Dear Terry,
I have just purchased a used automobile from a dealer here in Atlanta. I want to return it because I will not be able to cover the regular maintenance of the vehicle. When work needs to be done on the vehicle, it will be too expensive for me. The purchase is just three days old. Can I return the vehicle?
— Sallie
Dear Sallie,
There is no “cooling off” period when it comes to car sales. Once you’ve signed the papers and left the lot, the car is yours. (more…)
Readers rant on financial crisis
Readers sound off on financial turmoil
Here are a few reader e-mails touching on Treasury bailouts and the Fed.
“How is it that only one, two, three or four megabusinesses (consolidations, etc.) are allowed to take place that, if only one to four fail, the results can affect the entire U.S. economy? This seems extremely ridiculous and dangerous. Example: Now the airlines are consolidating even more (Northwest-Delta talks of consolidating). If we reach a point where there are only one to three airlines, isn’t there a danger that a union strike, management decisions or strategy issues could conceivably pretty much paralyze our entire travel industry in the U.S., etc. These circumstances are disturbing to me and I would think others would be similarly concerned. But I haven’t seen anything in the media that raises concern about the potential (and real) risks that lie with putting all of our eggs in one basket by allowing megabusinesses to develop rather than spreading risks among many smaller private businesses who, if some of them failed, would not have the same devastating “crisis mode” we are currently facing with the financial institutions, banks, insurance firms, brokerages, etc. How can the federal government continue to rescue private businesses that exercise poor judgement, unwisely delve into high-risk practices, get burned, and yet do not need to bear the consequences — which are left to taxpayers and others who use more prudent judgement. The quick answer by others is that “if these firms are allowed to fail, the results would be even more devastating to the economy” just doesn’t seem to make a lot of sense, because they set a precedent for other firms that could carelessly get themselves into similar predicaments with relative impunity. The world is not only “flat,” it is getting turned upside down.”
Dear Terry,
I am currently in Iraq serving with the Air Force, but will return in January with $10,000 in my savings account. I owe $13,000 at 5.6 percent interest on a car that is worth $9,000. I desperately would like to get into a home when I return.
Should I continue making payments on the auto loan and pay it off before saving a down payment for a home? Or should I sell the car and “eat” the upside-down amount, using the remainder to start my house fund and try to get into a car at a better ratio?
— Paul Bond
Dear Paul,
(more…)
Dear Terry,
I’m still about 21 months from finishing up my car lease for a Mercedes S550 and can no longer continue the high lease payments. Right now, I’m behind by two months and planning to return the car before they send a repossession guy to my house.
Do I still have to pay the deficiency, which is about $59,000, if I voluntary return the car? How long would my credit be ruined by this voluntary return? Do they have the right to go after my personal savings?
— Joy
Dear Joy,
(more…)
Dear Terry,
I was leasing an auto for 36 months when all of a sudden my job closed up and I was left unable to pay for this auto. They repossessed it. Now they want to charge $15,000 for the remainder of the payments. What are my options?
— DJ
Dear DJ,
You have very few options, and they are as follows: Pay the difference, to which the lender is entitled; try to negotiate a lesser amount with the lender; or seek bankruptcy protection. (more…)
Dear Terry,
OK, I knew that I possibly would have to suffer consequences out of desperation for a used car, but little did I know it would get this out of control.
I signed an agreement to keep this car for at least 18 months until eligible for trade. I am now in regret because I am suffering so much trauma being “out of pocket” with this car. I am paying literally $170 every two weeks for this car.
I signed an arbitration agreement that states that I can dispute the agreement and go into court. But how (with the least amount of hassle) can I get this reduced, or even be eligible for trade earlier than anticipated?
Dear Terry,
I heard on the news about a program to “sell” cars 10 years and older to the government and get $3,000 toward a new car. Is this true or a myth? And if it’s true, how do we go about it? My niece is in need of this service.
— Renee
Dear Renee,
I have never heard of such a program. The closest I can recall is that some areas of California once were offering tax credits for people who junked old, smog-producing cars and bought cleaner, more fuel-efficient vehicles. If you live in California, I’d check with the state Air Resources Board to see if any such programs are still available. (more…)
Dear Terry,
We want to buy a car that my brother-in-law is still paying on. Is that possible? Can he just sign over the title to us while we continue the payments?
— Donna
Dear Donna,
Most car loans are not transferable. You can contact the lender and see if it will allow you to qualify for the loan, which usually means the lender simply issues a new loan on the vehicle.
Some people drive a vehicle and make the payments on behalf of the original owner, who then would sign over the vehicle once the loan is paid off. But that’s not legal, and the person paying off the loan has no rights to the vehicle.
Despite the wide-ranging knowledge that’s available these days to help car buyers be more savvy and better able to strike the best deal — whether they’re shopping new or used — most shoppers still make some basic mistakes that cost them money.
Part of the problem is that unlike most other purchases, buying a car is often an emotional rather than a rational decision — someone gets what is sometimes called “new car fever,” and it can’t be quenched until the old set of wheels is replaced by something that’s shinier and sexier. (more…)