Generally Americans have this habit of selling off their old stuff and purchase a new item. This is one of the reasons why money (monetary) rotation is high and innovation is high and America is the top nation of the world. But is this always a good idea, especially for Automobiles (Car), is it always good to go for trade-in?

Many a times the dealers don’t pay off the auto loan on time that too when consumers owe money to buy a car when they trade-in. They may not care about the obligations the consumers have. The consumers generally think that what the dealers do is unfair and is illegal, but legally, the car loan still ( & always) belongs to the consumer till the dealer pays it off  the consumer (bank or the lender). It is the consumer’s responsibility to make sure that the dealer pays it to the bank at right time.

In our experience we have come across many such situation where our customers ask us that they were paying the interest to the banks (lenders) for the trade-in amount too. Some times consumers believe that they don’t need to pay the trade-in amount as the dealer will take care of it, but they will receive a bill saying they have to pay penalty for late fees.

Some agitated customers will go to a level of suing the dealer for bringing them to this situation. But honestly it is the mistake of the customers to believe that dealers will pay automatically. It is the customer’s responsibility to take care that the dealer pays it off to the bank at the right time, which is before you purchase the car. If the dealer is not fulfilling (accepting) this request of yours then better refuse the dealer and don’t complete the deal.

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