Can a Dealership Sell Your Trade-In Without Permission?

A mom claims a car dealership tried to strong arm her into a bad deal by foisting a Jeep Wagoneer on her and taking her trade-in without a written contract. She says when it was time to sign, it changed the terms they’d agreed on verbally.

TikTok user Mem (@mdwat23) says she was interested in purchasing the Wagoneer and had a car she wanted to trade in to help bring down the price.

She says the dealership sent her home with the Wagoneer without signing any paperwork. And this is where the source of her woes appears to have started. It’s a practice sometimes referred to as “yo-yo” haggling, i.e., dealerships verbally telling buyers one price and letting them go home with the car. Afterward, when it’s time to sign sales documents, dealership associates will insist drivers pay a different price from the original agreement.

That’s why Car Buying Tips strongly advises consumers to avoid driving a car off of a lot without finalizing paperwork. This advice may have benefited Mem.

What Happened to Her Trade In?

In her first video about the incident, Mem says she drove the Wagoneer without finalizing the sale in writing. She adds that she didn’t sign on the dotted line for the sale of her trade-in, either. Then she says that when she called to ask about her trade-in and the overall deal, the sales rep said her trade-in was no longer available.

That’s because they sold her trade-in, Mem says, which left her outraged.

Mem claims she demanded they return her “hoopty.” Despite making it very clear that she was no longer interested in the Wagoneer, she says they gave her the runaround.

Three days went by after her initial phone call, Mem continues, and she didn’t receive any response from either the sales or finance departments. When they finally called, Mem says a finance worker completely ignored her concerns and didn’t address that she wanted her original trade-in back. Nor did they speak to how they put her in a vehicle that Mem says felt like a rental with too many “loose ends.”

Mem says the finance employee said they had a wonderful deal ready on the Wagoneer. She says that when she asked about her trade-in, she wasn’t given any clarity. This prompted Mem to reiterate that she didn’t sign any paperwork. According to her, the first deal she signed was nullified when the bank they contacted rejected it.

In Mem’s eyes, that deal was dead and gone, which means that the dealership wasn’t authorized to sell her vehicle. Then Mem says she contacted her friend who works at the dealership, who ultimately said they’d get her trade-in back and offered to come pick up the Wagoneer.

Mem agreed, she says, but it was bittersweet.

“I loved it so much, seriously!!! It made me sad to give it back, but something felt really really off!!” she said in the comments.

Was It All to Sell Her an Extended Warranty?

The entire ordeal left Mem questioning whether or not the dealership had sold her car in the first place. She speculates they attempted to make her think that her car was no longer available to convince her to take the deal on the Wagoneer.

Why would they do that? Mem thinks that the financing debacle was rooted in the dealership’s attempt to secure a more profitable deal on the Wagoneer that involved getting her financed for an extended warranty.

Mem preferred the first deal that she had signed off on, and not the alternative one that she says the bank was seemingly trying to coax her into. Mem didn’t believe she needed an extended warranty, as the Wagoneer only had only 6,000 miles.

Others have opined that car dealers can indeed earn more money selling prolonged warranty agreements. In some cases, extended warranties may cover repairs that are unlikely to be necessary. The Federal Trade Commission (FTC) notes that some duplicate coverage manufacturers already provide through their warranty.

Before agreeing to an extended warranty, which may be more accurately called a service contract, the FTC warns that you should read the terms and do some research.  Per the FTC, make sure it doesn’t duplicate the terms of your current warranty. Further, be aware that the more if covers, the more it costs. Finally, the agency points out that some may have exclusions that allow them to deny coverage or require you to get service at specific establishments.

The Wagoneer Saga Finally Concludes

In a follow-up video, Mem shows that her original car, a GMC Acadia, was finally returned. However, she says there were a few changes: Her antenna cover was gone, as were the vehicle’s plates.

One user who commented on the clip suggested that she get the car thoroughly assessed by a mechanic.

“Check all your fluids because you never know what they did to it,” they wrote.

Motor1 has reached out to Mem via TikTok direct message for further information on her sales experience. We’ll update this if she responds.