Legal Question in Credit and Debt Law in New York

auto loans

If you buy a vehicle and tell the company to come get it because you cant afford it any longer, how can they charge you for the balance if you no longer have the vehicle? and if you must still pay the balance due after the vehicle has been taken back should they have to return the vehicle to me if I still have to pay for it?


Asked on 8/03/05, 5:41 pm

1 Answer from Attorneys
Guy Lewit Guy Mitchell Lewit, Esq.

Re: auto loans

Sounds strange doesn't it? But that's what happens. See, you signed an agreement that says you would pay a certain amount of money for the car for a certain period of time. They gave you the car...now you are supposed to pay them all the money. If you cannot afford it, you are free to call them to pick up the vehicle...but what about the money you agreed to pay them? They are forced to sell the car at auction and after crediting you with the value they got for the car, less the expense of fixing/selling it, and pursue you for the amount you agreed to pay them, less what they netted on the sale of the car. You can't have it both ways. Either keep the car and pay for it or let them have the car back and pay the difference after they sell it. Usually, it ends up MORE expensive to return the car...

Good luck

Read more
Answered on 8/04/05, 4:41 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in New York