Florida Man Forced to Back Out of Buying a House Because a Car Dealer Failed to Pay Off His Trade-in
Buying a new car is supposed to feel like a fresh start. For one Florida man, it turned into a financial hit that slammed the brakes on a new chapter of his life. A dealership’s failure to follow a basic state law didn’t just cost him peace of mind. It wrecked his credit and forced him to abandon plans to buy a home.
Oliver Mendoza moved from Spain to Orlando just over a year ago to coach soccer. In April, he traded in his Tesla Model Y at Benji Auto Sales on Orange Blossom Trail and bought another vehicle.
Under Florida law, dealerships must pay off a trade-in loan within 10 business days
But months later, Mendoza says the dealership still hadn’t done it.
He called repeatedly and got nowhere. The unpaid loan racked up four missed payments, and his bank held him responsible.
Mendoza’s once-healthy credit score in the mid-700s nosedived to 565
A repossession notice followed. And the house he was preparing to buy? That deal collapsed, too.
Unfortunately, Mendoza’s story isn’t unique. Benji Auto Sales has been flagged before by WFTV’s consumer team, Action 9, for failing to pay off trade-ins on time.
Other customers, including Cody Alexander and Gordon Hartz, have reported the same problem. Both described the financial squeeze of suddenly juggling two car payments on vehicles they no longer owned.
When Action 9 showed up at the dealership to get answers for Mendoza, the gates were locked and the lot was empty.
Today, the location appears shut down
A friend eventually pressured Benji Auto Sales into sending a payoff check for Mendoza’s loan…but he says the check bounced.
Even if it clears eventually, the credit damage has already been done.
Legal experts say customers in Mendoza’s position should contact the Florida Department of Highway Safety and Motor Vehicles
The agency can fine or even suspend a dealership’s license. Consumers can also sue for breach of contract or unfair business practices. And as Orlando attorney Cynthia Conlin pointed out, failing to pay off a trade-in loan certainly qualifies as unfair.
Until a trade-in’s loan is paid, the borrower remains on the hook
And their credit score pays the price if the payments stop. It’s a harsh reality many buyers don’t realize when they hand over the keys to their trade-in.
Mendoza says he expected businesses in the U.S. to do the right thing. Instead, a dealership’s broken promise derailed his plans for homeownership. His story is a reminder to research a dealer’s history, keep every document, and verify that your trade-in loan is actually paid off. Because in the car business, a failure on their end can total your financial future.
