How Can I Force CarHop to Take Back My Car and Cancel the Loan?

Question:

Dear Steve,

I have a 2008 Chrysler Sebring I bought from CarHop that is in every way a piece of junk. I haven’t driven it in over 3 months as the transmission is out after getting replaced just recently. I want out of the loan, I mean out. I want them to take back the car and close the account on our credit report.

How can I force CarHop to take back the car and close the account on our credit report?

Robert

Answer:

Dear Robert,

You have a few choices on how to deal with this.

  • File Bankruptcy – You have the legal right to hand the car back to the lender and file bankruptcy to terminate any further obligation on the car and loan.
  • Lemon Laws – Your state may have a tough Lemon Law that may provide you some recourse with the seller. Federal law has some rules regarding express or implied warranties. In fact just today I saw a lawsuit by someone against their car dealer claiming a violation of the Magnuson-Moss Warranty Act. I would advise you to find a lawyer who is licensed in your state for assistance. One place to look is here.
  • Negotiate With Seller – You can always attempt to resolve disputes with the seller directly and see if you can come to an acceptable compromise to deal with the solution.

If you just get mad about the situation and stop making the payments or hand the vehicle back the lender will most likely sell the vehicle at auction for a small amount and then sue you for the balance due on the loan. They can go for a judgment and wage garnishment.

There is no pain-free or easy way to deal with the situation. There certainly is no process that will let you hand the vehicle back and have the transaction removed from your credit report.

However, bankruptcy may be the least expensive way to get maximum legal protection quickly and for a reasonably affordable cost overall.

You can click here to find a local bankruptcy attorney and talk to them for free about your specific situation. Get the facts and then you can make an informed and educated decision if bankruptcy is right for you.

Steve Rhode
Get Out of Debt GuyTwitter, Facebook

If you have a credit or debt question you’d like to ask, just click here and ask away.

This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.