A PREGNANT mother of two traded in her old car for a bigger VW, racking up more than $26,804 on a new loan – but the dealership never paid it off.
After the dealership was unable to pay off the previous loan, they were left responsible for the remainder of the loan.
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Tina Kaiser traded in her Dodge Durango SUV for a larger Volkswagen Atlas at Volkswagen of Union in New Jersey in September 2019 after finding out she was pregnant with her third child.
She still owed more than $26,000 on the Dodge, so she took out a “rollover loan,” in which the dealership pays off the remaining loan balance, rolling it over to a new loan on the VW.
Two months after leaving in her new car, she discovered that the dealership had suddenly closed its doors for good.
The worst part was the lack of instructions on how to pay the loan.
Read more about dealerships
To make matters worse, the dealership never sent a check to the bank that issued the original loan, leaving it responsible for $26,804.
On top of her VW loan payments, she felt the financial pressure almost immediately.
“We’re not rich,” Kaiser told the ABC affiliate WABC.
“We cannot allow this.”
Kaiser also noted that his temporary plates expired just days after the story was published, and without the dealership sending his permanent plates, driving his VW would be illegal.
Therefore, she would be financing a car that she no longer has and another that she cannot drive.
Kaiser tried calling dealership executives but never got a response.
Another woman, Emily Bakerman, found herself in a similar position when she traded in her Jeep Grand Cherokee for a VW Tiguan.
She also opted for an extension loan, but was suddenly responsible for $24,936 after the dealership’s bankruptcy.
That’s when she asked WABC reporters for help.
When reporters learned of Kaiser’s situation, they went to the dealership, which was permanently closed.
Reporters contacted the bride company that was collecting payments on Kaiser’s original loan.
Tips for dealerships
Here are some expert tips when buying a car from a dealership:
- 1. Set your price: Make sure you have calculated your monthly budget before going to the lot. You must include your car loan payment, insurance costs, fuel and regular maintenance.
- 2. Research: Make sure you know which cars you’re interested in testing before you get to the dealership.
- 3. Pre-approval: Secure financing before going to the dealership. Dealerships may offer a better interest rate if they are competing with an outside bank.
- 4. Test: Drive before making any payments. Buying a car will be worth thousands of dollars – drivers should ensure they like the car’s drivetrain, steering and comfort before driving it off the lot
- 5. Haggle: Drivers should always try to negotiate the price. There are so many good cars on the American market – buyers have a strong hand in negotiating prices.
Source: Kelley Blue Book
After the phone call, the finance company agreed to stop collecting on Bakerman and Kaiser’s loans.
Additionally, the state agreed to issue Kaiser new temporary license plates to ensure she can legally drive her car until everything is resolved.
Volkswagen of America told the outlet it is working with the dealership and date to figure out a way to help customers affected by the closure.
The automaker wrote a statement advising customers to contact Customer Service or call (800) 822-8987.
This story originally appeared on The-sun.com read the full story
