Hi there's some new cars they advertise you can get for $400 month or something like that instead of paying full amount up front

my question is...what happens if you change your mind and want to stop the contract?

i assume they don't just take the car back?

Thanks

 

Maybe you should take that issue with the seller and read the contract before you spend your money?!?

 

You can’t stop the contract. You will probably have to sell the car privately and pay the owed amount to the original seller.

 

car payments are a horriable idea unless your reeaaaally well off. and its called financing a car, the simple fact that you dont know this is a thing, means you need to stay far from the option for now.

 

The only way to get out of the contract is to pay it off by selling the car for the amount owed or having someone take over payments.
It is usually worth less than what you have to pay off.
If you stop paying for it the car will get repossessed and ruin your credit.
Also there is a lot of fine print and that 400 payment usually ends up being way more. In the US they usually ask how much can you afford per month and make it a little more than that.

 

Unless you are renting with a no penalty stop at will never focus on the per-month cost of anything you are acquiring.

They don't take the car back if you don't want it anymore with no cost to you. They can reposes the car if you default, you will still owe them the money, plus accrued interest and they can take legal action to make you pay it.

At best a judge might give you some leeway and only allocate judgement against you for the interest, plus depreciation at the time of repossession but that is still going to be a substantial amount depending on the length of term and how long you've been in repayment before defaulting. Also the lawyer will cost you more than an average car to get to that point so unless you are buying exotics it doesn't make sense to go that route.

Your credit rating will also get trashed and depending on where you are they can even force repayment through garnishments or forfeiture and sale of assets. In some countries you can be incarcerated till the debt is payed off.

A car is not an investment, it is a depreciating asset that looses a large part of its value the moment you take possession of it.

Look at the total cost of the purchased item with all financing charges and interest if you don't feel comfortable with that sum walk away. My personal view on the matter is that any term over 60 months for a car is too long and if you can not afford that start looking for something less expensive. Negotiate the price of the car before even getting into monthly financials.

 

lets say you dont have money and either way, even if you have, if you accept 100.000 and at the end you pay 115.000 - 117.000 id say its okay, stay away if you pay more than 15% or so in the end, that matters!

 

You really need to talk to someone about this. Are you in the US? Are you very young? There are plans where you lease (rent) the car for set period of time. When you a buy a car and make payments you are borrowing money from a lending institution and paying them back, with interest. Interest rates vary between lenders and length of time you have to pay. Loans range from 3 years to ten years. Obviously the shorter the term the bigger the payment but you pay less interest in the long run. If this is all foreign to you, you REALLY need to talk to someone who can explain everything.