Negative on credit report

Read the terms of your contract.

As travathian said, what does your contract say? Did you even read it before signing it? Based on your post, I would assume not.

Many sleazy Buy-Here-Pay-Here lots don't allow your to prepay your 'loan' without covering all the interest payments for the life of the loan. Which would explain why he wouldn't let you simply pay the remaining principle.

The fact that you bought from one of these places, let alone were willing to spend over $5k on a 13 year old crappy car with "high mileage" indicates you don't have very good financial sense. These places stay in business because people like you are willing, or forced, to use them. And they will take advantage of you every way they can.

The fact is, you agreed to pay $5,343.09 for the car, you gave them $750, and then chose to break the contract an return the car. Of course they accepted it back and kept the $750 deposit. You effectively paid over a $1500/month rate. They can then take that car, and resell it to someone else for the same price. Rinse and repeat. This is how many make money - by setting up rediculous payments they know you can't afford and they can keep reselling the same car over and over again. But in the end, you broke the contract and they reported the repo on your report. Because they DID repossess it. Just because they didn't come in the middle of the night and take it doesn't mean it wasn't a repossession.

Next time:
1) Don't do business with shady companies.
2) READ YOUR DAMN CONTRACT AND UNDERSTAND IT BEFORE SIGNING.
3) Don't overpay for a crappy car.
4) If you could put together $4750 in two weeks, you should have bought a car for cash.

At phonic, you stated "And they will take advantage of you every way they can". So we shouldn't fight for what we believe in, regardless of contract. Contracts CAN be broken. Even the government will "forgive" student loans. Read up on that!!! Since obviously you don't know that. And yes, I did read the contract on the car. I would not had gone to any of those "buy here pay here" if the larger dealers and banks were more helping us folks. And I DO have enough financial sense to not have any mortgage on my home. Which mostly likely you do.

And note that I did not use the D word or any cuss words in neither of my postings. Some people might be offended, like me.

Quote from LittleChloe : At phonic, you stated "And they will take advantage of you every way they can". So we shouldn't fight for what we believe in, regardless of contract. Contracts CAN be broken. Even the government will "forgive" student loans. Read up on that!!! Since obviously you don't know that. And yes, I did read the contract on the car. I would not had gone to any of those "buy here pay here" if the larger dealers and banks were more helping us folks. And I DO have enough financial sense to not have any mortgage on my home. Which mostly likely you do. And note that I did not use the D word or any cuss words in neither of my postings. Some people might be offended, like me.

This is the first post in a while that actually made me laugh out loud.

First, phonic 's post was admittedly rude. However, reading past the demeanor, his content was true.

Going through life, let alone a financial deal, with the feeling that you can break your word (or a contract) is what I would call a significant problem with our world. If you broke the contract, you deserve the consequences. Our government may break deals, but they accept the consequences and have the clout to back up their assertions. In regards to student loan forgiveness (which I'll note now that I disagree with completely), is aimed at alleviating an issue created by a generation which came before those with the debt being forgiven. I don't like it because I believe that we should suffer the consequences for the choices we make, but the majority of our electorate believes it to be a proper response to a dire situation.

The larger dealers and banks are helping people just fine. If an individual doesn't meet the requirements to buy a car, they shouldn't buy it. Guaranteed lending departments exist everywhere and get people financed, but they shouldn't. There are ways for individuals who cannot afford their own car to live. While it isn't as convenient to find other methods of transportation, they are available.

As to the comment on not having a mortgage... ugh... This is terrible advice. Depending on your overall circumstances, a mortgage is typically the best thing for you. It is a lower rate than most other financing you'll get. It is often a much lower rate than you'd earn on modest investments. The interest is tax deductible. If you're buying an older vehicle, a home equity line of credit is a better choice. The rate will be lower, the interest is tax free, etc. Paying off a mortgage early typically makes no financial sense unless you have an extreme amount of excess cash.

Quote from LittleChloe : Contracts CAN be broken.

They CAN be broken... and you CAN send me $1300. Are you going to do that? No? Why not? Its basically the same as you wanting them to break the contract and let you out of $1300.

Basically it was a repo. You broke the contract, they had to repossess the car (even if they didnt have to send some fat guy in a tow truck to do so), and you will and should get dinged on your credit for it.

