Unfortunately, you can't simply rely on how long do you have to return a new car to the car lot and walk away or on returning a buy here pay here car contract if you haven't finished paying for it. If you do, it is considered a volunteer repossession and will hurt your credit score.
Like any other auto loan, a signed contract binds you to the terms stated. Even if you can't simply turn in your vehicle as well as stop paying for it, you don't always have to stick with a car you don't want if it's not paid off – there are options for you to consider to get out of a buy pay here service agreement.
The first step in getting out of a BHPH contract:
If you're determined of returning a buy here pay here car but are aware of a loan balance, you must first obtain a payoff amount from the lienholder. The payoff quote should include ten days of extra interest from the date you request it, as well as any fees or early payoff punishments. This gives the lender ten days to receive the payoff funds.
Once you have the quote, you should have the car appraised by at least two dealerships, preferably more. Then you can compare offers to find the best deal for you. Once you have the evaluations, you must determine whether or not you have equity.
You have equity when one's vehicle is good enough to justify more than what users owe on a loan. Subtract the payoff sum from the appraised value to determine your equity situation. If the figure is positive, you have equity; if it is negative, you have negative net worth, which means you owe more on the loan than the car is worth.
Three ways to get out of a BHPH contract:
Once you've determined your equity situation, you can decide how to get rid of your BHPH vehicle. The services differ, but you usually have three to choose from:
- Sell it yourself – You can usually sell a car secretively for more money than a dealer would. This is a great choice with negative equity if you can sell it for the same or more than the remaining loan balance.
- Trade it in to yet another dealership – If you have equity and thus no longer want to work with such a BHPH dealer, trade it in.
- Return the car to the BHPH lot – If you have equity and want to continue working with the same dealer, you can trade it in at the same place where you purchased it.
Conclusion:
Don't just wait how long you have to return a new car to the BHPH lot if it isn't paid off. This means you're giving it up voluntarily, which may appear on your credit reports as a repossession. If you want to get out of a BHPH contract, follow the correct procedures for deciding your equity situation and paying off the loan.
Andrew Richardson is the author of this Article. To know more about Reset odometer please visit our website: allenstewart.com
As your Grand Rapids, MI Buy Here Pay Here auto dealership, we are here to help you obtain financing and purchase a car, whether you have bad credit or no credit.
