Slim asked:
I bought a car last year. Since then, it’s been towed 3 times to replace a coil pack, fuel pump, and transmission problems. I got sick of it breaking down,putting so much money into it so I just bought a new car and don’t want to pay for a car that I’m no longer driving. I called the dealer, explained the situation, and asked if I could return the car. He said yes. It was towed away today. Am I free and clear? Do I owe anything? Is this considered a repo? Will this be on my credit report?
Well thanks for the input guys..I got my answer from the dealer. I called and asked him what was going to happen..The balance on the car was $1800. He said that I could either pay a lump sum of $600 or continue making the payments til I reach $800. So I will pay the $800 over four months, which is fine with me..Thats way better than $1800 and it will not be a repo or on my credit report.
Corey
I bought a car last year. Since then, it’s been towed 3 times to replace a coil pack, fuel pump, and transmission problems. I got sick of it breaking down,putting so much money into it so I just bought a new car and don’t want to pay for a car that I’m no longer driving. I called the dealer, explained the situation, and asked if I could return the car. He said yes. It was towed away today. Am I free and clear? Do I owe anything? Is this considered a repo? Will this be on my credit report?
Well thanks for the input guys..I got my answer from the dealer. I called and asked him what was going to happen..The balance on the car was $1800. He said that I could either pay a lump sum of $600 or continue making the payments til I reach $800. So I will pay the $800 over four months, which is fine with me..Thats way better than $1800 and it will not be a repo or on my credit report.
Corey
Cindy
four very good questions but you should have asked those questions BEFORE he took the car
Comment by Paul — August 11, 2010 @ 7:28 pm
Alvin
Check your credit report next month. Don’t be surprised when you see a repo listed.
Comment by mccoyblues — August 13, 2010 @ 5:34 am
Craig
You will own the balance after they figure it out plus any and all fees that will be associated with this vehicle and it will be on your credit report as a voluntary repossession……..
Comment by UCANTCME — August 14, 2010 @ 10:06 am
June
If you have decent credit, why would you ever buy from a “buy here pay here” dealer. Their target market are D rated borrowers and they generally charge the maximum interest allowed by law. This can exceed 30% APR.
Since they are selling to people who generally can’t buy a car anywhere else, the quality of the cars is not important if it will run long enough to get off the lot.
If you didn’t finish paying for the car, it is probably considered a repo. If the vehicle was no longer running and the dealer can show that the repo vehicle value did not cover his remaining investment & expense, the dealer might be able to file a small claims suit against you. This is unlikely because they repo vehicles all the time. It will be on your credit report if the dealer chooses to report it.
You needed to ask these questions before you told the dealer to pick up the car. You probably could have obtained a release from the dealer for your outstanding balance and it would not be a repo – basically selling the car back to the dealer for $1 to make it a legal transaction.
If this was a very recent event, you may want to go back to the dealer and try to get a release – probably will cost you some money now. This would save you from the credit reporting situation.
Comment by Used Car Guru — August 15, 2010 @ 11:35 pm
Alvin
Don’t be surprised if you get a bill in the mail for the remaining balance on the loan for the car they took back. Those kind of dealerships would not take back any car out of the kindness of their hearts. They will probably fix it up a little and resell it. You will be stuck paying off a loan for a car you no longer have. Giving it back to them was dumb..it’s basically a repo, and it will probably be on your credit report soon enough.
Sounds pretty good…but I would get all of that in writing just to be safe.
Comment by sukbunny — August 18, 2010 @ 4:35 pm
Jason
Guess again! You didn’t satisfy the original terms of the agreement. The dealer can AND WILL show a voluntary repo and possibly list it as settling for less than original amount owed because that’s EXACTLY what happened.
You’re not in the clear! Check your credit in 2 months and see if I’m right.
Comment by Me M — August 19, 2010 @ 3:16 am
Jamie
Better get that “amended”agreement in writing.
Comment by nick@night — August 20, 2010 @ 9:24 pm