What can I do if the loan on my trade-in has never been paid off by the dealer?

Get Legal Help Today

 Secured with SHA-256 Encryption

What can I do if the loan on my trade-in has never been paid off by the dealer?

I bought a car with a car loan and drove it for a year. I then didn’t want it anymore so I brought it to a dealer to trade it in for a different car. When the trade in went through, I was told that my car would get “sold” and the bank will get their money. The car was sold to a young kid; I have the paperwork for when the car was sold to him. It’s been 8 months and I’ve been paying 2 car notes. One from the orignal car and the new car they gave me. The dealer won’t write me a check to pay off the car.

Asked on June 2, 2015 under General Practice, New York

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If a dealership agrees to pay off your existing loan (even in writing), there is no guarantee that it will do so.  It might be a dishonest business or it might be having financial difficulties, etc. And, has you have unfortunately found out, regardless of the reason that the dealership has failed to pay off your loan you are still responsible for payments to the lienhiolder (i.e. the auto finance company, bank, etc.). 

What you need to now is to consult directly with an attorney to see what option is open to you. The fact is that you may have legal recourse under the Federal Trade Commission’s “holder” rule. You may also have remedies under state law. Additionally, you my want to contact your state's Attorney General's office to see if you can file a compliant and/or get help in resolving this situation.


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