I bought a 2006 Ford F-150 in June. I just found out my girlfriend and I are having a baby. My payment is 560 a month for 5 years. If I were to let Ford have it back would I be able to get a car loan for something cheaper. I make really good money.
2006-08-21 04:35:24 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
Congrat's on the new baby.
Now for the bad news.
The rest of the posters are right, a repo is a repo no matter how you do it. And it will totally trash your credit report.
First off you will have anywhere from 2 to 4 negative tradelines listed on your reports.
One for the original loan which will show as a charge off.
One for the deficiency balance.
One for a collection agency if it goes to one.
One for a judgment if they sue and win.
When a vehicle is repo'd they will sell it for somewhere around 50% of the book value (you would be lucky if it sold for 50%) which is quite a bit less than what you owe. You will be responsible to pay the deficiency.
Then they will tack on the repo fees which could run up to $1,000 or $2,000.
If you don't pay, for that kind of money, they will sue.
The court costs will make the total that you owe rise even higher.
So, you can figure that you will be paying pretty much what you are now, without having the vehicle in the end. Your credit will be so thoroughly trashed that you would pay excessive interest rates on any loan that you apply for in the next 7 years - that is if you can even get approved. If you do finally get approved, it would be with some of the worst lenders that there are.
If you feel that you cannot make the payments, even though you say that you make really good money, your best bet would be to sell it at a loss and then pay the lender in full after selling the truck.
Or keep the truck and keep making the payments.
2006-08-21 10:12:52 · answer #1 · answered by echo 7 · 0⤊ 0⤋
No. In the new car business all sales are final. If anything a dealer might allow you to bring the car back to get something more expensive but never will you be able to bring the car back for something cheaper.
Even on that Saturn TV commercial where the guy says, "me and the wife got a coupe but we discovered that we are having a baby so we took it back and got the SUV instead.." Yeah, right.. this scenario was probably true but they certainly didnt tell you about all of the fees and costs associated with making this swap. Most times if a dealer permits a return or exchange, there has to be less than a certain amount of milage on the vehicle and it must still be in showroom new condition.
2006-08-21 04:49:13 · answer #2 · answered by Joe K 6 · 0⤊ 0⤋
You are stuck! The first thing is you will ruin your credit, and you will wind up owing thousands of dollars after the bank sells it at a very low wholesale, and you will be stuck paying off the difference.
There isn't a good way out, but if I had to get out and couldn't sell the truck myself, I might consider trading it in for a lesser vehicle. You will still loose money, but your credit would remain in tact. No matter what, you are going to loose money.
Congratulations on the baby! Good luck with the truck!
2006-08-21 04:47:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋
it would destroy your credit. you are better off selling the truck on your own and getting a small loan on the difference between what you owe and what you sell it for. If you make really good money keep the truck it's only 560 a month.
2006-08-21 04:52:19 · answer #4 · answered by manundso 1 · 0⤊ 0⤋
It will screw your credit no matter what you make. If you absolutely have to do that. Buy the other car before it hits your credit.
When they reposses the car, they will charge you for recovery storage, and they auction off the Truck, so you get low dollar on it, You will still owe them the difference, which will be alot of money.
2006-08-21 04:45:05 · answer #5 · answered by 68NovaSS 1 · 0⤊ 0⤋
Try selling it..A voluntary repo is just as bad as a bank repo.
2006-08-21 05:32:28 · answer #6 · answered by Q.S.G 3 · 0⤊ 0⤋