I wish i could have seen the original deal to compare to the new papers being sent, but I have to say that some of the comments are probably freeking this poor soul out. The comments that follow are based on 28 years of retail automotive experience and dealing with conditional sales contract with lenders. I am also assuming that the dealer is not a crook and am giving him the benefit of the doubt. He made a mistake and seems to have found a way to make Billy whole without raising his payment, or collecting any more cash from him, but rather buy increasing his book value on the trade. So long as he is not stretching the term or raising the rate, i think he is eating his mistake and now need some paperwork redone to match his plan.
Here is a thought... He may (as per accounting rules in his state, like some provinces here in canada), not be able to book the trade at a higher value than what is on the bill of sale... again an assumption, but that would explain why the deal has to be re-written. If he is putting 3k more into the trade to help billy out, then he has to show it 3k higher on the bill... and so he doen't eat it twice, he has to keep the difference the same hence raise the selling price 3k too.
1. Correct me if i'm wrong, but sales tax in NE is calculated on the difference after the trade, not on the original sale price... yes? if the difference is the same then the tax payable will be the same... no tax fraud.
2. Many Dealers charge more than MSRP for bikes. Happens all the time. No fraud here.
3. There is a trade worth a considerable amount I assume. The bank is advancing far less than the value of the new bike so over allowing on the trade against an inflated sale price has no impact on them. (i'm assuming thier was no lien outstanding on the trade)
4. The dealer has likely not booked the deal with the bank yet. It's the only way he'd be able to send out new papers, unless he tried and got a held offering... requiring other chsanges anyway. His approval was likely a "payment call" or "Total amount finance approval", and if original deal was not booked and he is not asking for than was originally approved, the bank will have no complaint when the loan is over secured.
Billy, i agree with most everthing written to you so far. You seem like an honest guy, but i like to think the dealer ain't so bad either. I agree that you should get professional advice before you do anything, but while from a strictly legal perspective you are in the driver seat, I think you'll sleep better if the final outcome is a mutual agreement between you and the dealer.
NO WAY you foot the bill, but if you can help him while he's helping you... you should!
Anyway, as so much of all of this is speculation on my part, so i will bow out here... Billy you can PM me if you like.
I just would like to say that most times, dealers are only guilty of being human. When they make mistakes too many of us think it's something more sinister than that. How he fixes the mistake is how he should be evaluated.
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Topic: she's home!!! not for long???????? (Read 10788 times)