Join Date: Dec 2062
Location: Suburbia, Texas
Re: a question about trade in
[quote author=vitaminC link=topic=171549.msg3633865#msg3633865 date=1272317830]
just have this thought and would like to know what to do if a dealer does not pay off your existing loan when you trade your car in for a new one. It is not something happening but I just would like to learn something maybe useful when I get my next car. BTW, I am in New Jersey.
Say if the dealer has aggreed in writing that they are going to pay off your existing loan but you find out later they are not doing so, is there any way to make the dealer do it or the only way is going to court?
Well, you'd probably have to go to court if they refuse to transmit the funds. You'd also want to make sure to get the lien holder involved (i.e. contact them and tell them the story, they can apply legal pressure on the dealer to collect funds, too).
I've only had this happen once and it was an honest oversight. Took them a month to pay it off, which of course was long enough for it to go as a missed payment on my credit report. 6 months of disputes and I finally cleared it, though.