January 11, 2011
I have negative equity in my car? But already traded my car?
By Planet Wealth
I have recently traded in my 2003 Holden Cruze. For a 2007 Toyota Ascent. I still had ,500 owing on the holden. The dealership gave me 7,500 for it. We place down 1000 deposit and got approved for finance through St George Bank. We signed the contract and picked the car up. I have transferred the rego over into our name. Now the dealership a day after signing the contract and picking up the car have come to us saying that the bank require another 00 and the terms of the loan have changed from a 84 month loan to a 5 yr loan which will increase the fortnightly repayments by . They said because there is so much negative equity in my car that are required to this.
But what I want to know is, Why didnt the dealership inform us about that something like this could happen given that the loan is over 84 months (which the dealership urged us to take as the repayments will work out cheaper).
What are my options? Does the fact that the loan has been approved and the contract signed and the rego transferred mean anything?
Topics: Uncategorized | 6 Comments »
6 Responses to “I have negative equity in my car? But already traded my car?”
Comments
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January 11th, 2011 at 7:59 am
The dealership has no obligation to inform you what the bank may or may not do, since they didn’t know and had no way of knowing what might happen. They allowed you to take the vehicle based on preliminary estimates of the deal from the bank. When they got the actual numbers, the deal changed. You can accept it, or you can reject it and find different financing, which won’t be simple to find considering the amount you were upside down on the car you traded. Or you can cancel the deal, return the car, and pay for the time you used the car you bought. Talk to the dealership as to your alternatives.
Keep in mind the loan was NOT approved, it was tentatively approved, and subject to change.
January 11th, 2011 at 7:59 am
You financed a car for 7 years!!!. WTF. You are digging a deeper and deeper hole. This would not going to end well. You are lucky they are changing the term to 5 years. You will pay a lot less money in the long term.
And yes, you will have to place more money in cash into the loan to get it. There is a chance you could call off the whole deal but it will be expensive at this point. The dealer is being a bit flakey but I never expected Australian dealers to be any more straight forward than American ones here in LA.
January 11th, 2011 at 7:59 am
What made you reckon in this current world economy that you could trade a car and get a loan for the new car for more than it is worth?
Sounds like you didn’t do your homework.
January 11th, 2011 at 7:59 am
1st. I’ve never heard of this cars so you may not be in the use 2nd 84 month loan you’re getting ripped off … if i were you i’ll tell them NO and get all your money and your ancient car back pay on it for more time or try to sell it privately and get more money for it
January 11th, 2011 at 7:59 am
I would have never traded the car and got ripped that terrible. i would have sold the car. NOTICE the dealer will tell you anything to get you in a car so they can have a pay day! they care nothing about you or your payments as long as you ride out there lot in there pocket.return the new vehicle if possible. thats way to much NEG balance!!!!!!!!!!!!!!!!!!!!!!!
January 11th, 2011 at 7:59 am
sounds like your from Australia, i am in America, so i can tell you what we do here and hopefully that works. if you signed a contract than you do not owe them anything as long as you can prove that – ie your contract they can not go after you for more money. the dealership will have to pay it off. simply state that you have a contract that says that you and the dealership signed. if they give you anymore grief then contact a lawyer- or you can just tell the dealership you are going to take the contract to a lawyer, even if you don’t – excellent luck