Everybody makes mistakes from time to time. I’m not an exception. Five years ago, I decided to buy a new expensive car (ugh, what was I thinking?). I used all of my savings, borrowed money from parents and took out a loan to buy my dream car. I was really in love with my new purchase…Heck! After three months it started to break down twice a month. My expensive car turned out to be a lemon. I desperately wanted to get rid of the piece of junk but I wondered what would happen to my car loan.
Scroll down if you were sold a lemon too.
Lemon Law in a Nutshell!
Stuck with your defective car? No worries! You might be covered under lemon laws. Even though lemon laws vary by state, under most state laws, the car must have a serious defect (that impairs the use, value or safety of the car) and continue to have the defect after a number of repair attempts in order to qualify as a lemon.
There are also time and mileage limits, so make sure to consult an experienced attorney in your state at the first sign of trouble because your rights will depend on the laws of the particular state where you live or where you bought the car.
If your car meets the criteria, you might be able to get a refund or a replacement vehicle.
What Happens to My Car Loan If I Was Sold a Lemon?
Bear in mind, even if you end up with a lemon, you will still have to keep making your payments until your case is resolved. If you hire a skilled lemon law attorney, he should be able to negotiate your lemon law refund and the loan balance payoff. Once that is done the manufacturer will payoff the loan and it will be reflected on your credit as a good incident (it is as if you had paid off your own loan). So the lemon law can somewhat even improve your credit score once the bank pays off the loan balance. But it is very important to continue making your purchase loan or lease payments while the legal process of “lemoning” your vehicle is in progress! If you do not make payments, your vehicle may be repossessed and you will either have to pay a lot to get the vehicle back or you might lose all the rights you have under the lemon law. In other words, you will risk your refund if the vehicle gets repossessed plus your credit will be ruined. Note that your loan is through the finance company and they are not responsible for the fact that your vehicle is defective.
Driving a Lemon? Contact a Lawyer Today!
If you believe that your recently purchased or leased vehicle is a lemon, don’t wait! Dial (818) 553-1000 for a FREE consultation right away. The skillful attorneys at The Margarian Law Firm will fight for your consumer rights and help you get rid of your lemon.