Consumer complaint received 2022-06-09
Company: Carvana Group, LLC
State: TX
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Getting the loan

Complaint:
Advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that's not true. For example, a lease advertisement for an automobile that promotes " {$0.00} Down '' may be misleading and in this situation I felt I was misled in the transaction with Carvana after you even advertised that transparency in the car-buying process and in earning our customers ' trust every step of the way. We don't engage in unfair, deceptive or abusive acts in advertising or any other part of our Online car-buying process. I just hate that you guy were misrepresenting the cost of purchasing a vehicle ; by advertising that consumers could purchase vehicles at specific low prices when, in fact, the price of the car increased by {$5800.00} with the cash downpayment and if that was a downpayment I thought it would make the car price go decrease but instead you made it higher then what the price of the vehicle was. 

As stated in the law Cash payment. If the consumer makes a cash payment, creditors may, at their option, disclose the entire cash payment as the downpayment, or apply the cash payment first to any excess lien amount and disclose any remaining cash as the downpayment. In the above example : A. If the downpayment disclosed is equal to the cash payment, the {$2000.00} deficit must be reflected as an additional amount financed under 1026.18 ( bX2 ). 
B. If the consumer provides {$1500.00} in cash ( which does not extinguish the {$2000.00} deficit ), the creditor may disclose a downpayment of {$1500.00} or of {$0.00}. 

No cash payment. In a credit sale, the " downpayment '' may only be used to reduce the cash price. For example, when a trade-in is used as the downpayment and the existing lien on an automobile to be traded in exceeds the value of the automobile, creditors must disclose a zero on the downpayment line rather than a negative number. To illustrate, assume a consumer owes {$10000.00} on an existing automobile loan and that the trade-in value of the automobile is only {$8000.00}, leaving a {$2000.00} deficit. The creditor should disclose a downpayment of {$0.00}, not - {$2000.00}. 

Then not only that you didnt address the problem in my last complaint about the XXXX  instead you sent me a template and even your executive resolutions representative XXXX said yeah it sound like a template and thats crazy they would do that and not only that he agreed that the downpayment was to high and pretty odd and doesnt line up with the algorithm because Carvana normally starts from monthly payment so he was confused on how that would even happen so I have asked for your response be accompanied by a sworn affidavit or under penalty of perjury because of questions I have and me receiving template responses. I need to act in good faith as I hear from you to make an informed decision about your claim that I that you have not committed the alleged allegations. I am open to communicating with you for this purpose. In order to make sure that I am not put at any disadvantage I had to file this complaint Thanks for your cooperation

Company response to consumer: Closed with explanation