bought used car, it got repo. finance co.taking me to court. car wasnt worth what it finance for. wat do i do?

Question

dealer sold me the car for more than it was worth.
finance paid off to dealer. now they want me to pay the difference the car sold for at auction after repo.

Answer 1

If you must go to court and defend yourself.. you can do this as a response to their claim.. file an answer to the court as a motion to dismiss.. use this argument to support your motion.. once the car was repossesed you had no control of how it was sold. If the finance company chose to sell it at auction then it was at their risk of not receiving enough to pay off the note.. it was their option to either offer for resell at retail or take their chances of losing money at an auction.. they made the decision and they must suffer the the loss... of course they will present the contract that you signed which probably contains a clause that if they are forced to reposess the automobile and you are still liable for the difference between what they sell it for and what is owed on it... If the clause is there and you signed it, then you agreed to the condition.. however.. I doubt that the contract contains the language that specifically prohibits you from the opportunity to resell it and use the proceeds to pay off the note.. if you were denied the right to resell then you have an argument for dismissal.. you were not consulted and therefore were denied the right of ownership... had they given you the option to resell then you would have done so.. there is an area in the law that gives you right of ownership.. the right of ownership doesn't end simply because you were behind in your payments.. go put up a fight.. but don't bring up the point about it not being worth what you paid.. the Judge won't care... if you don't go to court.. they will get a judgement against you.. the best thing you can do is try to litigate the balance down to a point where all interest is knocked off and you can sign a note to pay the balance in installments.. good luck

Answer 2

I am sorry to say this, but IMHO, you are up [beep] creek without a paddle.

If the dealer sold the car to you for more than its worth, that's YOUR problem. You signed the contract. You did not do enough research to arrive at a fair price, you did not negotiate properly. Unless you can prove the dealer had tricked you and misrepresented the product, you have no recourse.

If the car was repo'ed and you don't pay to get it back, then you are truly [beep]ed. Not only do you lose ALL the payments you've made on it, you will have to pay for the difference the car sold for vs. how much you still owe, which can be a significant amount. ADD on top of that, the cost of recovery by repo and various paperwork, penalty, interest, and such. And I'm guessing that they went to court and got a judgment against you, right? You may even end up pay the court costs.

You need to talk to a financial advisor, as so far, based on what you told us, they did everything by the book.

IMHO, your only "out" is declare bankruptcy, but I'm not a financial advisor and I don't know how that would affect the rest of your life. I know it'll just about destroy your credit for the near future. Again, contact a professional financial advisor for advice.

Answer 3

There may be different laws in your state, but in most areas, you wouldn't be obligated to this deal. That dealer took a risk in "rolling the deal" or a "spot delivery" as they call it, that's when they are so afraid that if you leave without the car, you won't be back. That on it's own should lead you to question if you got a good deal or not, they may even have some extra garbage in your terms that you don't necessarily need. I'd take your cash purchase price, and compare it at another dealership or 2 to make sure it's a good deal, and check your bank's interest rate to see if you qualify for a better rate.... also keep in mind that a dealer can bump your rate up higher for profit, called a finance reserve.... he may even just be trying to get greedy.

Answer 4

That's called being upside down on your loan, you chose to pay more than the car's value. Since the car was repo'd, and sold at auction, the amount the car sold for will be applied to your loan. You are responsible for the balance of the loan, even though you do not have the car anymore. Insurance details must be taken care of, as well. Interest will accrue, just as before. There really has been no change in the contract agreement rules for you. You just don't have the car anymore.

Answer 5

More than it was worth according to WHO? Is this just a "my friend told me it was only worth $50 not the $3,000 I paid" or is it based on good solid research, like checking local auctions, local retail selling prices for the same vehicle or just going to edmunds.com or kbb.com?

Lots of people who think they got (beep)ed by a dealer are using that excuse to rationalize that they just couldn't keep up with the bills they brought upon themselves.

You signed for it, you used it, you didn't pay for it. It's that simple.

Bankruptcy will have you not being able to finance chewing gum for at least 7 years. To save your own A__, pay up and at least keep a good credit rating for yourself.

Answer 6

You have two choices. Bankruptcy or pay up. You signed a contract. If you think the dealer ripped you off, why did you sign?

Answer 7

It is sad but a lot of people get taken when they buy used cars/trucks. You might have to pay for this one, you can try to work something out in payment terms, In the future get a pro mechanic to check it out. Good Luck and GOD Bless

Answer 8

you get to pay the difference now. that's just the way it works. and by the way, a car (or any other good) is only worth what someone is willing to pay.

Answer 9

I think u should contact ur attourney generals office? In NY & RI they have "Lemon laws" to protect against this. There are all sort of fine print but: mainly if u buy from a dealer and car has so many repairs in (30days) so many days they must buy it back!!

Answer 10

i own a shop and you had a choice not to buy this,so really its not the dealers fault,they will say you should have tried to pay for it,so you,ll probably loose on this one,because they will say you had a choice not to buy it,good luck hope this helps.