Vehicle Contract??? Help????

Question

Bob purchases a new car from CarLots and signs an installment contract to make payments for four years. CarLots sells the contract to Big Bank. Two months after purchasing the car, the paint starts chipping, the radio dies and the engine makes loud clanging noises. Bob takes the car back to CarLots, but they refuse to fix it. When Bob stops making payments, Big Bank demands that Bob pay up because the bank is a Holder in Due Course. State the rights and responsibilities for Bob, Big Bank and CarLots.

Thanks for any help!

Answer 1

When Bob left Car lots with his car, and car is not new, Car Lots not responsible for any of repairs on Bob car. Big Bank hold the title on this car, if Bob will stop make payments, Big Bank will reposes this car after 2 month. Bob will get repo on his Credit Report and his score will drop 200 points, so he will not be able to get another credit for a car for a long, long time.What Bob should do, is take this car and trade in for another car, just be more careful this time. Good Luck!