why can a company get away with selling the automobile for a third of what it is worth and make the owner pay the balance
2007-06-11 09:29:10 · 5 answers · asked by stoneystonney 1 in Cars & Transportation ➔ Buying & Selling
If you finance with a bank, they must auction the car at a public auction( this can be limited to dealers) there is no other fair way to do it, otherwise you should of just made the payments.
But if you finance with a buy-here pay-here lot or a credit union, they are not under the same laws as banks.
10 yrs in auto biz
2007-06-11 10:18:49 · answer #1 · answered by misty m 4 · 0⤊ 0⤋
The ideal thing is for the car buyer to pay the loan as promised. When that fails, there is a lot of dollar damage for all concerned. You are part of the problem. They will sell the car for less than what you owe and you will owe the unpaid balance, plenty ---- notes and be on walk.
They have the law on their side, you signed a contract as an adult. Now they are treating you as one.
Some blame should go to the people that sold you the car. They don't care if the car is repossessed the next week, they made their money. You made the big mistake getting in over your head. By the way, the dealer is the only party that made on the deal. In fact they are still making the same deal with new venerable owners as I write and you pay.
2007-06-15 06:54:04 · answer #2 · answered by radar 4 · 0⤊ 0⤋
Repossed vehicles are sold at auction. The finance company is not getting away with anything by selling to the highest bidder. Buyers have to buy the vehicle "as is." So they cannot return it if something is wrong with it.
The former owner is still responsible for paying off the loan. It's in the contract. Frequently a large part of what is owed amounts to interest and penalty late fees.
2007-06-11 09:33:49 · answer #3 · answered by regerugged 7 · 0⤊ 0⤋
They are responsible for getting a market rate for the vehicle, auctions are the best place to get market rate. They have to buy low and sell high. If they sold the car for your balance, no one would buy it.
If you are concerned about this you should have tried to sell it yourself before the reposession (assuming this is about you) and then you would have gotten a better rate because you would have been the one taking the profits.
They can hold you to it because... well, you signed the contract saying you would pay back the money.
2007-06-11 09:34:10 · answer #4 · answered by Holmes C 2 · 0⤊ 0⤋
They are not getting away with anything, it's really the only fair way to get rid of the car.
Understand, that this is the last thing the bank wants to do, the bank loses money as well. To avoid all of this, the moral of the story, is to pay your bills.
2007-06-11 10:43:30 · answer #5 · answered by jay 7 · 0⤊ 0⤋