I really hate to say it, but some people have scores in the low 500's for good reason. CLEARLY, you need to turn off your computer RIGHT NOW and go return that new car RIGHT NOW. If you try to wait out the 3 days to the minute, you will surely submerge in the swirling waters that are in the toilet as you flush and try to swim at the same time. If I sound harsh, it's only because I've been there. I agree with Marci, you must deal with the older Toyota. Spend two grand fixing the old one up to complete par and drive it for another year while you work on solidifying your savings reserves and correcting your credit errors. If you desire to build your score in 2002 you must cleanse your perspective on how to use credit. I say this to you sternly but with love.
Erica: Thanks for your comment. But, I have read numerous times from financial gurus who write on this issue that the 3 day right to rescind to a common misconception and that most contracts do not have a three day right to rescind. I am not picking a fight, but would like to hear from someone who has the real answer. You and I are speaking only from what we have heard so I don't know who is right or wrong.
The 3 day right to recind really has more to do with the laws of your state. But you need to rush down there and cry the BLUES as you back completely out of the deal. They (at the dealership) will whine, piss, and moan, they'll be angry, they will try to shame you into keeping the car, they will try to force you to keep it. Hopefully there is a law that can protect you because in your particular situation, you really MUST return it. TODAY. And make sure you get written documentation that they accepted it back and the deal has been completely recinded. Otherwise you can expectly a deadly voluntary repo to hit your CRA's and that is worse than BK. For more info re: the consumer laws that concern automotive purchases in your state go to http://clarkhoward.com
Awwww, that WAS harsh but true. I did return the vehicle and will try to exercise better credit judgement in the future. They were a great group of guys to work with and were understanding about my situation. They still stated that they could not take my car in trade because of the amount owed. So Betsy (my car) and I left. Don't get me wrong, though, they did try to persuade me otherwise but there was no hard pressure. Thanks for the advice.
You did the right thing drmgirl6, but please tell me you got clear written documentation that they accepted the vehicle back in perfect untitled new and resaleable condition and that your finance deal has been completely recinded...
For future reference....any car dealer that would let you drive off with 2 car loans like that is insane, and I wouldn't do business with them again. Some Finance Manager. BTW, I would make sure that the loan never shows up on your reports and if it does, not as a repo....
Erica, I think you hit the nail on the head. Not meaning to pile on here but, a 535 FICO and a BK I'm willing to bet a cookie that the F&I manager violated the company underwriting standards. When you apply for a secured loan and list assets and liabilities, the lender has a fiduciary obligation to be certain you can handle the loan. I know of a couple of guys that pulled their kids out of jams like this by suing the dealership and the finance arm for violating their own lending policies.
dmgirl, you need to network around and find a good local "garage" mechanic. A garage mechanic is somewhere you wouldn't take a new car. These folks who work on a specific type of car, in generally ghetto parts of town will save you so much money its not funny. Never go to pep boys, dealers for any auto repairs (That includes breaks or oil changes). Find a local garage-mechanic.. I'm sure you can network around, or find a toyota message forum and locate one. I was quoted $5K to repair my motor from the dealer once, i ended up paying $800 to put a used one in and it ran for two more years. The guy even fixed a bunch of other stuff Free since we were cool. This is where "man-friends" come in handy, they know folks who know folks who are friends... seriously if you are smart enough to come to this message board, you are smart enough to find a good local mechanic who won't screw you (automotive work i mean) over.. g'luck
Actually, you got very lucky. There is absolutely NO '3 day rule' on vehicle purchases, no matter what State you live in. I am sure I heard that one a million times. I even saw a person buy a $30,000 conversion van on a Friday night, take his family on vacation for the weekend, and try to return it on Tuesday with 1400 miles claiming it was within his '3 day time limit'. The 3 day 'Right to Rescind', also known as the 'cooling off period', does exist- but not for auto sales. Not for most sales, actually. You have three days (according to the FTC) to cancel any contract for $25.00 or more IF (and only IF) you are solicited at your home or away from the sellers place of business. 'IF" you were to have bought the car at an off-site location, such as the dealers house, you may have had a case....but I have even seen those stick. The three dale rule also applies to Health Club Memberships, loans where your personal home is used for collateral, and charity. Thats basically it. Another big factor at play here was the fact that once the Dealer turns in the title-work, the car is 'used'. No matter how few miles, etc, it is a used car and cannot be labeled any differently. Now, I know someone will say 'What about Demo's?'. Well, Demo's are never titled. They are just new cars driven by employees- employees who are taxed on the 'usage' of the car as part of their salary. A Dealer demo does not cost the Dealer any 'less' than any other car on the lot. Sure, you can usually get a bette deal on the as they are usually willing to take a small loss, but nothing else special applies. The title-work has to be turned in very quickly in most States- usually within 48 hours of the sale. Both the DMV and the Dealers Finance Company require this. Luckily, your Dealer had not done this yet. If he had, he would have had to take a loss when he re-sold the car as used. If you still had a hefty car payment on the first car and there are more cars than drivers in your family, they may still have been working on financing. If thats the case, it would have been relatively easy to turn the car in. You really need to realize how lucky you were. So do the other posters who might count on this happenening for them. Trust Me- This Does NOT Happen. 1 in a million....definately had someone watching over you. You have a chance to back out after you sign, even a slim chance once you are handed the keys and your copy of the paperwork, but once your 'ass is over the curb'- meaning you are off Dealer property- the car is sold. No returns. No changing your mind. No take-backs , infinity, plus one. Shawn
