Gap coverage is sold by dealers, and the premium is factored into the loan. You probably should talk to an attorney. Not sure if it's breach of contract, but it might be negligence.

You need to contact the dealership where you purchased the coverage, and have your paperwork ready to show as proof. It may have been human error, but if something were to happen to cause you to need the coverage, logic says that the dealership should assume responsibility.

And, sorry but the first answer is incorrect, GAP can be purchased through the seller or your insurance company.

How long have you had the car? This could be a blessing in disguise. Find out how much you owe on the car and how much the vehicle is currently worth. If it's worth more than you owe, you don't need gap and by them not sending the money into the GAP company you've saved money - unless they just pocketed the money that was supposed to go to them but that should be easy to figure out.

If you find out they stole the money that was supposed to go to pay for GAP then go to the dealership and ask what's going on. Bring your paperwork and contact the GAP company while you're there if it's not obvious what happened with the money. If it looks like they're up to no good then tell them you're reporting them to the better business bureau and if they don't straighten it out you're taking them to court. Under no circumstances should you let them have the original paperwork that's you're proof. Bring them a copy.

Participation Split - Especially when your Trading Up and still have money owed on Vehicle your Trading In. You would have to do more leg work just dealing with the Bank to make the purchase. Strictly dealing with the Dealer they will take care of all the loop holes and play the numbers game with THEIR Bank.

In subprime lending there usually is no dealer participation the lender sets the rate at the max the state will allow in most cases. What you are talking about is a dealer will get a percentage of two or three points of the financing caharges depending on the bank most times they will get 70%. I dont get it why shouldn't car dealerships get paid for providing a service for you every other business does and we are not out thinking they are all ripping us off. In your case I am sure somebody told you about this and they only have limited knowledge of it.

They weren't required to give her a loaner. But they did out of the goodness of their heart.

The car will be fixed whenever they can. It sometimes takes months to fix it. It's not their fault.

The dealership wants to thank their lucky stars they didn't do it to me! They would not have a car left on their forecourt!!!!! Take someone with you who is large and fierce and tell those awfull people to sort it out once and for all.........If this doen't work you will have to get a solicitor to write them a letter.

Well first tell her to check the Better Business Bureau online to see if the dealer has any complaints against them. If they really are a reputable dealer they should be able to give her a time estimate in which they will have her car finished. If they refuse to give her an estimate or arent wiling to give her money back tell her to contact any attorney it sounds like she may have a case based on the Lemon Law, which is to help protect consumers from getting suckered so to speak by unscruplious car dealers. The attorney should be able to give her advice until then. I am also assuming that she had insurance on this vehicle, so ask her if her policy covered a rental vehicle while hers is in the shop if so tell her to use her policy to pay on a rental vehicle until her's is finished if the dealer is going to have hers fixed in a timely manner.

Any problems with the car's computers should have been disclosed to her when it was sold. This car doesn't sound like it was in a suitable condition to be sold. Go to the link below, ClarkHoward.com. He is a consumer advice guru. scroll down to where you see cars on the list (top left of the big link list) there should be some info. there that will help; I think you can also email, or you can call the 800 number. He has a radio show and he is on the air right now EST.

you dont say how much you paid for the car, you could take them to the small claims court as the goods being the car were not fit for the purpose intended.
in the meantime hang on to the loan car, its not a criminal offence to do that its a civil matter as you do intend to return it. Give the garage a time limit and firmly tell them they get the car when you get yours. good luck

Try the Department of Trade and Industry (DTI)
The Citizens Advice (CAB)
Trading Standards

Go back to the dealer and tell them they have one week to repair your car or give you a full refund plus either your old car or the trade in price. If the dealer refuses then tell him your will drag him through the courts under what is known as 'Lemon Law'
(lemon law definition – Basically, lemon laws allow customer to return a defective car if certain criteria are met. Usually it is very difficult to persuade the manufacturer to accept the lemon law return, and often the issue will end up as a lemon lawsuit. A new car may be returned to the manufacturer for a refund or a replacement if warranty defects are not able to be repaired. Most lemon laws also apply to used cars that are still under full warranty and that meet the mileage and time requirements.).

Not knowing what state she made the purchase all I can tell you is in California there is no cooling off period. If the car is under $40,000 she could have purchased a Cancellation Option Contract. That would give her 72 hours to return the vehicle for a nominal fee.

And also the "Lemon Law" only applies to new car purchases, not used or second hand.

The fact that ur dealer took ur car back for repair and supplied u with a hire car was a true mark of courtesy especially if u had the car for 2 weeks. Dealers are not obliged to supply a car while ur car is in for repair, hence car is called courtesy car and some garages have it writtren on the sides of the cars. Ur garage as u say supplied u with a hire car at their expense, and I think they were good enogh to loan u it for 2 weeks as usually its a max 3 days or so unless its accident repairs which take longer and car is paid by insurance company.

