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Loren
Loren, Attorney
Category: Legal
Satisfied Customers: 30855
Experience:  30 years experience representing clients.
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My son bought a new car from a dealership last year paying

Customer Question

my son bought a new car from a dealership last year paying the sticker pricing with a high interest rate. He told them he has TBI and PTSD but they made the deal happen.. Now he cannot afford the payment. I am trying to find out what the best option is for turning the car into the bank. Is there any legal recourse with the dealership? Sticker price with a very high interest rate.. He had never bought a car before and didn't really understand all that he was getting into.
Submitted: 6 months ago.
Category: Legal
Expert:  Loren replied 6 months ago.

Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you.

What you are seeking to do is called a voluntary repossession.

You will need to call the bank and negotiate an "exit" strategy.

The main issue you will want to try to avoid is liability for any deficiency owed on the loan after the car is sold. If the bank will not provide a general release then try to get a ceiling on any liability for the deficiency.

If you are able to reach a settlement it is essential that it be in writing and signed by the lender so that it is enforceable.

Customer: replied 6 months ago.
he has gap insurance does that help if he turns it back over to the bank?
Expert:  Loren replied 6 months ago.

Thank you for following up.

No, GAP insurance only applies if the vehicle is a total loss, either by an accident or theft.

Expert:  Loren replied 6 months ago.

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Expert:  Loren replied 6 months ago.

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Expert:  Loren replied 6 months ago.

If you have no further questions please remember to rate my service on this page by clicking on the 5 stars so that I am credited by JA for answering your question and also so that I may close the question. Thanks.