Lesson learned. I would be thankful the dealer didnt take your $4K cash and still not let you out of the contract and say you still owed $1300 THEN repossessed the car when you didnt pay that

Quote from LittleChloe : At phonic, you stated "And they will take advantage of you every way they can". So we shouldn't fight for what we believe in, regardless of contract. Contracts CAN be broken. Even the government will "forgive" student loans. Read up on that!!! Since obviously you don't know that. And yes, I did read the contract on the car. I would not had gone to any of those "buy here pay here" if the larger dealers and banks were more helping us folks. And I DO have enough financial sense to not have any mortgage on my home. Which mostly likely you do. And note that I did not use the D word or any cuss words in neither of my postings. Some people might be offended, like me.

I'm sorry, but by saying "And I DO have enough financial sense to not have any mortgage on my home." just proved you have zero financial sense.

The reason why you had to go to a buy-here-pay-here lot is most likely because you are going through life with the philosophy that "contracts can be broken". Based on your post, it looks like you are already planning on (if you haven't already) defaulting on your student loan(s) as well. Great, so I guess myself and the other tax payers get to pick up that bill for you too.

And for the record, fighting for what you believe in would mean not doing business with shady companies. To agree to do business with them, fully understanding the terms of your contract (according to you), then breaking the contract and being upset and shocked that they held you accountable, is not fighting for what you believe in - it's just making you more of a credit risk.

Quote from Formless : This is the first post in a while that actually made me laugh out loud. First, phonic 's post was admittedly rude. However, reading past the demeanor, his content was true. Going through life, let alone a financial deal, with the feeling that you can break your word (or a contract) is what I would call a significant problem with our world. If you broke the contract, you deserve the consequences. Our government may break deals, but they accept the consequences and have the clout to back up their assertions. In regards to student loan forgiveness (which I'll note now that I disagree with completely), is aimed at alleviating an issue created by a generation which came before those with the debt being forgiven. I don't like it because I believe that we should suffer the consequences for the choices we make, but the majority of our electorate believes it to be a proper response to a dire situation. The larger dealers and banks are helping people just fine. If an individual doesn't meet the requirements to buy a car, they shouldn't buy it. Guaranteed lending departments exist everywhere and get people financed, but they shouldn't. There are ways for individuals who cannot afford their own car to live. While it isn't as convenient to find other methods of transportation, they are available. As to the comment on not having a mortgage... ugh... This is terrible advice. Depending on your overall circumstances, a mortgage is typically the best thing for you. It is a lower rate than most other financing you'll get. It is often a much lower rate than you'd earn on modest investments. The interest is tax deductible. If you're buying an older vehicle, a home equity line of credit is a better choice. The rate will be lower, the interest is tax free, etc. Paying off a mortgage early typically makes no financial sense unless you have an extreme amount of excess cash.

I wouldn't say rude, I would say more to the point and tough. The two posts by LittleChloe prove that she has no idea how the world works, and yet thinks it owes her something. People like that are a key reason why we are in the financial crisis we are right now. Sure you can blame the banks for being greedy and sleazy with their loan practices, and I certainly think a lot of blame is pointed their way, but the idiots who signed mortgages for $500k homes when they only make $30k/year are just as much to blame.

And don't get me started on the whole student loan business. Ever since the whole "everyone should go to college" philosophy came around with guaranteed student loans, every schmuck in the country saw it as free money to blow - "I'm gonna get me sum edumacation". And as a result, we have hundreds of for-profit specialty schools (technology, culinary, mechanical, etc.) that are taking advantage of these idiots, giving them a worthless piece of paper in exchange for $50k+ in student loan debt they can never hope to repay. And it's even worse at the real colleges/universities since, with this huge influx of new "college students", the ones that actually should be going to college might not be able to, because the tuition costs have been jacked up so high with all the competition, they can't afford to attend. The fact is, some people just aren't cut out for higher education, and to make them think it's a right is just causing problem after problem.

So while I might come off as rude, my points are still valid. I simply don't like coddling these people. They need to wake up and realize the world doesn't owe them anything, isn't fair, and they need to start taking responsibility for themselves.

