DO NOT BUY A CAR BEFORE YOU READ THIS! The Biggest Risk To You Buying A Car In Today's Market

As you know many dealerships are closing throughout the country and things couldn't get worse for you the car buyer, right?

WRONG.

You should be VERY worried if you trade a car to a dealer if you still owe money on it.

Why?

Because so many dealers are in financial trouble, there is NO guarantee when you drive that new car off the lot, they will  pay off the loan on YOUR car.

LOT'S of people around the country are having their credit DESTROYED by dealers like this becuase they drive the new car home and assume the dealer is paying off their car.

Then a few weeks later the bank calls and wants the MONEY.

And guess who is on the hook for it?

Y-O-U!

The Spies recommend being VERY careful before you trade your car if you owe money on it.

The best scenario to protect yourself is to sell it yourself.

Yea, it's a hassle, but if you do it right, you will get more money and you know it will be paid off and your credit is safe.

SPY before you BUY!

AutoSpies.com Photo Galleries

If you want to see your photos running on our homepage photo ticker, be sure to upload your photos on the go by sending them to Mobile@AutoSpies.com

Share on Facebook

cococo - 6/9/2009 1:52:19 PM

-2 Boost

Where's my previous comment? Was it removed?

veyron1001 - 6/9/2009 2:02:38 PM

+1 Boost

So this is another indirect way to avoid GM stealerships. Thanks autospies.

Agent001 - 6/9/2009 2:17:17 PM

+3 Boost

Not just GM dealerships....be VERY careful everywhere.

001

AMiodynski - 6/9/2009 2:17:43 PM

+1 Boost

Ever hear of Spell Check?

This is not a "new" problem, don't be fooled. But a dealer that does not pay off your car can still be liable if you have all your proper paperwork. I know of a Scumbag dealer that would take 2-3 months to payoff trade in's until he got hammered with a class action lawsuit.

Agent001 - 6/9/2009 2:19:45 PM

+2 Boost

No, it is not new but it is getting rampant in today's economy.

001

Agent001 - 6/9/2009 10:19:19 PM

+1 Boost

Not true.

If they default, you're hosed, even with the paper.

But you have some good toilet paper.

001

Agent001 - 6/9/2009 4:06:31 PM

+2 Boost

But even those dealers are getting into trouble, so there IS no safe bet right now.

Buyer beware.

001

toolatetorace - 6/9/2009 5:19:55 PM

0 Boost

I would bet that people that owe money on a car that's being traded does not have a blue chip credit report

investor27 - 6/9/2009 10:00:00 PM

+1 Boost

What about returning a leased car when the lease ends? If we decide not to purchase the car, and just return it, are we responsible for the rest of the car after the dealership goes bankrupt?

0to60 - 6/9/2009 11:08:12 PM

+1 Boost

I doubt it

kablaam - 6/10/2009 8:55:32 PM

+1 Boost

Well when you lease you do not actually own the car, rather, you are renting it from the manufacturer. When you return it to a dealership and that dealership(agent for manufacturer) signs off on receiving the vehicle, your obligations, are satisfied.

Remember, in a lease the contract is between you and the manufacturer(Finance division), or whatever bank you leased it through. Read the terms/conditions.

Steve - 6/11/2009 5:22:19 PM

+1 Boost

What kind of dolt takes on a debt in the form of a car loan, and then assumes that the debt auto-magically disappears because he has sold the car to a dealer? Wow!