YarisOwnersDad
05-20-2009, 05:22 PM
Our local Chevrolet dealership went out of business on April 20th, but they stopped paying-off the loans on the trade-in vehicles for a while prior to closing their doors.
This hurts the person who traded-in the vehicle AND the person who came along and bought the trade-in vehicle. The person who traded-in the vehicle is still legally responsible for making the payments, even though the car has been traded-in. This happened to a guy whom I used to work with. In his case, the dealership finally came through and paid-off his trade-in, but that was several weeks before they actually shut the place down. Those who bought cars and traded-in their old cars in the last days of the dealership were left holding the bag.
The person who comes along and buys the trade-in vehicle finds that he cannot get the title changed to his name, because the lien from the previous owner has not been satisfied.
What a mess!
I would be VERY careful about this, if I were trading cars now. I'm not sure how this situation could be avoided, but I would sure be finding out, if I were going to buy at this time. Maybe this situation is extremely unusual, but with the shape many care dealers are in, this may become more prevalent.
Tom
This hurts the person who traded-in the vehicle AND the person who came along and bought the trade-in vehicle. The person who traded-in the vehicle is still legally responsible for making the payments, even though the car has been traded-in. This happened to a guy whom I used to work with. In his case, the dealership finally came through and paid-off his trade-in, but that was several weeks before they actually shut the place down. Those who bought cars and traded-in their old cars in the last days of the dealership were left holding the bag.
The person who comes along and buys the trade-in vehicle finds that he cannot get the title changed to his name, because the lien from the previous owner has not been satisfied.
What a mess!
I would be VERY careful about this, if I were trading cars now. I'm not sure how this situation could be avoided, but I would sure be finding out, if I were going to buy at this time. Maybe this situation is extremely unusual, but with the shape many care dealers are in, this may become more prevalent.
Tom