topic Re: Dealer Buy Back Question... in Auto Loans

Dealer Buy Back Question...

xthatgamerguyx — Tue, 13 Nov 2012 15:51:31 GMT

I've searched around on here, and haven't found an answer so I thought I would ask.

I bought a Suzuki Kizashi in 2012. I'm not happy with the vehicle, and the current bank does not refinance. I received a high interest rate because of my low credit score, and have never been late on a payment :)

Anywho, with all the news about Suzuki leaving the US car business, I gave the dealership a call.

They offered to buy back my car and take care of the loan.

I started asking questions about the negative equity, and how the loan was paid off - the young lady said that I would owe nothing and that the loan would been satisfied. She said they would make a deal with the bank and give me 29 days to get another car else where.

She made it a point to say that that the buy back offer was not related to the Suzuki bankruptcy, it was just something they did for their customers.

Now doesn't really jive with me. The car had a low resell value to begin with, and now with the recent announcement - it's even lower.

With me owing $24K on the car, and expecting at least $5K-$7K negative equity, how is that resolved? I know the dealership isn't going to do me any favors - someone will have to take a hit some where.

I asked her if they expected me to purchase a vehicle there, and she said "no" that would be a trade and not a buy back.

So is this a ploy to get me back into the dealership, and into another endless loan?

All opinions are welcome. Thanks!

Re: Dealer Buy Back Question...

Cadillac-XTS — Tue, 13 Nov 2012 17:39:01 GMT

Good question

Re: Dealer Buy Back Question...

Walt_K — Wed, 14 Nov 2012 11:55:13 GMT

Weren't dealerships offering something like this during the worst part of the financial meltdown? They would buy back your car if you lost your job or something like that? I think I remember offers like that to try to make people more comfortable buying cars. Maybe they have a similar, but less restrictive program, i.e., you don't have to lose your job to take advantage of it. No specific experience, so I can't say.

Re: Dealer Buy Back Question...

sccredit — Wed, 14 Nov 2012 17:55:56 GMT

I think if you can get them to agree, in writing, that they agree to purchase your vehicle for your loan balance I would pursue it. I had a Saab when they went bankrupt and my value dropped in half overnight. Luckily it lasted until it was paid off and then it got sold!

Re: Dealer Buy Back Question...

webhopper — Wed, 14 Nov 2012 22:18:47 GMT

I found a news article which mentioned Suzuki buyback agreements:

http://www.canadianbusiness.com/article/105491--clarification-american-suzuki-bankruptcy-story

Apparently Suzuki intends to honor all buyback agreements currently in place with financial institutions... (Dont know exactly what that means but at least it helps get a little of that fishy smell out of the deal)

Re: Dealer Buy Back Question...

xthatgamerguyx — Thu, 15 Nov 2012 13:19:42 GMT

Thank you kindly. I read an earlier revision of that article - but this one is a bit different.

Appreciate it!

I'm intrugued by, " It also will honor all buyback agreements currently in place with financial institutions" as you mentioned.

Can anyone shed any light on that?

Re: Dealer Buy Back Question...

dalleanne — Thu, 06 Dec 2012 02:49:33 GMT

Hmm, thanks for posting that artcle, I intend to trade in my SX4 tomorrow if I can get a good deal on it. Good to know that the crossover was its best seller..

Re: Dealer Buy Back Question...

xthatgamerguyx — Thu, 06 Dec 2012 19:02:33 GMT

I've haven't had time to go into the dealership to see about their offer.

dalleanne - did you have any luck?

Re: Dealer Buy Back Question...

dalleanne — Fri, 07 Dec 2012 01:00:40 GMT

xthatgamerguyx wrote:
I've haven't had time to go into the dealership to see about their offer.

dalleanne - did you have any luck?

I made out ok =) they took my trade in for a decent value and I was approved for a 2% loan and some rebates. It does kind of worry me that the company is going out of business but I've owned a Suzuki before and I know it will at least outlive my loan. I picked the Kizashi btw..