How long does a car dealer have to pay off the loan for a traded in vehicle?
I traded in a vehicle to a NM auto dealer. They agreed to pay off the entire amount owed on the vehicle. It is now 30 days later and the dealer sold my trade-in to another customer but hasstill not paid off my lien. Is there a time limit the dealer has to pay for the vehicle? Is it legal for the dealer to sell my trade-in before they actually own it?
This all does not sound too good, especially for you as the loan is still in your name, correct? Did you write the agreement in to the contract for the sale of the new vehicle? That theywould pay off the existing loan? You have really hit the nail on the head when you bring up the issue of the transfer. The title is not clear here and so all these transfers without a clear title is very suspicious (I am assuming that the lien holder - the bank - is on the title, correct?). Anyway, I would have someone look at your contract for you and look in to the matter as soon as you can and before you incur any liability. Good luck to you.