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Folding dealers shock car buyers with unpaid liens

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posted on Feb, 1 2009 @ 07:44 PM
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Folding dealers shock car buyers with unpaid liens


news.yahoo.com

SACRAMENTO, Calif. – The national wave of auto dealership closures has come crashing down on thousands of people who are on the hook for used-car loans that dealers were supposed to absolve.
When a car buyer still owes money on a vehicle he is trading in, the dealer promises to pay off the outstanding loan, then resells the vehicle. But as more dealers go out of business, some are sticking consumers with the bill. Lenders can then go after the previous owner who thought the debt was paid, or repossess the car from the new owner who assumed it came with clear title.
"It's devastating for people when it happens because they have two car payments and they can't afford them," said Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a Sacramento-based nonprofit that lobbies on behalf of vehicle owners. "Their credit is destroyed for no fault of their own because the dealer defaulted."
(visit the link for the full news article)




posted on Feb, 1 2009 @ 07:44 PM
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This is ridiculous! Getting your credit destroyed because the dealer defaulted and stuck you with the bill? Why take the risk of trading in a car when you are going to be stuck with the bill anyway?

Has this happened to anyone? This is the first i've heard of anything like this. Why do people keep getting screwed over?

I'll be sticking with my vehicle. Looks like i'm going to be driving it for a long time.




news.yahoo.com
(visit the link for the full news article)



posted on Feb, 1 2009 @ 07:46 PM
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This is ridiculous, owners of dealerships have been making a killing and now that their sales are down they are just making out with the money and sticking the people who made them rich with the bill...

....wait... this isn't new its the American way now, look at the banks.



posted on Feb, 1 2009 @ 07:52 PM
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reply to post by Num1Skeptic
 


If this info continues to come out and continues to happen, this may flat out kill the auto companies. People will begin to get worried that this will happen to them.

You can't blame them either.



posted on Feb, 1 2009 @ 07:55 PM
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Sounds to me like some car dealers need to be prosecuted for fraud, theft, failure to honor contract,........................... something.



posted on Feb, 1 2009 @ 08:04 PM
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We recently had a local dealership in Orlando do that. He just picked up and said screw it. Left employees and consumers holding the bag. If this is what society defines as being a shrewd businessperson then I hope I never fall into that category.



posted on Feb, 1 2009 @ 08:09 PM
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NO.

THIS is NOT cool.

I wanna live in a world where the owner of my debt that goes under, takes my debt with them. Screw those guys having a bad business plan that cannot sustain itself, and then selling the debt on to someone else while they retire happily.

The American way is getting really ridiculous.



posted on Feb, 1 2009 @ 08:20 PM
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I would never buy a vehicle from a dealer unless I really knew him, I was not spending a whole lot of money and I was not signing a credit agreement (ie buying for the full price agreed).

All my bikes have been brought from small ad's and I've made mistakes... that's how I learnt, I spot something I can work with and that way I really understand the bike. I'm not great with cars simply because I only drive if I need to and I am provided a car/van. But if I were to buy a car I am confident the skills and state of mind will translate very well... Same for buying anything really, especially second hand,

If you can't afford to buy it (and maybe fix it) DON'T BUY IT!!!



posted on Feb, 1 2009 @ 08:25 PM
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Wow, more immoral actions by business managers.

This is capitalism at its finest, screw over the little guy as long as you have a profit, get used to it, because this is what all global leaders think is "best for the financial markets" while never holding these people to account.

This is just another tiny aspect of a larger picture where we'll all likely feel the pain at some point, whether through our banks, insurance, taxes, pay, working hours, social infrastructure... we'll all feel some aspect of it, and they'll be allowed to do it too.

Protectionism, smaller markets, anti-globalization, controls, these are all things each nation needs before it's too late. They say protectionism is bad, but it's only bad to the large corporations making a killing (quite literally) off of the regular citizen.

This whole episode is teaching the regular person one thing, that globalization is unstable, it's dangerous, we all need to make sure our nation is reliant only on itself for survival. Better still would be for people to understand that smaller communities and smaller trade circles are the only way our civilization can survive situations like this.



posted on Feb, 1 2009 @ 08:29 PM
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Aren't almost all dealers in trouble right now? Why take the risk? If this gets full blown attention, it will kill the auto companies for sure...it's not like they need more help in it happening.

But as i stated before, no new vehicles for me. I'm be keeping mine for a long time. I'm not taking the chance of getting screwed.



posted on Feb, 1 2009 @ 08:32 PM
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These banks doing these things are only going to enrage the public that much more. Many houses people were tossed out of are now being sold for less than one months mortgage or rent?What good are seized cars to these same banks who just got loans supposedly from the taxpayers?

