My dealership closed after I bought a car – I’ve never missed a payment but fear it will be taken at any moment

CAR buyers have panicked after the dealership they bought their car from suddenly closed down – many feared their car would be repossessed.

Without a reliable way to pay their car loan, many assumed the worst.

News 19

News 19

News 19

American Car Center, a used car dealership in Huntsville, Alabama, closed without warning last year.

Many car buyers financed new cars through the company, and with the closure and no instructions on how to pay, many feared they’d face severe consequences from missed payments.

Even if it wasn’t their fault, they missed a payment.

Brandy Hardic bought a car from the dealership and expressed her ultimate fear of the car being repossessed.

“I’m nervous. I’m terrified of what’s gonna happen,” she told CBC affiliate WHNT .

“Are they gonna take our car? Are we gonna be liable for late fees or anything else?”

Looking at the worst-case scenario, Hardic said her family would not be able to afford another car.

“We can’t afford to put a down payment on another car. We can’t afford extra payments,” she continued.

“We’ll have to keep insurance on this vehicle. If they decide they’re not taking our money, what do I do when it comes time to renew our tags? It’s stressful.”

This isn’t the first time drivers have been left scrambling when a used dealership suddenly closes without leaving instructions on how to pay their loans.

Hunter Allen and 34 other drivers were shocked when ByrdDawg Motors in Idaho closed without informing those who financed vehicles through them.

Allen and the other drivers participated in a lawsuit against the dealership, which subsequently lost its license after it was discovered that it never issued titles to buyers.

The other drivers were paid out, but Allen was only awarded a few hundred dollars, leaving him with $20,000 to pay for a car he didn’t officially own.

In Hardic’s case, she saw a little relief when American Car Center posted an update to their website a few days after the closure.

The website gave drivers instructions on how to make loan payments online, or they could call a phone number.

Tips on buying a used car

When looking to buy a used car, U.S. News & World Report experts have a few tips before walking onto the sales lot.

1. Set a realistic budget. Some cars are more expensive to insure and register than others depending on engine type, body style, weight, and the amount of doors. Before being swindled by a crafty salesman, it’s important to know what you can and can’t afford.
2. Researching what car would fit best into your lifestyle can save a lot of time. Would a sedan work better for your garage or narrow street? Would a truck meet hauling or towing needs? Knowing what suits your needs can narrow down your options.
3. Look into certified pre-owned cars. Certified pre-owned cars are backed by the manufacturer and come with comprehensive warranties at affordable prices. Some manufacturers have better deals on CPO cars, so research diligently.
4. Not all financing options are created equal. Depending on where you look to finance, if that’s on the table, be very careful about who you finance with. Your best option would be to get preapproved by your bank before going in to give you an idea of what rates are affordable, and to give a dealership incentive to meet or beat those rates.
5. Consider a used car inspection. Depending on where you’re buying a vehicle from, you can opt to pay roughly $200 for a used car inspection to have key components examined by an expert.
6. Consider a vehicle history report. When things get close to signing, buying a vehicle history report based on the VIN can help clarify the previous owners, maintenance records (if it was taken to a dealership), title status, and more.

Source: U.S. News and World Report

There was even an option for drivers to bring a physical check to a specific location.

However, some drivers remained wary of the new payment system.

An attorney told drivers to always have the payment amount saved somewhere secure.

“Someone is going to own these debts and receive possession of the titles and they, at that point will reach out they’ll get a list of all the people,” said attorney Russell Crumbley.

A solution would present itself soon, Crumbley said, as financial institutions would be eager to collect payments.

“They’ll reach out and give instructions on how to resume their payments. And ideally, if it’s four months from now if you owe that money, you’ve got it set aside four months’ worth and it won’t come as a hardship. You’ve planned for the payment. Make the payment, just set it aside.”