ORLANDO, Fla — When you trade in your car to buy a new one the dealership is supposed to pay off the old loan. But what if it doesn’t? That’s what Cody Alexander of Winter Garden said happened to him after buying a new ride at an Orlando car dealership.
“As far as my bank is concerned, they’ve never received a check. They’ve never received anything validating the fact that I sold the car,” Alexander told Action 9 Consumer Investigator Jeff Deal.
He said he’d been waiting around two months for the payoff, and was still stuck with a loan on a car he no longer had in his possession.
Under Florida Law, a dealership is required to pay off the trade-in within ten working days.
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Consumer Investigator Jeff Deal walked into Benji Auto Sales on Orange Blossom Trail in Orlando and said, “We received a consumer complaint about you guys not paying off a trade-in loan.”
A worker replied, “Let me check and get the manager.”
Deal was looking to get answers for Cody Alexander. Alexander bought a white Tesla Model Y in June.
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Alexander showed the Action 9 team his car and said, “So, it’s cool I ended up with a nice car, just the experience to get to the car was super bumpy.”
He originally tried to buy three other cars, but each of those cars had problems, so he was relieved when he finally closed the deal on the white Tesla. But that relief didn’t last long.
“You can do the math there. It adds up really fast when you’re making two car payments that you’re not expecting to make,” he said.
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He was left with two monthly payments. One payment was for another car he tried to buy and the second payment was for the old car he traded in which was a Hyundai Elantra. Alexander claims Benji Auto Sales never corrected the paperwork to switch his new loan to the white Tesla and showed Action 9 bank records indicating the dealership still hadn’t paid off the loan balance on his trade-in.
Alexander explained, “It’s already been almost two months since I completed the sale. I completed the sale on June 24th and it’s now mid-August at this point.”
In Florida, the law is clear. Dealers must pay off trade-in balances within the ten business days or they could face legal trouble.
Action 9 spoke with attorney Jared Lee about it in 2023.
Lee said, “Unfortunately, it happens far too often.”
Back then, another customer, Gordon Hartz, complained he was stuck with two payments after Benji Auto Sales didn’t pay off his trade-in.
“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 not… let them live with themselves,” Hartz said.
Benji Auto Sales eventually paid it off, but only after Action 9 inquired about it.
The company is F Rated with the Better Business Bureau. Action 9 saw other online complaints about Benji Auto Sales not paying off trade-ins in a timely manner. One customer from Ocala sued the dealership in February claiming she had to make both car payments for three months and it caused a financial hardship. That case is still pending.
At the dealership, a manager wouldn’t come out to address the concerns with Action 9’s Jeff Deal.
Deal asked one of the workers, “What do you think about customers being treated like that?”
The worker responded, “No, I definitely don’t… I can’t mention on this.”
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Workers then told Action 9 their Miami shop handles that paperwork, but offered no explanation about why Benji Auto Sales didn’t pay off the loan as required by law.
Cody Alexander said, “It’s super shady and, like, just kind of feels pointless. I don’t know if things are getting like, the paperwork’s getting caught up somewhere, and there’s someone that’s just not doing their job or what’s going on.”
Action 9 also reached out to Benji Auto Sales through its website to ask if anyone could address the issue. So far, the company hasn’t responded. But Cody Alexander notified the Action 9 team on August 25th, it posted on his account that the trade-in loan had finally been paid.
Until a trade-in loan is paid, customers are on the hook for it, and it could hurt their credit if they don’t make payments. The car could also get repossessed which would be another mark on their credit history.
It’s important to check a company’s history and keep all of your documentation. When trading in a vehicle with an outstanding loan, make sure the dealer does their part, and that the loan is properly paid. If there are any issues, you can file a complaint with the Florida Department of Highway Safety and Motor Vehicles, that’s the agency that regulates auto dealers. Here’s a link: FLHSMV Complaint Affidavit
The Office of Financial Regulation also encourages all financial services customers who suspect questionable practices to submit a complaint, either online at https://www.flofr.gov/enforcement/submit-a-complaint-or-tip or by calling (850) 487-9687.
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