If I didn't know any better, it would seem we're being purposely goaded into rioting against our system to bring on marsall law and the NWO.

Another thread mentions something similar to this in Europe and some news of protests in China as well. Yet China would more likely be able to revert back to it's old system far easir than we could.

I keep putting off cashing out my 401k. If only I had a crystal ball, I would cash it out and go to a casino and play the lottery.



posted on Feb, 1 2009 @ 08:48 PM
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reply to post by aleon1018
 


Leave the NWO package on the ground and step away slowly...


This isn't a NWO trying to goad you into rioting. This is a government doing a bad job in the face of something they've never experienced before.

The entire financial system is affected. This is far too complex a system to be regulated, monitored or controlled by any single entity. It's like trying to predict or control which way the wind will blow.

These are reverberations through the entire system.

There was a thread on here several months ago about how the collapse of the car industry would damage several other sectors from supply to financing for loans. And yet the government seemingly didn't see that coming until a few weeks later.

In the UK, we had the housing price falling, and people in the street were saying how this would hurt builders, fitters, furniture retailers, decorators, electricians, plumbers, insurers... the list is almost endless. And yet the government didn't seem to catch on to this until recently.

Now, we are seeing the fallout as companies are resizing and laying off as many as they can to suit demand.
In turn, this will affect transport, retailers, entertainment businesses, luxury item/service suppliers and so on.

It's all connected because it is the entire financial system around the world going into meltdown. And all because a few companies and governments decided that globalization was a quick and easy way of making people rich.

It's all about greed when you come down to it. People are never happy having a small company and living comfortably, they have to make it as big as can be and make more profit than the next guy. And in a global market, the stakes are a lot higher and the victims a lot worse off.



posted on Feb, 1 2009 @ 09:08 PM
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something like this is going on in my area a local toyota dealer has been selling new yotas for over a year but they failed to pay toyota. finally toyata had to call in the law now anybody who has one of these new cars is at risk for recieving stolen property lawenforcement officials have said.



posted on Feb, 1 2009 @ 11:22 PM
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Glad my car is paid off and my dad can fix my car when it starts having problems. Also have a friend of the family whom owns a junkyard where parts are very cheap because I am like family. Just disappointed this is happening to people.





[edit on 1/2/2009 by toochaos4u]



posted on Feb, 1 2009 @ 11:31 PM
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As much as this stinks it makes sense because the car is the only thing of value in the transaction , hire purchase or loan . That however does not excuse the fact that the dealers didn't have any insurance to this eventuality . If you are buying a car privately in New Zealand it is possible to check if it has any outstanding credit on it . Regulations should come in to effect to prevent this sort of thing from happening in the future .



posted on Feb, 1 2009 @ 11:38 PM
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Just one more reason why Congress (If they cared about us..) should make the "Credit Score" system ILLEGAL.



posted on Feb, 1 2009 @ 11:46 PM
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This doesn't seem right legally. All car deals require a contract. that contract should list info about the trade in and pay offs. I would think legally the dealership now owns that debt, once you sign.

i would definitely want my day in court before being held responsible.



posted on Feb, 2 2009 @ 12:42 AM
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Originally posted by disgustedbyhumanity
This doesn't seem right legally. All car deals require a contract. that contract should list info about the trade in and pay offs. I would think legally the dealership now owns that debt, once you sign.

i would definitely want my day in court before being held responsible.


Good point. Banks can sell "debt", and it is legally binding. Why can't regular people. Oh, wait.....



posted on Feb, 2 2009 @ 01:20 AM
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reply to post by sir_chancealot
 


Lol, exactly. The dealership does legally own the debt most likely. But when big creditors want their money they dont care who legally owns the debt. They go after the guy they are most likely to be able to bully, badger and harass into giving them a payment.

Good old double standard.



posted on Feb, 2 2009 @ 01:28 AM
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I'm having trouble believing this story, or at least, the possible ramifications of it.

Legally once the documents are signed, the previous owner is absolved of all debt involved with that item.

I don't doubt there are car dealerships that may try to "cut-and-run", but there's no legal grounds for creditors to go after the previous owner.

Any half competent lawyer would be able to take them to court to nullify the debts owing and probably manage to get money out of the creditors for time lost, "emotional damage", and whatever else the lawyer can get his hands on.

The creditors know this, they aren't stupid, just greedy. They aren't about to stick their necks out into the legal system knowing full well they'll lose it.



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