Paying off a car early.

[Joebelle]

I like a nutter, purchased a brand new car, figuring I had no more children college tuition, I got stuck with a lemon. I know the car has devalued by a tremendous amount, so I want to pay the loan down early so once I meet that point I can dump this horror of a car. I have only owned this 2009 car for 2 months. Yikes.

I have never done business with GMAC and never will again. I asked if there was a pre payment penalty and they said no. So I called GMAC and asked if I sent X amount extra for principal only payment, when would it be paid off? Well, they could not tell me that. They also told me that even though I wanted all of the money to got to principal, they would still have to take out daily rate of interest for every day after my monthly payment. UMMM. The only option was to call in the payment and pay a fee from a 3rd party collection agency and do it on the date of the car payment. Then all would go to principal. This sounds an awful lot like a prepayment penalty, or even usery. Both are illegal.

Any help anyone??? Thanks.

[mhastings0331]

Here is an option that you may or may not have considered. If you purchased the car brand new, and the car qualifies as a lemon under your states laws, the dealership/car manufacturer that you purchased the car from, at non cost to you, should replace the car with a new and working vehicle.

In addition, your car being a 2009, should still be under full bumper to bumper warranty, assuming that you have not reached the mileage limits for this warranty, in which case a powertrain warranty should still exist. If there is a bumper to bumper remaining, you are entitled to a repair by an authorized dealer for you make/model of vehicle, at no costt to you, and the duration of the repair should cover a rental vehicle for you also at no charge. (The catch with the rental: you may have to place a returnable deposit when picking up the rental as a security and you have the choice to accept or decline the optional insurance.)

[Joebelle]

The odometer just went over 1,000 miles. 600 are the trips back and forth to the dealership. It had 15 miles on it when I took it home. It is a 2009 Chevy Impala LTZ.

Adding insult to injury, it cannot take a class 3 tow hitch, so I cannot mount my wheelchair or lift!

I call GM corporate office once a day just for fun.

[trustno1]

Pick your state from the map.
http://www.lemonlawamerica.com/

[bendonahower]

If your car doesn't qualify as a lemon or won't shortly, I would consider selling it, taking the hit, and buying a reliable car. Lessons learned!

[Joebelle]

Thanks, Bend, great words of encouragement. I KNOW I did a stupid thing, I don't need to be reminded.