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.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
