Dealer claims loan was not approved vehicle is wrecked, not sure what to do?

Ok, so I had a 2014 Ford Fusion for about 6 months, we found out another baby was on the way so we traded it in for a 2013 Chrysler Town&Country. We had the van for 13 days and got into an accident that totaled the vehicle. Had full coverage insurance on the vehicle, that part is not an issue, but my insurance company called the Lien Holder to arrange payment and they said there was no loan in my name. So several phone calls later, I found out that the dealer claims the loan was never approved and because of this they did not pay off my trade in which is now 2 payments behind and they are threatening collections. The dealer says they need me to come in to determine what needs to be done and won't talk on the phone, the insurance company just wants to know who to pay. And I don't know what to do.

You need a lawyer. Otherwise this dealer is going to try to screw you over.

Technically, the car was never yours since you were never financed. It still belongs to the dealer. Therefore, technically, the insurance money should go to the dealer. If the insurance money doesn't fully cover the cost of the vehicle, that's the dealer's problem, not yours. DO NOT sign anything or believe anything the dealer tells you that will attempt to make you think you owe him for the difference between insurance payoff and value of the vehicle.

This is a perfect example of why you don't let a dealer arrange financing for you and you don't take delivery until financing is approved.
Unfortunately, because of the accident, the dealership has you over a barrel. If you had negative equity, you didn't have GAP insurance and the van is totaled, then you are going to have to come up with some significant funds to get out of this mess.

You need to continue to make payments on the Fusion until someone pays off the loan. That contract is between that finance company and you. You have to see it through until it's paid off and are responsible for past-due payments until it is.

Sounds like the dealer is pulling a fast one. I'd suggest you get legal advice.

Who have you been paying for the last 6 months? See those people.

You and the claims adjuster have to have a meeting with the manager, or better still, the owner of the dealership.

You don't own the van, the dealer does. The insurance company is going to pay the dealer and you get to pay the balance due. You are responsible for the difference between what the insurance company paid out and what the value of the van is.

I don't know what state your in: In california if for whatever reason the dealer is unable to get you financed exactly as your contract is written (your payment amount, ect)
Then the dealer has 10 business days to send you a certified letter stating he could not get you financed as the contract was written. If the dealer did not send you such a notice then the dealer has to honor the contract--if the car was still driving they would have to let you make payments to them for example.

Sounds like the dealer has dropped the ball big time here.

I would go and see them, and try and work out how big of a mess it is, and how they plan to clean things up. DO NOT sign anything at this time. Take it home, read it all, talk to a lawyer if you need to etc.

Now the good part of this is that you paid your insurance, the ins co want to give money to "someone" to pay for the vehicle. I suspect the dealer has actually been financing your vehicle, and it probably still legally belongs to them (at least partly)

Hopefully you can work out a situation where some of the insurance goes to the dealer and all the outstanding $$ there get cleared, and you are left with a deposit on a new vehicle (depending on how much the ins co actually pay out)

This is where you may want legal advice to work out what's fair.

What paperwork do you have that shows your ownership of the T&C? The claim that your loan wasn't approved sounds very suspicious, because if it weren't, there's no way that they would have let you drive the T&C off of their lot, and license and insure it as your vehicle.

Yeah, this may need a lawyer. At the kinds of prices those cars cost, you're way over the limits for Small Claims court.

Don't understand why they won't discuss it over the phone.

Contact your state attorney general and dealer regulatory agency. The dealer does not have clean hands here

You need to contact a lawyer right away.

Time for larry h parker!