Help with Car Finance company?

I recently traded in my old car, still owed $2000 on it, for a new car. My payments were completely up to date when I traded it in. Now 2 weeks later my payment would have been due and my old finance company called asking for payment. Informed them I had traded it in and who I traded it in to. They told me they hadn't received the check yet and that I would have to make the payment or they would send it for collections. If I make the payment they with get that plus the entire payoff from the dealership when that check comes in. what are my rights?

9 Answers

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  • 2 weeks ago

    You should check this out with the Car dealer!! Otherwise, in my opinion, you are responsible for the payments.

  • 3 weeks ago

    LOL... "your rights". 

    You keep making the payment to the old lender until they pay the loan off in full. Since it seems to be taking a bit (usually, nowadays, it's done quickly... days, not weeks), check with the new dealer's F&I manager and see what the hold-up is. 

    Go ahead and make the payment, and once the new dealer pays off your loan you'll be entitled to any overage. This is normal. 

  • Anonymous
    3 weeks ago

    Call the dealer and FIND OUT what is going on.  Ask for a payment check that very same day.  Good luck.

  • JetDoc
    Lv 7
    3 weeks ago

    Talk to the dealer's sales manager. If your sales contract says they were responsible for paying the balance of your loan, they should have done it before now.

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  • Scott
    Lv 6
    3 weeks ago

    You are responsible for the payments until the dealer pays off your loan. If the result is an overpayment of the balance, you will receive a refund.

  • Anonymous
    3 weeks ago

    The dealer owes your old lender. Get on the phone today and demand a payoff check today. Pick it up in person and deliver it to your lender.

  • Anonymous
    3 weeks ago

    The finance company almost certainly has a lien on the vehicle so the dealership can't actually sell the car until they clear that lien on it.

    I'd contact the dealership and see what is happening.  To avoid an issue I would make the payment as you are required to (your contract with the dealership doesn't change your contract and obligations with the loan company) and you will get any overpayment refunded, they don't just get to keep the extra money.

  • Anonymous
    3 weeks ago

    Not much any of us can do from here - we don't have copies of all your paperwork.  We can assume that  1)  you signed paperwork that obligates you to make payments on car #1 - and probably outlines what you must to before selling/trading the car . . . . . . #2  I would think that the dealer you traded to would like to sell your old car - how can they without a title?

    Besides asking for payment, did the finance company have any suggestions?  What does the dealership you traded the old car to have to say - they seem to be the ones controlling the situation.

  • 3 weeks ago

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