Ok, my wife went and got approved for an auto loan. She still owes on her previous car an it is worth less than half what she owes. She called a dealer to look at a car and called me saying that there was nothing they could do, but they were telling her that she should just sign a waiver and let them repo the car. I told her on the phone to run out of there because we would still owe on the difference of the loan after auction etc. Well, she told them that and they kept insisting it was the best way and that George Bush’s bailout included banks taking voluntary repos and forgetting forgetting about the balance. Luckily she told them to stick it and walked out.
Now does that sound right and is it legal for these guys to say things like that just to get a sale? Should I be sending a complaint to the BBB and authorities?
Originally posted 2009-09-05 20:55:39.
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{ 4 comments… read them below or add one }
What a creepy way to make a sale.
You will, of course, be liable for the balance of the car plus any repo fees.
You (and other consumers) will not be “bailed out”, but your credit will be ruined for the next 7 years.
Send your complaints to the BBB and to your state’s Attorney General’s Office.
It is not ethical. But trading in a car you still owe money on is very unwise.
There is really nothing illegal about it. If someone is stupid enough to take their advice, then it’s their own fault. Certainly what the dealership is suggesting is immoral, but some will do whatever it takes to get a sale. You were right to tell your wife to run.
I know instances where the dealership tricked customers into believing they were “trading in” their vehicles, when in fact they just pushed some forms around the desk. Later, the “traded” vehicle was repossessed. Better read EVERYTHING you sign!
Agreed it’s not illegal but it is unethical and immoral. Of course you cannot Simply walk away from an auto loan. Plus it would devastate your credit. I have never heard of voluntary repos and GW Bush. Only Hyundai has such a program and that has severe restrictions. They are worthless lying scumbags and you did the right thing.
And yes, register a complaint with the BBB.