Legal Question in Credit and Debt Law in Pennsylvania

Dewayne,

This is a consumer finance issue, not really a credit, debt and collection issue.

This is after the fact, but you need to do your homework BEFORE you buy a car. The dealer just sells cars and they will promise you the sun, moon and stars to get you to buy a car. They handle things for the bank, but it is the bank that sets the rate based on your credit application, not the car dealership. Some dealers do get some good deals, but it depends on your credit. The fact that you have a high rate tells me that: (1) you have bad credit or have not established credit yet; or (2) you are trying to buy too much car in that the car is priced too high.

The problem is that you are now stuck. You can do a few things. Are you a member of a credit union? Is the car new or used? Next time line up your financing first before you go car shopping. However, if you are a credit union member, see if the credit union will give you a better rate and re-fi the car note. Also try a bank if you or your family have a relatiohship with a lender.

You can try going back to the dealer who sold you the car and see if they will let you trade the car for a much cheaper make/model which will bring your car note down. There is no requirement that they do that and you will have to be nice. If you and everyone in your family have bought your cars there, they may do so out of good customer service (you may have to remind them).

If that doesn't work, you can trade the car in at another dealership. Problem is that the new dealer is not likely to give you what you paid for the car. In that case, they will be more than happy to sell you a new car, but any excess that you still owe on the old car will be rolled into the new loan. You will not be able to afford as much car or as nice a car and you will soon be driving a car that is worth less than what you owe.

And do not think you can just give the car back. Deals are final; the car lender has approved you, albeit at a high interest rate. and if you give the car back, it will be treated like a reposession. It will be on your credit and, even worse, the finance company will hold you liable for the balance owed on the car and you will be stuck paying for a car that you no longer have. So do not do it.

I bet the dealer "spotted" you a car and let you drive off the lot in it. You should never do that until you find out what the rate is going to be first. That way, when the rate comes back, you can walk away and say no.

If neither re-financing or trades will work, then you are going to be stuck unless you can find some fraud somewhere. You do not give me enough information, but if you think that maybe there is something, then try contacting the attorney general. If there is indeed fraud, then you may be able to use this as leverage to get the dealer to take the car back and return any down payment or trade-into you. In that case, give the car back, take your money and RUN. Then go do your homework like I said and get something better.