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I purchased a used vehicle almost 2 years ago and it was breaking down so i decided to turn it in. I was pre-approved through my credit union for $20,000 at 100%. My current loan is upside down by like $3,000. We were sold a 2009 ford flex they had us sign a contract at 23% until they get payment from our credit union. Well the credit union does not want to pay the loan because of the upside down. The dealer said don't worry we will find you a bank that will finance you. Well they did at 24%. This is outrageous I declined and said I wanted my car back well they said my car was already sold at the auction. They want us to come in today and discuss numbers. I do not know what to do as I do not want to be stuck with a loan I cannot afford. What can I do help? by the way I have a Fico score of 600 I know terrible..Help please thank you.

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    Sounds like you need to pay down the loan by $3000 to eliminate the gap and try again.
    – JohnFx ♦
    Commented Sep 18, 2014 at 15:08
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    You signed a contract for a significant loan with an interest rate of 23%?!?
    – ChrisInEdmonton
    Commented Sep 18, 2014 at 15:15
  • I would contact Clark Howard's staff. They have people ready to answer calls for 9 hours a day, every weekday. Going forward you need to save money as a down payment for a car so that you are never upside down on the car, during any portion of your ownership of the car.
    – Mark Monforti
    Commented Sep 18, 2014 at 15:21
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    Pre-approval is not approval and is not binding; it exists for convincing sellers that you're serious, and it may or may not come with a rate lock-in, but does not guarantee that you will be able to get any specific loan. You should have waited until you had commitment on the loan financing before signing over the old car or signing on purchase of the new one. At this point, all I can suggest is paying your way out of that loan as soon as possible or going to one of the agencies that specialize in helping folks who have gotten into impossible loans. Next time, buy cheap, or save first.
    – keshlam
    Commented Sep 18, 2014 at 19:32
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    This question cannot be answered in its present condition. Lots of details need to be spelled out in order for anyone to even determine what exactly happened. I recommend putting it on hold pending revision by the OP.
    – Dilip Sarwate
    Commented Sep 20, 2014 at 3:05

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First of all...never accept a loan where you are upside down. Ever.

Next, contact your state attorney general and see if they broke any laws regarding the sale of your trade-in before they actually finished with the "sale." If you can make a valid argument that you did not think the transaction was completed then the dealership may be on the hook to reimburse you for the value of the trade-in (which might be enough to alleviate the upside down situation.)

Before you worry about lawyers, though, call the dealership and explain that you feel like you were wronged and that you're going to call the AG. They may be willing to make you a deal to avoid the hassle.

You can also call your local investigative reporter and get them to make a stink about it on the local news or the newspaper.

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    Agreed, 1) do not agree to a 24% loan period and 2) I hope you are not paying 20k for a 2009 Ford Flex.
    – treeNinja
    Commented Sep 22, 2014 at 21:44

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