I have a friend who financed an older vehichle through one of those "buy here pay here" car dealerships. Well, the car sold for around $1800 and my friend was making bi weekly payments of about 100 bucks, so the car would be paid off in about a year. The problem is, after paying most of the car off (he still owes about 700 dollars), the car broke down. My doesn't want to keep paying for the car, so he went and bought another car for cash and told the dealer to come and get the car. Now this is where it gets tricky. The dealership went out of business and only operates out of a PO Box. The dealer is not responding to his request to pick the car up and my friend can only store the car at his apartment's parking lot for so long. He was told by the police department that he can't junk the car, because it has a lien. He can't sell the car, because it has a lien. He has to keep paying the annual registration on the car, because it's illegal to have a car sitting without being registered. Now, he thought about just paying the 700 bucks to get rid of this hassel, but he's afraid the car dealer will take the money and still not send him a lien release. What the heck is this guy supposed to do???
Is this car payment being reported to his credit? Has he been recieving any late notices? Also has he tried to send Cert. Return Reciept Requested Correspondance to this P.O. Box? I'm afraid to tell you to have him pay it off cause I feel like they won't give him title to the car. I had a friend that was making his payments on time and the place went out of buisiness and he never got his title after he paid it in full. (similar sitatution). If they won't respond to him via mail or call (after he sends them a notice) I would count on them NOT giving him title if he does pay it off. Another thing is maybe go to the Title and Reg. office and tell them the situation and maybe they have a suggestion as to what procedure he could follow? My guess is he will have to consult a attorney.
When did he stop making payments? Were they going to this PO box and being accepted? I wouldn't risk messing up credit over $700. Storage and registration can add up to that pretty quick, but I would be leery of paying it off. I would send a CRRR letter to the PO box to set up an appointment to pay off the car and receive the title and see if he gets a response. If nothing, most state's regulate car dealers of any kind. You might contact them.
