Did you ever trade in a vehicle that you still owed money on? Then you need to hear this warning from one car buyer.
Mark Hoffbauer was the happy owner of a brand-new truck until he learned his old SUV had not been paid off, and he started getting threatening notices.
“I traded the old Explorer in that night and was told they would do the payoff the next day,” he said.
Two months after trading in the Explorer for a new F-150 pickup, Hoffbauer says, “I received a letter in the mail and a phone call from GE Credit Union saying it had not been paid.”
But he says the dealer had promised to immediately pay off the $15,000 he still owed.
“They said you are late, I said I don’t have it, I traded it in.”
So, he called the dealer and says he got the run-around.
“They told me the check was in the mail, so we waited, called again a week later, and they again said the check’s in the mail,” he said.
We called the dealership owner, who apologized, blaming a paperwork mix-up where the payoff was never mailed. He said it would be sent immediately.
Hoffbauer now worries about his credit score. “Yes, every day,” he said.
Don’t let this happen to you.
The Consumer Law Group says:
– Never trade in a car a week before the monthly payment is due. Wait until right after.
– Check your lender 10 days later to make sure it was paid off.
– But ideally, pay off your old vehicle first.
“I just want them to pay off the loan and that’s it,” Hoffbauer said.
As always, don’t waste your money.
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