Can finance companies work deal settlements on vehicle loans if there is a problem with the vehicle?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can finance companies work deal settlements on vehicle loans if there is a problem with the vehicle?

We purchased a $30k vehicle and the motor blew up with only 68k miles. The original warranty had expired 3 month prior. Is there anything I can do to work a payoff settlement with the financial company since the manufacturer will not do anything.

Asked on September 1, 2011 Kansas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You can try to work it out with the finance company, but it's highly unlikely you will be able to. The issue is, the finance company has NO involvement in or responsibility for the condition of the car, whether it is usable, whether it runs, if it doesn't run, why that is the case, etc. They are only concerned about the loan. You borrowed money by agreeing to repay it; unless that loan agreement specifically says that repayment is conditioned or depend on the car being usable, then the fact that the engine blew up doesn't alter your responsibility to pay, any more than you'd be able to get out of the loan if the car were stolen or totaled. Your best recourse, if no one is responsible for the loss whom you can sue (e.g. a mechanic who made a faulty repair) may be to pay  out of pocket for a new engine--at least then, you'll still have a  working car. If you stop paying on the loan, on the other hand, you can be sued for the full amount and the lender can repossess the car, which--even without an engine--has some value.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption