Paying down Your Old Car Before Buying A New One: Vehicle Owners with Negative Equity Should Utilize Care When Trading-In their Car
The Attorney General provides Consumer Alerts to share with the general public of unjust, deceptive, or business that is deceptive, also to offer information and assistance with other dilemmas of concern. Consumer Alerts are not advice that is appropriate legal authority, or a binding legal viewpoint through the Department of Attorney General.
Paying down Your Old Vehicle Before Buying a New One: Vehicle Owners with Negative Equity Should utilize Caution whenever Trading-In their Vehicle
Our vehicles are element of our Michigan identification. We develop them, get them, restore them, take pride them off at the North American International Auto Show, the Woodward Dream Cruise, and car shows all over the State in them, and show. In regards to time for an innovative new automobile – possibly our families are growing, or our spending plans are shrinking – we search for deals, and hear claims like “we are going to pay back your old automobile, no concerns asked!” We must not allow our love for automobiles make us dismiss the care that individuals utilize when coming up with any major purchase.
Buyer Beware – Dealers Might Not Pay Back Your Old Vehicle as Promised!
In an attempt to attract purchasers with their showrooms, some dealers may guarantee to repay any outstanding loans (also referred to as liens) in your current automobile to simply help enable you to get into a more recent model, or an inferior, more fuel-efficient car.
This promise is particularly popular with automobile owners who will be currently “upside down” in their present automobile. This means the car owner may owe more on the motor car finance as compared to vehicle is well worth – a predicament also called “negative equity.”