In Dec.04, my husband and I bought a used 2002 Honda Accord LX in his name from a local Toyota dealership. He financed a loan in his name and bought the car for $11,000 total, with monthly payments of $400 for 4 years. Our credit is obviously not the greatest. Long story short the finance company has jerked us around since the first month, and pretty much screwed us. We've literally been on the phone every month with them arguing over our loan. As of today, the car has 87,000 miles on it, the paint from the drivers side door and over the front of the tire has completely peeled off and the car looks dreadful. Blue Book would probably place the value of the car (due to cosmetics) at around $6,000. We think the car was in a wreck previous to our purchasing it. So, as of today, it's been almost three years since we bought the car, and we currently owe $10,000 on it! It has been a complete money pit, and I am at my wit's end ready to drive it off a cliff. What options do we have?
2007-11-14 02:38:20 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
Basically, yes, we bought the car for $11K and still owe $10K, we have made all of our monthly payments. The problem with the finance company started the first month we had the car, there was a major mix-up with our insurance coverage and the Finance company was charging us for insurance every month.Every month we ended up talking to someone different at the finance company, and every month kept being told "Oh don't worry about that, you don't owe that".Well, about a year ago, the finance company basically told us "nevermind, you were told wrong you owe all this extra money, plus late fees, plus interest" Our payments kept getting higher and higher, with penalties and interest. We've hardly been able to keep up, and have fallen behind on payments before, but have always brought it up to date.
2007-11-14 03:00:29 · update #1
I'm confused, how do you still owe 10K on a car that you have owned for 3 years and purchased for 11K?
2007-11-14 02:44:14 · answer #1 · answered by redwine 6 · 0⤊ 0⤋
Let me guess Wells Fargo, they tried to pull the insurance thing on my son, who's car I co-signed for and put under my insurance. They tried to tell him that his insurance was not enough and wanted to charge him $260 a month for insurance. Well dad made a few phone calls, and straightened it out. Why after 4 years you still owe 10K is the obvious insurance fraud. Heres who you call, or who's site you visit on the internet. First your congressman, write out the whole complaint esp about the insurance, he will take it to the Attorney Generals office, who will file a complaint. Next the FTC, the trade commission, then the office of the Comptroller of the currency, the people who regulate the banking industry. The last one you will have to google yourself, but it is the government industry that regulates the insurance industry. Then just for S & G file a complaint with the Better Business Bereua. I believe that within a week you will get calls and letters of apology and find out you owe far less than you think. Do not let this go you are being ripped off.
2007-11-15 10:50:33 · answer #2 · answered by Pengy 7 · 0⤊ 0⤋
Your screwed! Either keep paying it off or sell it and cut the loss. What I'd be looking at is why you still owe $10,000 after paying on the vehicle for 3 years. You've either missed payments along the way and your interest rate has skyrocketed, or you simply took the loan with a very high interest rate. It sounds to me that you have simply been paying the interest and not the principle on the loan. I'd strongly recommend a re-finance or sell the car and take your losses.
2007-11-14 02:47:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Auto finance is what I do for a living and you are pretty close on the value of your car.
Being $4,000.00 upside down is not that bad believe it or not, I have helped people that were much more upside down then that before.
It really is going to depend on how the lender reported your husband payment history, if they reported it good, then you should have no problem getting approved, if on the other hand they did not, it will take some money down to get out of this loan.
I would suggest finding a dealer that advertises Special Finance and go talk to the manager, they should be able to help you.
As far as the vehicle being in a wreck, you have been in the car much to long to pursue legal action against the dealer, you are stuck with it.
2007-11-14 02:47:32 · answer #4 · answered by ? 7 · 2⤊ 0⤋
You say the finance company has screwed you. How? You signed the contract.
The problems with the car are a separate issue. You may well have been sold a lemon, but that is the dealer's responsibility, not the lender's. Run the vehicle's VIN through
carfax.com to see if an adverse history shows. Then you may have a case.
2007-11-14 02:46:35 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Sell the car. Pay off the finance company. Eat the loss. Start over.
I know that will hurt in the short run, but in the long run, you will be better off the sooner you get this mess behind you.
2007-11-14 04:49:25 · answer #6 · answered by Ted 7 · 0⤊ 0⤋
Oh, sweetie, that sucks! Did you check Carfax for the car's history? I'm sorry I don't have a solution for you, but I'll ask around.
2007-11-14 02:46:12 · answer #7 · answered by Ginger R 6 · 0⤊ 0⤋