Q: Car loan contract.
I'm writing to get an idea for what my options are. I signed onto a car loan that I wasn't of clear mind to do so, and the dealership is refusing to allow me to cancel the loan.
Basically, what happened is that, while in the dealership before signing papers, I received some horrible news regarding my mother in the hospital. She's been in the ICU for the past two weeks, and I've been taking care of her. I went back into the loan office more desperate for a car and not thinking straight, and agreed to a massive obligation that I can't fulfill because of it. I was panicking because I can't not have a car during all this turmoil. Which is true, but if given time to read and think about it in clear mind, I wouldn't have agreed to such a bad deal.
A: Sorry to hear about your ordeal. I assume you mean that you not only want to cancel the loan, you want to cancel the entire purchase transaction and return the car, as if the transaction never happened. Unfortunately, there is no way to do that unless there is some illegality - for example, if the loan papers did not comply with the requirements of the Truth-in-Lending Act. If there is no illegality, you would need to either (A) sell the car to get this off your back, or (B) file for bankruptcy (if you're eligible), which is the worse alternative. To sell, you'd need to talk to the lender about your intent to sell and ask what steps must be taken in that process to pay off the loan, and find out if the finance contract has a penalty for paying off the loan early. The dealer may be willing to buy it from you and handle the lender issue for you - of course, probably at a net loss for you, and if this was a new car, definitely at a large net loss. Compare the dealer's offer (if they're willing to make one) with the blue book value of the car (see kbb.com) and any other offers you may get from other dealers or private individuals.
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