View Full Version : If you default on one payment can the dealership report it stolen?

Sep 26, 2011, 08:55 AM
We missed one payment and was working out the rest of the down payment and the dealership is reporting it stolen can they do that?

Sep 26, 2011, 09:02 AM
They can not report the car stolen if you miss 10 payments,

They may ask you to return the car and they may repo it.

Sep 26, 2011, 09:06 AM
As Fr_Chuck says...

You can't keep it if you don't pay for it. They can take it back (reposess it) as they own the lien until you actually pay it off and do it on time. But that's NOT the same as reporting it stolen.

Sep 26, 2011, 09:17 AM
Can you provide some additional information? Why do you have the car if you haven't made the down payment?

Sep 26, 2011, 09:23 AM
We only missed one payment the next one is not due yet. We did a trade in for part of the down payment but was working out the rest of it with them. They have sent multiple text messages telling us they are and have reported it stolen.

Sep 26, 2011, 09:28 AM
Perhaps they are viewing this as a fraud through deception... where you were expected to make the down payment by a certain date, and you failed to. Because that is beyond any financed payment amount terms or agreement? Is there a reason you have NOT made the down payment in full by the agreed upon date? Was a bounced check involved? Just trying to get a better picture of what happened intitially as it will help us understand what they are doing and why.

Sep 26, 2011, 09:38 AM
No there was no set date as to when the full down payment was to be made. We where in constant contact with the dealer. Now they have reported it stolen according to their text messages.

Sep 26, 2011, 09:43 AM
That doesn't sound right at all... no set date can mean 4 weeks, 4 months, 4 years or more, and no business will leave something open ended like that... have you actually read the papers you signed again, more closely? There has to be something in writing even if you might not be aware of it at the moment. There usually are a lot of papers that end up signed.

Sep 26, 2011, 09:45 AM
Something isn't adding up here. There has to be a date on your down payment. If there isn't, you could take the next five years to pay it. It doesn't make sense that a dealer let you take a car without even a commitment to have the remainder of the down payment. As smoothy asked, was there a bounced check or some type of failed or stopped payment involved? What were the conditions applied to the down payment? We can't give you an accurate answer without knowing details like this.

Sep 26, 2011, 10:02 AM
When we discussed it over the phone and in person the last time they gave us until the middle of October for the down payment. No there was no stop payment or bad check we just missed ONE payment

Sep 26, 2011, 10:35 AM
So how many months have they been waiting for the rest of the down payment.

Ok, missed the down and was thinking payments.

If you have never put the money down, I will bet they have never did a finance on it, and they have never titled it to you.
So they still have a title in your name.

While yes they may report it stolen and you may be arressted, if you provide them a copy of the sales documents, bill of sale, contract and the such, you should be able to get charges dropped

Sep 26, 2011, 01:26 PM
I am not entirely sure if I understand what happened here, so I'll agree with Fr_Chuck... if you can provide a bill of sale and signed documents from the dealership, then you should be fine.
If they can provide evidence that you intentionally defrauded them by writing a bad check or stopping payment on a check, they can try to have you prosecuted for theft by deception or fraud.
Either way, you have missed a payment and they can repossess the car at any time.

Sep 27, 2011, 06:18 PM
NO. Purchasing a car on payments is a CIVIL contract governed by CIVIL law. They can repo the car but the police will not accept a stolen vehicle report.

If you did something to meislead them as to the value of the trade in or a clear title , THAT could get into fraud.

Sep 27, 2011, 07:20 PM
NO. Purchasing a car on payments is a CIVIL contract governed by CIVIL law. They can repo the car but the police will not accept a stolen vehicle report.

If you did something to meislead them as to the value of the trade in or a clear title , THAT could get into fraud.

They never completed the agreed upon and promised down payment for whatever reason... this is about that... not the finance contract part which is separate. No dealer would give them a completely open ended time to make it... it would be part of the purchase contract. We can't get a valid answer... because they might not have paid attention or misunderstood, but it would be in the paperwork. And what's in writing trumps anything a salesman might have said verbally.

As far as the value of any trade-in, the OP has no part in determining the value of that... the dealer says what THEY are willing to give for it, and they DO know what its worth for them to wholesale out to recoup their money, and they always make money on a trade or they wouldn't take them ( they always give less than black book for them, not blue book, that's retail, Blackbook is wholesale values)... and all the OP could say is yes or no to accepting it. That's how it works in the automobile business. Most trades go straight to wholesale auctions... dealers only keep what they think they can sell from their own lots.

Yes... I've got family, several in fact that have been in the car business for over 50 years.

Sep 28, 2011, 06:49 PM
We had worked out the down payment they are not reporting it stolen over that it is over missing ONE payment. They tell us that it was reported stolen and that a detective is on it but the only person we hear anything from it the dealer. He calls my husband dude and our child kid and text us like we are friends or something. He is very unprofessional in all conversations. The finance company is still in contact with us about payments so why is the dealership saying that we have stolen it and they are buying back the van?

Sep 29, 2011, 07:04 AM
Can they report is stolen, sure. They cannot win a prosecution if you have a bill of sale for the car. I wouldn't worry about it. It honestly sounds like they are trying to avoid the expense and inconvenience of a repossession by scaring you into making the payment or returning the car.

That you do owe them money on the car that is past due. Stolen or not, police report or not, they can come and take the car as long as you are past due. Instead of focusing on these empty threats, you need to work out a way to get your payments current or that threat of losing your vehicle will continue to hang over your head.

Sep 29, 2011, 12:56 PM
We have contacted the finance company and they still have the contract on our van. We have worked out an agreement with them. What can we do if anything about one of the men at the dealership texting and calling all hours and telling me that he wants to see me in jail and cussing at me? Is there anything I can do about that?