Can You Really Get Out Of Your Car Loan Payment Using This Hack? It Could Be a Scam!
A TikTok creator has shared a controversial hack of getting out of a car loan. In the video which now has over 757K views, Cheese (@thankucheese) shows an ad for a BMW on Facebook Marketplace in which the owner claims that the car has no title. However, upon inspecting Cheese finds details that indicate it’s a scam in which the owner is trying to get out of his car loan payments.
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What is the way to get out of car loan payments?
“I finally figured out what these guys do, man,” Cheese says in the video. He explains that the car owners post an ad for a car for a dirt cheap amount, as in the example in which the 2021 BMW X5 was up for $8,500. The trick here to get out of a loan is that as soon as the owner sells the car, he or she will report it stolen to claim insurance and the buyer will ultimately get in trouble for Grand Theft Auto.
He says since the car was being sold without a title but already had miles on it, indicates such a scam. Further, buyers were required to put down a deposit, which is another kind of scam in which the owner of the car absconds with the deposit amount without going through with the purchase.
“These guys are smart,” the TikToker says.
What do the viewers think about the method?
While some viewers were skeptical, some of them believed in the idea and most of them were quick to share ideas of their own. One user jokingly said, “This sounds legal and illegal at the same time.”
While another shared the idea that instead of selling, the owners should simply hide the car and report it stolen. They should then part it out for a profit.
However, there was one user who raised the valid point that any buyer will be suspicious of the sale if the car is being sold without its title. Since it means that the car could be stolen.
Does this method work?
As per a Daily Dot report, the method is not going to work. The auto-finance blog, Zuto mentions that in case a car is stolen before the complete payment of the loan, the owner will still need to make payments for the loan. The owner will have to explain to both the lender and the insurer the situation and continue with making payments until the claim is settled.
As far as the TikToker’s claim about the buyer getting into trouble goes, it is only half right. As per the report, in case a buyer purchases the car from an owner who later fraudulently claims that the car was stolen, the buyer can easily get out of the situation by producing the necessary documents that show the car was willingly sold.
Further, in several states it is legal to buy a car with no title, however, it is indeed dangerous as the car could be stolen.
