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yehong

Active Ch13 got car about a week ago turns out it has big issues

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Hello dear friends, some quick advice is needed:

 

Buyer is in: 

- Active Chapter 13 

- Trustee approved a car purchase with a letter

- Car was purchased about a week ago and within same week major problems with engine and transmission started to appear

- Salesman and service manger were notified immediately of the issues

- Dealer said bring the car in for check

- Car is now sitting at dealers service department since last few days

- Service department said they have found an issue but car was sold AS IS so customer has to pay out of pocket

- Carfax shows service department performed extensive work on the car before putting it on the lot for sale

- First payment is not due until mid- April 2019

- Down payment of $900 was given on the deal

 

What are the options for the buyer?

1- Can the car be returned to dealer due to major issues within one week of purchase?

2- Will the financing company (which is also very notorious), come after the buyer if car is returned to dealer or allowed to be voluntary repossessed at the dealer?

3- If voluntary repo, will the buyer be able to find another lender to finance a vehicle?

4- Will the dealer allow the buyer to buy another car and return the previous one under same terms if buyer takes that route instead of just returning/voluntary repoing the car?

 

 

Thanks in advance!

 

 

 

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Posted (edited)

@cv91915: No it was not ambiguous. The thing that was ambiguous was that service people knew about the problem but their fix was only good until couple hundred miles.

 I think the repairs to the car were not done correctly or they did some temporary fix so as to just get the car off their car lot.

 

@cv91915 It appears that you would be EXTREMELY HAPPY with a $20k lemon car if I sold you one, and which performed well during test drive but broke down the next day, just because you signed that NO WARRANTY paper?

Edited by yehong

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Posted (edited)
21 minutes ago, yehong said:

@cv91915: No it was not ambiguous. The thing that was ambiguous was that service people knew about the problem but their fix was only good until couple hundred miles.

 I think the repairs to the car were not done correctly or they did some temporary fix so as to just get the car off their car lot.

 

@cv91915 It appears that you would be EXTREMELY HAPPY with a $20k lemon car if I sold you one, and which performed well during test drive but broke down the next day, just because you signed that NO WARRANTY paper?

I'm talking about contractual liability for the repairs. 

 

Why would you buy a car that had extensive recent repairs on the Carfax report?  Recurrence was an obvious risk that you assumed when you signed the papers.

 

Sad stories don't change the terms of the agreement you signed.  If there was misrepresentation or fraud you have recourse through the legal system.

Edited by cv91915

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30 minutes ago, yehong said:

@MarvBear  Prestige Financial

Ouch,   I would never sign a dealer agreement with these folks.  I've been in the automobile business since 1972 in almost every position one could have.   One thing I have never accomplished is to successfully complete a loan for a consumer involved in an ongoing bankruptcy proceeding.

#4 might be your best bet although that is a complicated undertaking from the dealer's standpoint, you might have an advantage because nobody wants a 1st payment default in their portfolio.

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@marvbear Thanks! 

 

Re #4, just realized the buyer would still have to go with the same lender if dealer is willing to allow different vehicle purchase. It was very hard to get financing in the first place due to Ch13. 

Also, you mentioned since 1st payment is not made yet, it might give buyer some advantage. Can you please explain how the buyer should use that leverage?

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2 hours ago, cv91915 said:

I'm talking about contractual liability for the repairs. 

 

Why would you buy a car that had extensive recent repairs on the Carfax report?  Recurrence was an obvious risk that you assumed when you signed the papers.

 

Sad stories don't change the terms of the agreement you signed.  If there was misrepresentation or fraud you have recourse through the legal system.

Thanks for your insight! I am pretty sure many people go through this situation everyday and not everyone can afford to use legal system due to costs so when we come here to seek advice we are trying to find options. Like "The snake dies and the club doesn't break". 

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41 minutes ago, yehong said:

Thanks for your insight! I am pretty sure many people go through this situation everyday and not everyone can afford to use legal system due to costs so when we come here to seek advice we are trying to find options. Like "The snake dies and the club doesn't break". 

Where I'm sitting right now it costs $75 to file a small claims case if you are seeking $5,000-10,000 in damages.  

 

How much are the repairs going to cost?  If your case is less than $5k the filing fee here is $30-50.  

 

That should be doable for anyone with the means to make payments on a $19,100 car loan with an outrageous interest rate.

 

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3 hours ago, yehong said:

@marvbear Thanks! 

 

Re #4, just realized the buyer would still have to go with the same lender if dealer is willing to allow different vehicle purchase. It was very hard to get financing in the first place due to Ch13. 

Also, you mentioned since 1st payment is not made yet, it might give buyer some advantage. Can you please explain how the buyer should use that leverage?

Dealers do not like to have a first payment default occur with any contract they sell to a lender.  If you tried to use that as leverage with me, it wouldn't work.   I'd just work a little bit harder to give that lender a couple more qualified deals to make up for it.  All I'm suggesting is that you make that appeal to them to exchange vehicles.   That may or may not work depending on their inventory situation.   The vehicle has to fit the trustee parameters, then the bank parameters, then have enough profit to pay the bank fee and leave the dealer with some profit andd then the consumer has to like/want it.  I offered that tidbit of information because sometimes knowledge is useful even when you can't hammer someone over that head with it.

 

If you repo that loan while in a BK I think your trustee might not want to go for another exception on your behalf.

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Why is the buyer being referenced in third-party terms?  I am left with the impression here that the OP is NOT a party to the transaction.  And, if that is accurate, then I don't know that we have been given all relevant facts. 

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@centex  Please rest assured. I gave you 100% complete information. I reapply appreciate for all the replies. They were very helpful and hope they will help resolve this issue. Kind Regards @MarvBear @cv91915

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How much did they say it would cost to fix? I doubt you have major problems with both the motor and the tranny. Take it to another shop to see whats actually wrong with it.

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