Things To Know About Negative Equity On Lemon Law Buybackby Andrew Richardson allenstewart
If you financially owe more than the worth of your automobile, you can consider yourself to be in an ‘upside down’ situation. This kind of surplus debt for your automobile can be termed as negative equity. You can end up with negative equity at the time of purchasing or leasing the new car. If you trade in a vehicle, you can get rolled up with surplus debt into the new car.
To make it more understandable, you can check an example. Suppose you have a vehicle worth $12,000 but still has a pending loan amount of $15,000. So, the upside-down for your financial standing is $3000. Now, if you trade your vehicle for a new automobile worth $20,000, the surplus debt or negative equity of $3000 will get added to your new purchase. This will end you up with a loan of $23000 with an automobile asset worth $20,000.
This negative equity also plays a significant role in the lemon law in Illinois or other US states. So, follow this article to know more.
Importance Of Negative Equity On Lemon Law
If you’re eligible for repurchase from your manufacturer under the lemon law in Illinois, you will get a refund, including all the paid charges. For instance, you’re supposed to get a refund for your down payment, monthly instalments, registration fees, and other minor costs mentioned in the agreement of purchase or lease.
However, the negative equity for the lemon car is a crucial topic of debate and argumentation between your lawyer and the manufacturer’s attorney. Your attorney will make strong arguments to prove that the surplus debt is a part of your purchase payment for the vehicle. They will claim that having a lemon automobile is not your fault, and you can no way get your trade-in car back.
Solution for Negative Equity on Lemon law
The best possible solution for your negative equity in case of lemon law buyback is collateral swap. This will help you with the consistent loan schedule, balance and instalment amounts. However, your lemon car will get removed as your loan’s collateral security with the new vehicle you got a replacement. In simple terms, you will get the result with the exact duration of your loan along with a new replaced automobile.
In many cases, lemon law cases with negative equity end up with a compromise from either party. Another solution for your negative equity is converting your settlement value to ‘cash and keep’ deal. However, you will remain stuck with your lemon vehicle to drive, which can be unsafe.
So, if you are stuck with negative equity on the lemon law in Illinois or other US states, consult an attorney. You can take the help of the best attorney to handle your situation with expertise and give results in your favor.
Andrew Richardson is the author of this Article. To know more about Lemon Law in West Virginia please visit our website: allenstewart.com
Created on Jul 26th 2021 05:11. Viewed 164 times.