Now the fact that it has taken 2 weeks and still not repaired, tells me that they are having a hell of a job finding the prob or having probs with spares, if the dealer ir reputable which I think they are due to giving u a hire car for 2 weeks and now asking for it back now is not asking much as they have been more than respectful.
they havent refused to repair ur car,it sounds perfectly that the dealer is fullfilling there after sales service.

Now when ur friend was asked to return the hire car and having been told her car wasnt ready yet, I think she blew a fuse with the dealer and caused a right row between them demanding she gets her money back or else. As I said before, the garage supplied her with a hire car for 2 weeks and are still trying to fix the prob, garages like to fix cars asap and get them out of their way , not hang on to them for 2 weeks plus and supply a car at their expense.

Re asking for her money back and the dealer not refunding her the money she paid for the car, well I am no legal guy, but the garage sold car in good faith and hopefully in good mechanical order, but cars can break down even new cars driving out the showroom and Rolls Royces are not exempt from this either. After 3 days a warning light shows up probs with brakes, dealer keeps their promise to take car back for repair and didnt leave her without a car, so the dealer supplies a hire car? or one of their own courtesy cars which one is correct? if the supplied a hire car and for 2 weeks then I would say that the dealer did more than normal customer courtesy service as the dealer had to pay hire fees at their expense, and to be fair on the dealer 2 weeks is more than enough as it would have cost a few pounds for the hire and I say this dealer supplied 100% on the loan car.
2 weeks later they ask for the car back, there is nothing wrong with that because garages are not obliged to provide a vehicle while urs is in for repair, as I said before its a courtesy service and garages cannot have a loan car for every customer who have their cars repaired, usually u may see a sign up in garage that they can supply a courtesy car if car is availableand depending on how long ur car is likely to be off road but unless u hit a prob cars are repaired in max of a week if its major and all goes well.
Now u say her car is still there but she has no car to run around in, well the dealer is still keeping their promise to repair, has ur friend asked the dealer whats keeping the repair so long? I dont think she did but i think dealer told her that they have probs with her car hence the time it is taking, has she ever watche watch dog on tv and seen umpteen car owners of a certain new car make that has spent more time in garage than on road, i think she is lucky to have such a dam good dealer who has done so much so far. If the garage sold a pig in the poke then I would agree 100% with ur friend but I think she has a decent little car with a possible prob that is hard to fix, dont forget its not a window winder handle or daft jobs like that where the dealer can let the car back on road untill spare are available, but we are talking about ur friends cars brakes, and if the dealer let car go knowing its brakes were faulty and ur friend had an accident, do I have to say anymore? The dealer is doing his job correctly by not returning the car untill the brakes are in full working order and safe to use. If the car was faulty day in day out in and out of garage then yes she should get her money back and if a good dealer sold it they would refund or offer another car, but after 3 days and one fault and the level of service the dealer has supplied to ur friend, I think she has no right to any refund as she was sold a car in good and sound order by the dealer but unfortunately a prob arised after 3 days in which dealer has taken car in for repair and supplied a loan car for 2 weeks but for some reason they still have it, but as it is brakes the car legally cannot be released from dealer untill brakes are 100% working.

So ask ur friend to read all this, ask her did she lose her rag when she was asked to return loan car, ask her to be 100% honest, and I think u will find out I am right what I say. If I am right, I suggest that she approaches the dealer with a better frame of mind and apologise for losing it with them and tell them it was a one off incident where she lost it as she had no car, but if the dealer gave it back to her with faulty brakes just bacause she was creating hell then how does she think she would feel if a child ran out in front of her killing her/him all because she flipped her lid wanting her car back and brakes still faulty.

On this site we hear people running this and that garage down because we read stories like this but we must read it again and try and think what the true story is, it makes sense when u try and understand the story. There are cowboys in the trade, these tv programmes that sow rouge garages etc are few and far between but we can end up thinking all garages are the same, but they are not, the truth is there are a lot mor decent garages out there than u think, main dealers can lose their dealership if comlaints keep rolling in

I hope i havent gone on too much, but reading ur friends question I feel that the garage / dealer is dong their job.

Please let me know the outcome.

Jimmy Essex England

PS. I have just had a quick look thru ur answers and a lot of them havent a clue telling u to take the dealer to courtetc. The most sensible answer other than mine was from blissman a person who must have a brain as he said tel the dealer u will give them 7 days ?? i think he said to repair and return my car in full working order or failing that to provide a full refund, now that to me is very sensible and very fair and this would never be felt as a threat to any dealer, and 99 times out of 100 it works.

Well done for a sensible answer and respects to blissman, u know what ur talking about m8, nice one m8.