Brians1979
Orlando,#2Author of original report
Sat, January 26, 2008
I went to the bank today to get a copy of the loan application and it turns out that the dealer lied about my monthly income/rent, and how long I've been at my job/apartment, and my home phone number. According to what I've read, and what the bank told me, this constitutes fraud and is grounds for cancelling the loan. I realize this probably happens quite often, but it goes un-reported because the borrower intends on keeping the car. I don't know how it's going to pan out, but I will update this report again as soon as I find out.
Jim
Orlando,#3Consumer Suggestion
Sat, December 22, 2007
Brian: Apparently you have alot to learn regarding finance. That's not necessarily bad-unless-you go into a deal without knowing exactly what happens. However, I am somewhat miffed that you don't already know enough to have avoided this. When you bought the first car, you signed a contract to repay the loan. The only way you "get out" of that contract is to repay that loan. When they do a repo, you STILL owe the money. They sell the car at auction and if there's a "deficiency" you pay it. The "deficiency" is the difference between what the car sold at auction for and what you owe. But before that, you wanted to trade in a car on which you still owe $13,000 I think you said. What do you think would happen to the amount you still owe? Do you think it just goes away? What would have happened is that $13,000 would have been rolled into the new loan and you would have been paying for two cars but driving one. Does that make sense? This was an expensive lesson for you. Whether or not your Beacon would go down just 30 points, I don't know. However, you should have known enough about finance to know what that salesman told you would result in a GREAT BIG BLACK MARK on your credit. Secondly, you went into the store with stars in your eyes. You just had to have that new car, didn't you? See anything wrong with that Brian? You just had to have it, right? Now you'll have a long time to think about that mentality when you go into a dealership. Be well!