if my car is from a buy here pay here and not loan thru a bank can i get out of the agreement easier and how?

Asked on June 11, 2009 under Bankruptcy Law, Missouri


B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

"Buy here pay here" doesn't always mean the dealer itself is actually doing the financing;  they may simply be receiving payments for a loan company.

The only time it would make a difference, most likely, would be if there were something wrong with the car when you bought it, or the dealer's warranty wasn't honored.  There is a legal rule called "holder in due course" which sometimes makes a bank or finance company able to collect even if you have a problem with the seller, although many states don't allow that in some consumer transactions.

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