Channel 33 News reported that more and more Dallas residents are frustrated by the long wait at the Dallas Police Auto Impound Facility.  The Impound Facility not only houses cars which have been towed for violations, but also serves to hold recovered stolen vehicles until their owners can pick them up… but with a catch.  If you are the victim of auto theft, you get the added pleasure and expense of waiting in a long line to pay to have your car released.  Some owners were actually turned away and required to come back the next day, at an added day’s expense.  The Facility explains that even though there is usually a slight delay, yesterday’s excessive delays were an exception.  They do acknowledge, however, that they are not able to provide more cashiers for more expedient service because of recent budget cuts.  Bottom line… when it comes to our cars, we just don’t like waiting.  We are no different when we cruise the car lot looking for a new vehicle.   It is easy to be impatient especially when dealers are “kindly” offering dealer financing, for your convenience, of course.  Remember, though, that convenience comes with an extra price tag.

Before committing to a dealer financed contract, understand your risks, responsibilities, and alternatives.  First, even though the dealer says that he is financing the deal, more than likely they will resale the contract to a financing company after you sign the deal—for  a profit.  Which means that you will be making payments and working out payment issues with someone you have never met.  Because the dealer’s objective is to make more money by selling that contract to a third party, a sub-goal is to get you into a car at your deal-breaking point.  For example, you qualify for credit on a car where your payments will be about $250 per month.  You have told the dealer you would like to keep your payments around $275.  Even though you qualify for the $250.00 payment, he pushes to sell you a financing agreement just above the $275.00.    If you had gone to lenders in advance, you would have known what your best financing options were, instead of getting pulled in by the impatience of wanting to drive the car home immediately after the sale.  Also understand that a dealer may let you take the car, leave your trade in, and continue working on the financing details.  This, of course, is a financial disaster waiting to happen.  It puts the dealer in control of your financial future.  If the dealer cannot find financing in your price range, you may feel forced to sign a contract which is much more costly than you had originally anticipated.

Once you sign the bottom line on the contract and take the vehicle, you’re on the hook, even if you decide three months later that the payments are beyond your budget.  If you are strapped financially because of the dealer financing and other debts, and your new lender isn’t working with you to explore other arrangements, considering reviewing your options with a bankruptcy attorney.  Many people operate on the assumption that you “loose everything” in bankruptcy.  To the contrary, bankruptcy can be the means to help you keep assets that you need like your car and house.  You won’t get your trade-in back, but there are sometimes ways to work better payment arrangements through bankruptcy so that you can still afford your life and keep your transportation.    You can also discharge unsecured debts that will enable you to free up funds for secured debts like a mortgage or car loan.  Contact a bankruptcy attorney in your area today to learn more about your debt management options.