Posted on 02/01/2009 5:53:51 PM PST by Red in Blue PA
SACRAMENTO, Calif. – The national wave of auto dealership closures has come crashing down on thousands of people who are on the hook for used-car loans that dealers were supposed to absolve.
When a car buyer still owes money on a vehicle he is trading in, the dealer promises to pay off the outstanding loan, then resells the vehicle. But as more dealers go out of business, some are sticking consumers with the bill. Lenders can then go after the previous owner who thought the debt was paid, or repossess the car from the new owner who assumed it came with clear title.
"It's devastating for people when it happens because they have two car payments and they can't afford them," said Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a Sacramento-based nonprofit that lobbies on behalf of vehicle owners. "Their credit is destroyed for no fault of their own because the dealer defaulted."
(Excerpt) Read more at news.yahoo.com ...
Once again, wasn’t this one of the reasons we “rescued” the banks?
Go ask Henry Paulson if you can find him
It does seem like he’s dropped off the face of the planet.
He’s a citizen of the world so he could re-locate anywhere. Maybe he’s viting his money in the Caymans
visiting
0bama’s fault.
You should expect that from car dealers. I worked for a new car dealer—biggest one in that city. He was pure evil in every way. He believed in evil...believed that there was only strength in evil and weakness in good.
The banks weren't rescued.
They were essentially acquired by the fedguv.
The IRS is the collection agent and can hound one into the next generation and beyond.
This is what a majority of your fellow citizens wanted, so you should stop complaining.
L
I find this confusing. If you have a lien on a vehicle you are trading in, doesn’t that lien have to be satisfied before you can transfer title to the dealer? If this lien is being satisfied with a new loan, how would the dealer ever get their hands on the money? Wouldn’t the dealer have had to satisfy the lien before they could acquire or dispose of the title?
Does the dealer put this "promise" in writing?
Simple solution, don’t trade in your used car, when you buy a new one. Sell it directly to the next person who will be driving it, and you can both come out ahead, without the dealer default risk.
“Their credit is destroyed for no fault of their own because the dealer defaulted.”
yet another example of how the banks have twisted the system in their favor.
That signature is as good as the signature on a Federal Reserve Note.
No, and it doesn't mean anything anyway because your local, state and federal governments can abrogate any contract any time it pleases them.
And notice that the car dealers (”untouchables”) don’t go to jail for the fraud, as do people who get picked up on technicalities regarding loans. That’s because our country is rife with organized crime and has been for a long time.
Place here was doing that. It made the news and I think they closed down.
Pssst...it ain't the banks. (Don't tell anyone).
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