got trigger happy”? 7.7% seems egregiously high.

[FLX4M]

This is garbage. Contact the State AG and let them know what transpired. Keep us in the loop.

[zx10guy]

Unfortunately, this doesn't surprise me. I was just going through the whole buying a new car process. I went back to the dealership I purchased my now totaled Toyota from. The process was normal up until the sales guy slides this paper in front of me. Says I have to fill it out as it's required by the dealership before they talk numbers to me.

I look at the paper and the top of it is labeled "Buyer's Order". Which made me very uncomfortable. Then at the bottom with all the legalese, I couldn't read two paragraphs which were small in print and blurry as the document was a photocopy. The sales guy wanted me to sign this. I told him no. I want to know what those two paragraphs say before I sign anything. He goes back to the sales manager and then comes back to talk numbers without me signing that document. At that point, I was done and ended up buying my car elsewhere.

I wonder if in the process they snuck in some document your girlfriend may have signed that is now causing these issues.

[paulso]

Originally Posted by Westside Guy

This is ridiculous and totally unacceptable!

Who was the dealer?

This is a dealer in the Chicago are (I am not sure if I should post the name here )

Originally Posted by OC40

What’s the manager saying other than someone “got trigger happy”? 7.7% seems egregiously high.

That is all he stated - as I mentioned this was the first person out of 5-6 probably she spoke with who at least admitted this was their fault. The second dealership she contacted said they might be able to offer 5.5%-5.9%, but it's not even about the difference as much as it's about the principle that now she appears stuck, and if she really wants the car she needs to make a deal with these people.

Originally Posted by zx10guy

I wonder if in the process they snuck in some document your girlfriend may have signed that is now causing these issues.

She never filled or signed anything (other than the initial credit application which I don't see how they could spin around and claim it's a purchase order) because they would not send any documents via email or mail. She has been asking them for the last 3 weeks to get something in writing. The only thing we got was their offer yesterday and even that was sent via text message and email in the form of a screenshot.

[Westside Guy]

You should definitely file a formal complaint with the appropriate Department in the Attorney General‘s office in Illinois.

[OC40]

Originally Posted by paulso

She never filled or signed anything (other than the initial credit application which I don't see how they could spin around and claim it's a purchase order) because they would not send any documents via email or mail. She has been asking them for the last 3 weeks to get something in writing. The only thing we got was their offer yesterday and even that was sent via text message and email in the form of a screenshot.

I’m in Chicago and just purchased an m340 from the dealer in Chicago. There is only one dealer in the city proper. That’s unfortunate as I had a great experience.

As others have said, I would consider reaching out to an attorney.

[brianeck]

Originally Posted by paulso

This is a dealer in the Chicago are (I am not sure if I should post the name here )



That is all he stated - as I mentioned this was the first person out of 5-6 probably she spoke with who at least admitted this was their fault. The second dealership she contacted said they might be able to offer 5.5%-5.9%, but it's not even about the difference as much as it's about the principle that now she appears stuck, and if she really wants the car she needs to make a deal with these people.



She never filled or signed anything (other than the initial credit application which I don't see how they could spin around and claim it's a purchase order) because they would not send any documents via email or mail. She has been asking them for the last 3 weeks to get something in writing. The only thing we got was their offer yesterday and even that was sent via text message and email in the form of a screenshot.

Its a really weird flex and call for help to describe someone utterly screwing over your significant other and/or you, and then Stockholm syndrome protecting them by ensuring they continue to get to anonymously keep screwing over other people.

[Phillies8008]

Unless she signed a buyer's agreement, she hasn't purchased the car. I'd call whomever the loan was processed through and let them know that regardless of what the dealership has told them she has not purchased the car and will not be making payments on that loan.

Then I would find a dealer and never use that one ever again under any circumstances. I'd also contact BMW NA and let them know what's going on.

[Westside Guy]

Originally Posted by paulso

This is a dealer in the Chicago are (I am not sure if I should post the name here )

You really should post the name of this dealer to alert your fellow Bimmerpost members that live in your area about this shady tactic!!!

[Phillies8008]

Actually, thinking about it, I wonder if the dealership isn't completely BSing you. I find it hard to believe that any financial institution would process and execute a loan without a signed credit agreement. A credit application certainly wouldn't fill that need. If you don't already know, I'd demand to know who the loan is supposedly through and contact them ASAP.

[LuvMyE92]

Originally Posted by paulso

Has anyone been in a similar situation? Any advice on how to proceed?