</rant>

Quote from phonic : I'm sorry, but by saying I wouldn't say rude, I would say more to the point and tough. The two posts by LittleChloe prove that she has no idea how the world works, and yet thinks it owes her something. People like that are a key reason why we are in the financial crisis we are right now. Sure you can blame the banks for being greedy and sleazy with their loan practices, and I certainly think a lot of blame is pointed their way, but the idiots who signed mortgages for $500k homes when they only make $30k/year are just as much to blame. And don't get me started on the whole student loan business. Ever since the whole "everyone should go to college" philosophy came around with guaranteed student loans, every schmuck in the country saw it as free money to blow - "I'm gonna get me sum edumacation". And as a result, we have hundreds of for-profit specialty schools (technology, culinary, mechanical, etc.) that are taking advantage of these idiots, giving them a worthless piece of paper in exchange for $50k+ in student loan debt they can never hope to repay. And it's even worse at the real colleges/universities since, with this huge influx of new "college students", the ones that actually should be going to college might not be able to, because the tuition costs have been jacked up so high with all the competition, they can't afford to attend. The fact is, some people just aren't cut out for higher education, and to make them think it's a right is just causing problem after problem. So while I might come off as rude, my points are still valid. I simply don't like coddling these people. They need to wake up and realize the world doesn't owe them anything, isn't fair, and they need to start taking responsibility for themselves. </rant>

Trust me - we are in complete agreement.

Quote from LittleChloe : At phonic, you stated "And they will take advantage of you every way they can". So we shouldn't fight for what we believe in, regardless of contract. Contracts CAN be broken. Even the government will "forgive" student loans. Read up on that!!! Since obviously you don't know that. And yes, I did read the contract on the car. I would not had gone to any of those "buy here pay here" if the larger dealers and banks were more helping us folks. And I DO have enough financial sense to not have any mortgage on my home. Which mostly likely you do. And note that I did not use the D word or any cuss words in neither of my postings. Some people might be offended, like me.

While I won't comment on the car purchase that you have made, I'd just like to say that if you have this mindset, I can tell you right now that your credit report will not get better.

This is probably not what you want to hear, but the credit report is designed precisely so that the lenders can avoid non-payments. If you have a debt, you have to pay it. Simple as that. If a lender gets a non-payment, they write it off as bad-debt and sell it off to a collection agency, in which they will probably get about 20 to 50% on the dollar. Eventually, the collection agency will get tired and stop asking for the money. Then it takes 7 years to clear it from your credit report. So you want to talk about forgiveness on debt ? You can definitely be forgiven. It takes a while though.

If you really want to fight with the dealer, your best bet would be to file against them in the small claims court. Then again, your chances of winning are very slim and this is probably a waste of time. You signed a contract, after all. All in all, treat the experience as a lesson and try to not simply sign a contract if you're not sure you can abide to it.

Good luck!

Quote from LittleChloe : So we shouldn't fight for what we believe in, regardless of contract. Contracts CAN be broken.

Your beliefs mean absolutely nothing in the world of contract law. And you are absolutely right, contracts CAN be broken. And when they are, said contract usually stipulates the penalties for doing so. Your penalty in this situation is paying money AND getting a ding on your credit report for a repo. Case closed, move along.

For someone who claims to be so financially knowledgeable, you have shown a total and utter lack of it in your postings here and in your financial dealings recently. Might want to look in to that.

dispute it with the the credit people

http://articles.latimes.com/2011/...rt1-storyb


http://news.firedoglake.com/2011/...loan-scam/

People are so quick to assume the wrong things

I never said it was "me" who had ANY student loans. I have NONE
I don't have a mortgage because I have enough financial sense to know I can not afford those payments too. So, I still hold a clear deed to my home.
I don't believe I'm owed everything. And do know how the REAL world works. I would be 6ft under if I didn't.

Don't assume so quick

Wow, a dealer rating of D- and you still went there? lol...

Anyhow, unless the contract said that early payoff was prohibited you could have paid it in full. However, by giving back the car, that is a repo. You could have dealt with it at the time, but it's too late now.

If I made someone a deal on a car under the stipulation that I would make money off the interest, and an hour later they wanted to pay me in full, I would be pretty pissed. If it's in the contract, then yeah you owe it. You can't just assume that because you offered full payment that he has to accept it.

Even upstanding dealerships will put a "early payoff" penalty in under some circumstances.

Quote from Serus : Even upstanding dealerships will put a "early payoff" penalty in under some circumstances.

Upstanding dealerships don't really finance things "in-house". They use third-party finance companies. While they might be directly affiliated with the parent company (ie: GM Finance, VW Finance, BMW Finance, etc.), they are still technically independent from the actual dealership. And I've never heard of any of these companies putting in early payoff penalties.

The dealerships that do offer in-house financing are generally much shadier businesses. And the interest rates are always higher. Even some dealerships that offer real financing might steer people towards their own so they can rape them in fees and interest.

Long story short, if you see a financing agreement with an early payment penalty - run.