‘I can’t make two car payments’: What happens when the dealer doesn’t pay off your trade-in balance?

ORLANDO, Fla. — A central Florida man claims a local car dealership left him on the hook for thousands-of-dollars for a car he traded in.

“It’s a really nice car. I like it and I’m happy to have it,” Gordon Hartz told Action 9 consumer investigator Jeff Deal.

The 2021 Volkswagen Jetta is just the car Hartz needed after the air conditioner went out on his old car.

“I was like, ‘Oh, well maybe I could trade it in and find a good deal,’” Hartz explained.

That’s what he did at a tent sale put on by Benji Auto Sales on Orange Blossom Trail in Orlando.

His old car had a loan balance of around $11,000 that the dealer would have to pay. But nearly a month after signing on to the sweet deal he thought he’d made, things started to turn sour.

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Hartz said, “I get a notification from Capital One, ‘Hey, you have to pay your loan.’  I was like, ‘What loan?  I haven’t had that vehicle in a month.’”

Gordon lives paycheck to paycheck. He had to ask his bank to defer payment on his old car that Benji Auto Sales was supposed to have already paid. At one point, the dealership told him it had made the payoff, but his bank said otherwise.

Consumer attorney Jared Lee told Action 9, “Unfortunately, it happens far too often.”

Lee points out the law in Florida is clear, dealers must pay off trade-in balances within ten business days or they could face legal trouble.

“And I do think consumers should be aware that this is a risk they need to be monitoring for after they trade a vehicle.  And the first thing is keep copies of all the paperwork,” Lee said.

It’s also important to research a company’s history before trusting them with the trade-in because until the loan is paid consumers are on the hook.  With missed payments their credit could take a hit.

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Hartz said, “So, unless they actually follow through on any of their promises, I have to pay two car payments this month. And that’s just… I can’t make two car payments.”

Deal saw similar complaints about Benji Auto Sales’ Orlando location on the Better Business Bureau website where it has an “F” rating.

After Action 9 interviewed Gordon, the dealer did finally pay off the loan.

It sent an email that reads:

“Thank you for your concerns regarding Mr. Gordon Hartz claims in his purchase of a 2021 VW Jetta and his Trade in of a 2018 Kia Niro.  As part of benjiautosales Policy, attention to our customer’s needs is of prime importance. Please let Customer Hartz know that the Payoff has been made on his vehicle. Kindly allow for about 15 days to be reflected in the Customers account. We apologize for any misunderstandings.”

But even after follow-up messages and phone calls, the dealership didn’t explain to Action 9 why it didn’t pay off the loan sooner.

Hartz said, “It’s untenable to me. And I don’t understand how somebody can go to work, know that they are doing this to people and let them live with themselves.”

Gordon also claims the dealership owes him $600 as part of the deal to help with his first couple of payments.  Benji Auto Sales didn’t answer Action 9′s questions about that, but did call Deal and try to sell him a car.

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