How do you get released from a contract for buying a used car?

Question

A friend bought a 1999 Saturn SL2 for $9K and Kelly Blue Book says it is worth $5K in excellent condition. The place advertises help establishing credit and help getting a car. The interest rate is 22% and the total will be over 15K after payments for 3 1/2 years. She just bought the car Saturday and Wednesday tried to take it back. They video taped her signing the contract! They said if she brought back the car if would go on her credit record and they would garnish her wages. She makes $7.78 per hour. How can she get out of this? Can she get out of this?

Answer 1

There is "NO" right of rescission, 3 days or returns in the car business, so don't let people's speculation confuse you. Your friend made a decision on impulse and has now had time to think about what she did. That's okay, this is a lesson learned. However, there are some positive things to this. One, this will help establish positive credit because she has either had credit problems or limited credit for the rate to be that high. Second, this is a short term loan so she can trade it reasonably after a year and a half to two years. Finally, being a short term loan along with established or re-established credit, she should get a better rate and term on the next one.
Hope this helps!

Answer 2

Actually you were not APPROVED for the loan. You filled out the paperwork and if you read thru all the fine print, you will find that the loan is contingent upon approval by the financial institution. It is very common for car dealers to allow you to take the vehicle while the loan paperwork is being processed. Many dealers will also set you up with financing that your credit just won't qualify and will call you back to sign new paperwork -- usually wanting more cash down and a higher interest rate. Take the car back. You will likely be charged milage on the vehicle, but the deal is off.

Answer 3

No. It's a done deal and if she 'gives' the car back they will sue her (and win) for the difference she owes on the contract and her credit report will show a repo for seven years. How is it that so many people are stupid right up to the point of driving a car off the lot and THEN realize they made a mistake?

Answer 4

She DID sign a contract, and no one held a gun to her head to force her to. She got ripped off because she didn't do her homework, and unfortunately she's stuck with the car. They're correct about garnishing wages...they'll auction the car off and she'll be on the hook for the (substantial) balance.
Maybe she could get a better paying job to help make the payments.

Answer 5

well as for her credit it sounds like it is already bad as for garnish her wages have her check a lawyer (most of them will talk to you free the first time)to find out if she can get out of it they will know all the laws for that state the laws very from state to state... with the money she makes she should have never tried to buy a car with that high of a price anyway..

Answer 6

Sounds like a case of let the buyer beware. Check the contract to see if there is an escape clause, otherwise she is stuck with the vehicle

Answer 7

This is punishment for not doing her research. If people want to jump into buying a used car without having any clue what it's worth, they deserve to get screwed over.

Answer 8

most places that help you establish credit will have these higher interest rates. look at the contract and see if there is a loop hole if there is not ,, he returning the car will harm her credit

Answer 9

I'm not sure but there is a certain amount of time you have to back out of a contract. I think it is three days. I'm afraid she is about to learn an expensive lesson. I hope someone has a good idea for her. . .