What to do about the pay-off of a car loan?
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What to do about the pay-off of a car loan?
Recently my mother traded in her car that she had for less than a year. She went back to the same dealership and they talked up how she could trade up to something she would more prefer. She madde the tade and everthing went through (so we thought). Then, about a week or so later the bank from her original car loan called stating she still owed $2000. Somehow between the dealership and thebank, the amount sent in was wrong so the new car loan didn’t cover the old one. The bank is saying that she still needs to pay the balance. Is this correct? She wouldn’t have signed knowing this.
Asked on August 13, 2012 under General Practice, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The best way to resolve the situation you and your mother are in with respect to the $2,000 shortfall owed on the former car is to carefully read the purchase and trade in agreement with the dealerhip and the new car. The answer to your question will lie in such paper work.
Possibly the dealership that received the old car in the trade could be responsible for paying the $2,000 short fall owed to the lender on the old car. If you cannot get the answer you need from the paper work I suggest you look at, I suggest that you consult with an attorney that practices in the area of contract law.
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