Yes, and in my case I called BMW FS since they (the leaseholder) own the car. I explained what happened (different circumstances but still an illegal move by the dealer) and within hours I had a call from my salesperson asking me to come in and sign a form. I refused and told him that if I didn't get my money back, I would be taking legal action.

I got a check within a few days.

[thebmw]

Originally Posted by paulso

This is a dealer in the Chicago are (I am not sure if I should post the name here )

For years, I've seen people ranting on the forums about shady dealers and horrible experiences, but then refused to list the dealership or shops name. If it really happened, then list who it is. It is only considered defamation if your claims are false.

I don't understand the psychology of people who come here to warn the community of an illegal action but then fail to tell us who's committing that illegal action. It's almost like someone saying "there's a thief in our neighborhood, but I'm not going to tell you who haha". Seriously, who are you trying to protect here, us or them?

Separately, are you sure this is the complete story? Are you sure there are no details or fine print that you weren't aware of?

Did you do your homework on that dealership before you went to them? Like others have said, there's really only one in downtown Chicago and they have an awful reputation.

Finally, 7.7% is actually a pretty good rate in the used car market. Rates are between 7 to 10% with some going as high as 12% depending on your credit. Even if you did get a slightly lower rate, you're looking at maybe $10-20 dollars of savings a month. A couple hours of attorney time will cost you more than all of the extra interest that you will pay.

[tcphoto]

Local television stations love these consumer fraud stories, I'd go to the dealership and share that statement and give them a chance to kiss your butt. If they don't bend over and make you feel like the most important person there, drive the car to another dealership and see what they will do for you.

[OC40]

Originally Posted by thebmw

For years, I've seen people ranting on the forums about shady dealers and horrible experiences, but then refused to list the dealership or shops name. If it really happened, then list who it is. It is only considered defamation if your claims are false.

I don't understand the psychology of people who come here to warn the community of an illegal action but then fail to tell us who's committing that illegal action. It's almost like someone saying "there's a thief in our neighborhood, but I'm not going to tell you who haha". Seriously, who are you trying to protect here, us or them?

Separately, are you sure this is the complete story? Are you sure there are no details or fine print that you weren't aware of?

Did you do your homework on that dealership before you went to them? Like others have said, there's really only one in downtown Chicago and they have an awful reputation.

Finally, 7.7% is actually a pretty good rate in the used car market. Rates are between 7 to 10% with some going as high as 12% depending on your credit. Even if you did get a slightly lower rate, you're looking at maybe $10-20 dollars of savings a month. A couple hours of attorney time will cost you more than all of the extra interest that you will pay.

I mentioned this above. I purchased my m340 from that dealer and had an amazing experience.

Our sales rep was phenomenal. Finance manager was very good. The genius that set up everything with us was also phenomenal. It was actually the best experience we have had at a dealer.

That said, a person in our building had an absolute shit experience with said dealer. She didn’t say what, but said it was awful.

Regarding the rate. I’m seeing 5.7%-6.00% for used rates in Chicago. For my credit score, anyway. Confirmed with my banker.

[JABCAT]

They have to provide her with all the paperwork she signed (or supposedly signed). Have you/she received the paperwork?

Also, 7.7% is not a good interest rate, and if another dealer is claiming they can get you 5.5%, it really means you can probably get 4.5%. Every dealer pads the rate because they get a kickback.

Always get your own financing then ask the dealer to beat it. I recently refinanced my wife's '22 X3MC & my '23 M2 at 4.64%

[LH44]

Threads where people bitch about a dealership without naming the dealership shouldn't be allowed.

I'm on their side.

Enjoy the new car.

[Janjohn]

Originally Posted by Phillies8008

Unless she signed a buyer's agreement, she hasn't purchased the car. I'd call whomever the loan was processed through and let them know that regardless of what the dealership has told them she has not purchased the car and will not be making payments on that loan.

Then I would find a dealer and never use that one ever again under any circumstances. I'd also contact BMW NA and let them know what's going on.

Sounds like a good plan. I hope it works out for the OP. If you’re unhappy with a dealership a call to the USA distributor should be the next step.

[thebmw]

When I look up rates, this is what I found. So if you're finding rates around 5%, that is amazing.

[OC40]

Originally Posted by thebmw

When I look up rates, this is what I found. So if you're finding rates around 5%, that is amazing.

[T.R.S.]

"as low as" is the advertising equivalent of "up to 70% off or more!".