Tips on Buying Cars: car loan, kentucky branch, loan question

Question
QUESTION: Hi,i got a loan on my car when i was in GA state and bought a second car at the same state from the same financial company, then i moved to KY state and contacted a branch of that company to transfer my loan from GA to KY state so i can do the payment follow up localy but here is my problem : the Kentucky branch charge me an additional finance charge of $5000.00 just to switch my account from GA to KY and i have been paying it each month.
1/ is the new finance charge of $ 5000.00 mandatory ?
2/ do i have to pay it all or stop paying it?
3/ if they are not suppose to charge me $5000.00, can i get a full refund ? and how?
4/ what do i need to know and do to ask for a refinancing of my two cars loan ?
Thank you for your help and time.
Scott.


ANSWER: Scott,

Thanks for your question.  I have never in my entire life heard of a finance company charging you and additional $5000 to move from one state to another state.  That is somthing I have never heard of before.  I would call the finance company and ask them to explain in it's entirety why they are charging you the extra $5000.  Are they refinancing the loan, or is it just simply a charge?  Ask them also to provide you in writing where you signed and agreed to pay that additional $5000 when you originally bought the car and originally signed the documents to purchase the vehicle.

I would start there, and then we can discuss the rest.  As far as refinancing both cars, you simply need a payoff on both vehicles to refinance them somewhere else.  

Hope this helps.

Thanks - JB

---------- FOLLOW-UP ----------

QUESTION: Hi Jeremy,
thank you for your reply. as you said in your previous answer, i called them and they told me that was a refinancing of my loan fron GA state, and i told them that i only ask for a transfer of my account from GA to KY so i do the payment here in KY branche and avoid any late payment fees.
so now i find out that it s a new loan that i already sing with more interest and a longer loan terms ( 48 months ) instead 28 months, please tell me what to do to fix this and bring it to it s previous status, thank you for your help.

Answer
Scott,

Thanks for your reply.  Well, I think I have some bad news for you.  Since you signed the papers and refinanced the loan, you are pretty much stuck.  That's why everyone really should read what they are signing.  It sounds like the lender did not explain what you were doing very well, and sort of tricked you, but they have the signed paperwork to back them up, and you have pretty much nothing.  

The only thing that you can do at this point is try to refinance it with someone else at a lower interest rate or payment, for a shorter amount of term.  The other thing that you can do, is pay extra every month, therefore reducing the amount of interest you will be paying.

You can also trade the vehicle in and get a new vehicle, just make sure that you read and agree to everything you are signing.

Other than that, you don't have any other options.  I know this isn't what you wanted to hear, but it is what it is.  Wish I had some better news for you.

Thanks - JB