What to do about a mix-up with my trade-in regarding a new car purchase?

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What to do about a mix-up with my trade-in regarding a new car purchase?

I traded in a vehicle a month ago but after 1 week I realized that my chosen vehicle (Car 1) wasn’t a good fit so I took it back to the dealer. I took another vehicle (Car 2). Now my original bank is calling me because the dealer has not paid off my original my trade-in. The dealer states Car 1 did not go through because I returned it in just 1 week. They are asking me to tell the bank that I still drive Car 1 in order for them to get paid. I don’t want to lie to the bank, but my credit is about to get ruined if they don’t pay off my original trade in.

Asked on June 21, 2011 under General Practice, Virginia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

To resolve the car situation problem that you have, you need to carefully read the purchase contract that you presumably have with the car dealership as well as all other documents provided you concerninf car number one and car number two. These documents would control in general your rights and how to resolve the situation.

Usually, the written contract for purchase of a car where there is a trade in of a car in exchange for the new one mentions any obligation owing on the traded in car and who will be paying it off. If the dealership in the purchase contract agreed to pay off the balance owed on the car you traded in, it would be stated in the purchase contract for the first chosen vehicle, car 1.

If the agreement makes no mention as to who is to pay off the car you traded in for car 1, then it would appear you are on the hook for doing this.

You should contact the bank that is owed money on the car you trded in telling its representative the truth as to what happened, offering to send all paperwork to it regarding car 1 and car 2. Perhaps the bank's representative will assist you in clearing up the payment situation.

Good luck.


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