If I bought a car & it was in a flood and the car dealer didn't tell me could I get out of the loan.

Question

If I bought a car & it was in a flood and the car dealer didn't tell me could I get out of the loan.

Answer 1

No.  If you found out it was in a flood after the sale, you could have found out the same information before the sale.  Any car in a flood would be obvious on the inspection before you bought it, and would be a reason not to buy.

But once you've bought an "as is" vehicle and find a problem, you own the problem.

Answer 2

If you purchase Gap Coverage insurance that will cover the difference between what insurance will give you for the car and what you owe.  DO NOT take out a car loan without Gap Coverage, ever.  

Answer 3

call your lending agent and get a good lawyer just in case you need them. how much did you pay is a big factor

Answer 4

sometimes states have "lemon" laws where it protects you if you get a car that has been damaged and you don't know.  I would consult the loan agency for the specifics on getting out of the loan.  its also good to consult a lawyer too

Answer 5

Only if the dealer loaned you the money.  Your obligation is to the bank, not the dealer.  If you believe the dealer committed fraud by selling you a car that had been in a flood and did not disclose this fact, and you can prove it, you can take legal action against the dealer to get the purchase price refunded.  You then take that money and pay off the loan.  Include in your claim for damages the amount of any interest incurred on the loan.

You can try talking to the bank and asking them to pressure the dealer, but the bank does not have to help you, or let you out of the financial agreement with them.