How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask PDtax Your Own Question
PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 4674
Experience:  Tax professional and business consultant for 35 years.
64119565
Type Your Finance Question Here...
PDtax is online now
A new question is answered every 9 seconds

I went to the car dealership on Black Friday November 27th

Customer Question

I went to the car dealership on Black Friday November 27th to trade in my existing 2014 Dodge Journey that I thought I was trading in come to find out as of February 14th the vehicle is still at the dealership my paperwork didn't state that the car was a trade in now I am responsible for two vehicles 1 I can't afford to pay the second vehicle I am making car payments on if I wanted to buy two cars I couldn't buy them why am I stuck with the first vehicle from the dealership and now from the credit Capital One is there anything that can be done and now that the dealer knows that the car is going there a lot since November 27th they want to have it towed to my house I don't understand how this happened if I can afford one vehicle how can I afford two vehicles my income will not allow this my only other step is to surrender the vehicle repossessed vehicles from from the company
Submitted: 1 year ago.
Category: Finance
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'm PDtax. There are a few solutions I can think of.

One is to just sell the car you don't want. Sell it outright, sell it to a dealer, and pay off any loan balance still due.

The second is to trade both vehicles on a new one. That way you should be able to fix things and your new car loan absorbs any shortage on the two car trades.

Note that I did not address what happened, and or how it did. Only that you need to fix it, and how.

Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.

Customer: replied 1 year ago.
I am unable to sell the vehicle because on the highway off which is $20,000 I can't trade in both vehicles because the debt to ratio is so high to purchase on a third vehicle they are saying I am basically stuck with this first vehicle I bought myself two cars I don't understand how this can happen the dealer never said that they wanted to buy the car back from me this is not the answers that I am looking for I basically knew the answers from asking questions I am not satisfied with spending $37 for the answer that I already knew from my car financing people there has to be a better way than screwing up a consumers credit by just repossession or surrendering the car back to the auto financing company
Customer: replied 1 year ago.
Can you please refund me my $37 back I am still stuck my question was not resolved for my situation
Expert:  PDtax replied 1 year ago.

From this side of your question, it would have been good to know you were $20,000 upside down in the first car. I think that what you mean by "I am unable to sell the vehicle because on the highway off which is $20,000".

Then the solution seems simple. Sell the second car. Once it is gone, and you likely don't lose much, you can trade the first car.

If that solution doesn't work for you, please advise. With the additional insight you provided, it seems to be the best of your options. Positive feedback is appreciated. I'm PDtax.

Expert:  PDtax replied 1 year ago.

A follow-up to my earlier response:

If you were indeed 20,000 upside down in your old car, I suspect this was not a paperwork mistake. Trading in a car with that much to be added to the loan for your next car would be likely impossible. Lenders would not want to lend $40,000 supported by a $20,000 car. I suspect the dealership knew exactly what it was doing.

I did not suggest either legal pursuit of the dealership or surrender of either car. You won't win the legal issue, since you signed the contract of sale that omitted the trade. Surrender means credit rating issues and a larger debt you will have to pay.

Sale of the second car clears one of the two car loans and is the best resolution. I just thought you should know that this professional, 25 years experience in the car business, suspects this was not a mistake.

Your positive rating is appreciated. PDtax