What is the name of your state (only U.S. law)? Indiana
My sister went to a car dealership and traded in her car for a newer model. She completed all the loan paperwork and was approved and given the car. 3 weeks later the loan company decided to not do the loan, so the car company demaded and got back the new car. However they had already sold her trade in but only got $3500 for it, and she still owed $4500 on it (to that car company who financed it) They are now demanding the remaining $1000 be paid now. I told her that they got $3500 in the sale and that equals out to payments equaling about 9 months and that she should not give them a dime till after those 9 months and then just make the reguler payments she had until it is paid off since she doesn't even have the car anymore. What are her options?
My sister went to a car dealership and traded in her car for a newer model. She completed all the loan paperwork and was approved and given the car. 3 weeks later the loan company decided to not do the loan, so the car company demaded and got back the new car. However they had already sold her trade in but only got $3500 for it, and she still owed $4500 on it (to that car company who financed it) They are now demanding the remaining $1000 be paid now. I told her that they got $3500 in the sale and that equals out to payments equaling about 9 months and that she should not give them a dime till after those 9 months and then just make the reguler payments she had until it is paid off since she doesn't even have the car anymore. What are her options?