Can a Car dealership legally force you to pay off your car before its due?
My friend financed a 2017 Civic in 2017 and she has gotten into 3 accidents 2 of them being her fault.
So Honda saw that she financed the car from 2017 to 2022 a 5 year finance. Then earlier this year they asked her to pay off the car in full by the end of 2019. They explained to her all the accidents and stuff and I guess they did not want to lose money just in case they had to Repo the car cause she only works part time.
They probably didn't think that she was able to afford the whole car and probably thought that one day they would have to Repo the car and be left with a car in 3 accidents.
On top of that after the 2nd accident her Insurance company dropped her.
- SlickterpLv 79 months ago
That would depend on what she signed.
Even if they have to repo it, she still owes the money.
- YetiLv 79 months ago
There's almost certainly a clause in her contract that allows them to require this. If she destroys the car they're going to have nothing to repossess if she doesn't make payments.
It's pretty common in loan agreements to have clauses that allow the whole amount to become payable rapidly or immediately if someone starts missing payments or similar. Her insurance dropping her could have triggered this as well.
- R KLv 79 months ago
part of her agreement with the finance company was she had to keep insurance on the car for the duration of the loan. if she doesn't do that the finance co. could either take the car back or have her pay it off.
- Anonymous9 months ago
Normally not but is there something in her sales contract? Plus if her insurance company has dropped her, her sales contract likely has a term requiring her to have insurance. If she can't or doesn't have it (it's now going to be expensive), they can put insurance on the car but it's going to be expensive and she has to pay for it. It also typically only covers them. It's not the dealership, it's Honda Financing Company.
- How do you think about the answers? You can sign in to vote the answer.
- PercyqtedLv 79 months ago
Of course they can; IF their terms and conditions allow them to do so.
I've not read their Ts&Cs but you can bet your bottom dollar there is such a clause
- Markus ImhofLv 79 months ago
Depends on what's written in her contract.
One condition might (usually would) be that the car would have to be insured. No insurance = breach of contract. In this case, giving her until the end of the year might already be generous.
- .Lv 79 months ago
It depends on the details of your loan agreement.