What can I do to get out of this program?

Question

bought a 1996 saturn sc. paying 300 a month for it. it is because of a program with the dealership for people with bad credit. (mines is horrible) the deal is that I keep my payments on time for 18 months, go back to dealership with improved credit, get a newer, nicer car with lower payments. the problem is is that it is getting harder for me to pay 300 a month (trying to get my own place), AND the dealership has done me wrong in the past when it came to warrantees and guarantees. they were not willing to fix a serious brake problem with the car because it cost too much. even though it was covered. anyway, i want out of this deal. what are my options? i have no idea how the car business works,so i don't have a clue about what i am able to do. nothing? something? please, if someone knows anything, or if you even just have advice...

I have checked my credit reports, but I don't have my credit score. I have been stupid by not checking my score at the begining of this deal, and comparing it to what I have now. However, on the reports, it shows this particular payment, and it is always on time. I am not sure if they are a buy here pay here dealership or not. So, with the knowledge that they are indeed posting to the credit bureaus, does that change any of your opinions and advice?

Also, my 18 months will be up in October of this year. Fine time to ask how to get out, huh?

Answer 1

I think the original program was a made up by the dealership. What they did was sell you a car with a high interest rate...that's it. Of course your credit will be better if you make 18 months of payments. But it could also be worse if you have other debt that goes out of control. I'm sure you can just sell the car. However, be sure that you are not in a negative equity situation.

Answer 2

Read your contract. If you bought the car at a "buy here pay here" lot chances are good (about 99%) that they are NOT reporting to any credit buearu. Which means that you ARE NOT improving your credit. Oh sure, they may tell you that, but unless the loan (did you even get a loan?) was reported to one of the 3 major credit buearus, you're not getting any marks (good or bad) for the loan. And, if that's the case, and you already had poopy credit, why don't you just let them repo the car? Can't hurt anything credit-wise b/c they're not reporting anything.

The put you on a program to keep you from taking your business elsewhere (to a legit dealer) later on. If they still hold the title of the vehicle just dump it off to them and try and get a LOAN for a car from a credit union or bank.

Many reputable dealerships have lenders that will approve financing for ugly credit situations. And, those lenders WILL report your loan and payment history to the credit buearus. This is the ONLY way that you'll get credit for making payments on your car and thus improving your credit score.

See, the other place (the one you're using now) told you that in 18 months you could come back and get a newer, better car at a lower interest rate. That's b/c they'll be the ones lending you the car. So if you make your payments to them on time you'll develop a good history WITH THAT STORE ONLY and that's what they want. You'll still have crappy credit b/c they're not reporting your good payments. So if you were to try and buy a car at another place, you'd likely run into a "worse" deal than what they're offering.

Run, fast, from the shady dealerships. Get yourself to a brand-name store. Pray that you can get a lender to finance you. And never-ever-ever give any money to a "buy here pay here" place.

Answer 3

Well, the real question is have you improved your credit since you made this purchase? The "program" as you have stated sounds suspiciously like a "buy here-pay here" arrangement. If that is the case, it may have not done anything to improve your credit standing. If thats the case, you may be stuck. Find out what you owe on the remaining contract of the vehicle, If the value of the car exceeds the payoff balance I would speak to your credit unioun or local bank and see if they can arrange a better loan for you to trade off the car. Be honest with the loan officers at the bank. If you have improved your credit standing since this purchase they may be willing to lend you money at a better rate to get a difernt vehicle with a lower payment or even refinance your currnt vehicle for a lower payment with a better interest rate. Steer clear of dealership lending programs. They usually are there to increase dealer profit.

Answer 4

there ought to be another Saturn dealer in a neighboring town. You may want to talk to them first - about the repairs, and second - about your options with the program.

Answer 5

Personally I would find my paperwork and see exactly what this "program" entails. I've never heard of anything like it so it's probably something they made up.