Auto Finance Problem

Auto Finance Problem

August 15, 2005

A few years back my wife and I decided to purchase a used car. Our payments were $350 per month due to our poor credit, but we made the payments on time for about 3 yrs. I began noticing newer, same kind, of cars being offered for more than our balance was on a 5 yr older one. We thought we should try to see if we could turn our $350 pm into payments on a newer car. Salesman ended up saying the only way would be to lease instead of buy. We ended up doing so, not really knowing how leasing works. We were 3 months into the lease when my wife lost her job. We had to make major cuts in our budget and our biggest one would be the car payments. I called to get my options and was told to try to find someone to take over the lease. Therefore ran an ad in our local paper for 10 days with no luck. Was also told that if we returned the car it would be sold at auction and we would be responsible for the balance. They told us we would be informed of where and when the auction would be held. They did not do so. The next thing we know, we are recieving a bill from GMAC for $7,700, which is about what we still owed on our first car. We did not just give our car away and still have to make the payments on it. We are now left with no car and a bill of $7,700. I feel if we pay this, we should be paying it towards something instead of nothing. What do you suggest I do about this situation? Click this link to e-mail the message author: Email User