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Regular Contributor
xthatgamerguyx
Posts: 118
Registered: ‎07-22-2012
0

Dealer Buy Back Question...

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 :smileyhappy:

 

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!

February 2012: 480 across the board (before I found this site and started working on my scores)
-------------------------------------------------------------------------------
Starting Scores: TU FAKO: 543 (06/16/2012) EX FAKO: 547 (06/16/2012) EQ FAKO: 528 (06/16/2012)
Current Scores:TU FICO: 639 (11/20/2012) EQ FICO: 617 (11/20/2012)
TU FAKO: 606 (8/30/2012) EX FAKO: 574 (09/04/2012) EQ FAKO: 564 (09/30/2012)
Established Contributor
Cadillac-XTS
Posts: 1,837
Registered: ‎08-20-2012
0

Re: Dealer Buy Back Question...

Good question

Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: Dealer Buy Back Question...

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.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Valued Contributor
sccredit
Posts: 1,116
Registered: ‎09-14-2012
0

Re: Dealer Buy Back Question...

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!

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Moderator Emeritus
webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: Dealer Buy Back Question...

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)

 


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Regular Contributor
xthatgamerguyx
Posts: 118
Registered: ‎07-22-2012
0

Re: Dealer Buy Back Question...

[ Edited ]

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?

February 2012: 480 across the board (before I found this site and started working on my scores)
-------------------------------------------------------------------------------
Starting Scores: TU FAKO: 543 (06/16/2012) EX FAKO: 547 (06/16/2012) EQ FAKO: 528 (06/16/2012)
Current Scores:TU FICO: 639 (11/20/2012) EQ FICO: 617 (11/20/2012)
TU FAKO: 606 (8/30/2012) EX FAKO: 574 (09/04/2012) EQ FAKO: 564 (09/30/2012)
New Contributor
dalleanne
Posts: 51
Registered: ‎07-26-2009
0

Re: Dealer Buy Back Question...

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..
Regular Contributor
xthatgamerguyx
Posts: 118
Registered: ‎07-22-2012
0

Re: Dealer Buy Back Question...

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

 

dalleanne - did you have any luck?

February 2012: 480 across the board (before I found this site and started working on my scores)
-------------------------------------------------------------------------------
Starting Scores: TU FAKO: 543 (06/16/2012) EX FAKO: 547 (06/16/2012) EQ FAKO: 528 (06/16/2012)
Current Scores:TU FICO: 639 (11/20/2012) EQ FICO: 617 (11/20/2012)
TU FAKO: 606 (8/30/2012) EX FAKO: 574 (09/04/2012) EQ FAKO: 564 (09/30/2012)
New Contributor
dalleanne
Posts: 51
Registered: ‎07-26-2009
0

Re: Dealer Buy Back Question...


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..


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