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Home >> Lending >> Vehicle Loans
Car Loan Troubles
I traded in my old car which still has a loan, for a new car. The dealership said they will pay off the loan on my old car. After two weeks I called up the bank to check if the dealership already paid off the loan. The bank told me the loan has not been paid, and that I must continue paying monthly payments.
Now I am stuck paying two car loans, one for the old and one for the new. How long does it usually take for the dealership to pay off the old car loan? Is there any way I can expedite this process?
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 It could be an oversight, but it shouldn't be common. First, call the dealership and ask about this. Tell them the payoff may be changing soon and they should be satisfying the debt in full since you gave them the car. They should have this taken care of very fast. You don't want your payment date coming and going without a payment. Your bank will want to be paid and you'll have to deal with the credit report headaches if they aren't.
If you do make another payment, tell the dealership they need to give you that money. Again, they have the car and the deal was done.
Next, stay in touch with your bank. Ask them to notify you when the loan is repaid. You won't get the title, but (depending on state law) you should get your loan contract back, stamped "Paid." If you don't hear from them within a few days prior to the due date, call that dealership back and ask for someone in the "F&I" department. These are the finance folks who want the paperwork done so they can sell your car when they have a buyer.
Published on BankingQuestions.com 7/25/07
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