being sent to collections?

Question

I bought a vehicle alomost a year ago when I found out my insurance was going to go up from 2000/mth to 5000/mth I could not afford the car. The dealer would not terminate the sale and I was stuc with the vehicle. I ask for it to be repossessed they did not do so for 6 months. The sold the vehicle in an auction for 8000....leaving me owing with 11000. When i contacted them three months later, I was told that I could not be held legally responsible but if i wanted to repay hat would be greatly appreciated. 6 months later They are sending me to collections for 11000. And told me thgey never had such a conversation with me.....What can I do to get out of this? Has anyone delt with this before?

Answer 1

Unless you have in writing that they were not going to hold you liable for the remaining balance, you have no case. The fact you failed to investigate the cost of insurance before you signed the deal to buy the care makes no difference. You borrowed the money and promised to pay. You failed to pay. They have the right to repossess the car, sell it and charge you the difference and the cost of the repossessing and of executing the sale.

Answer 2

Well you made a horrible mistake by granting repossession. next time, seek another lender to buy the loan and extend the note but on lower payments per month.
If insurance was a problem and $2k-5K a month???
Where you a risk driver? DUI, Drug convictions???? Avg insurance is 150.00 full coverage a month.

Anyhow, about collections.
You are liable 100% for the debt.
Anyone tells you that you aren't liable should never, ever, give financial advice. Also, the insurance is not your problem, because if you had the money for the car, you wouldn't be in this position.
From experience and financial counseling, it sounds like you are young and inexperienced in money matters, but you have a taste for fun and fun costs money! Money that should be for your car, you spent away!
Nevertheless, anytime you sign your name in a contract, you are legally bound to the terms of that contract. Since you could not pay the full agreed price of the car, they sold it at auction and the difference in the purchase price and the auctioned price, is what you are liable for.
You can work out a settlement plan or make small payments but if you have insurance for 2k a month and money is an issue. Sounds to me like a tough lesson learned and the outcome is that your credit is ruined for 10 years and believe me, it DOES affect you!
I would contact a CCC service in your area and have them teach you how to repay your debts by not living beyond your means.

Answer 3

$24,000-$60,000 per year for insurance? I dont care how bad your driving record is.... that is impossible.... Are you sure it's not $2k-$5k for 6 or 12 months?

At any rate, you are legally responsible for that negative equity. You should have brought the car back to the dealer to prevent legal fees.

If you had discussions with them, but have nothing in writing, then the conversation never happened. Always get stuff in writing.

I would call them and try to get them to settle for $5,000... which they will probably do. Get an agreement in writing before you pay them anything. DO NOT give them any bank or credit card info.

You cant "get out of it" you have to pay them, or they will sue you.

Answer 4

You are paying 2,000 dollars a month for car insurance and it went up to 5,000 a month.I do not believe this at all.You should have checked with your insurance company and found out what your insurance would have been before signing any contract. They have the right to file the remaining amount since you drove it for 6 month.Depending on the state they can garnish your wages .Get a Lawyer.

Answer 5

I'm afraid that you won't be able to get out of it. All this is in the fine print of all those papers you sign when buying a big ticket item.
I wish I had better news.