I cannot afford to make my car payment. It is always late. My credit is already pretty shot, I just want to know what the better option is. Keep making late payments, until I get caught up or let them take my car?
Thanks for any information.
2006-11-04 13:57:20 · 10 answers · asked by amb6487 2 in Business & Finance ➔ Credit
It depends on several things. If you can only make partial payments go down and see about refinancing more years. I am sure they would rather see you take longer at smaller payments than have to repossess your car.
Can you do with out your car? I am assuming you work and make payments from there.
If you can only make partial payments the bank will charge you late payments plus interest until eventually you will owe twice as much. Than they will repossess, sell the car for what ever it brings and either force you into bankruptcy or garnishee your wages for the balance.
If the car has much value close ot the bank loan you might considering asking the bank to take itback and sell it. and you pay the balance in loan payments.
If you can make late payments only you'll never get caught up. I would c onsider a few hours a week part time work for this sitution and aave that credit. let them see you are trying.
2006-11-04 14:10:05 · answer #1 · answered by Anonymous · 0⤊ 1⤋
If you are financing the car from a dealership, go back and ask to downgrade to a cheaper car. It looks bad on their portfolio to have cars repossessed (if that's the route you choose) and might be helpful in finding a car that is more affordable. Either way, I wouldn't let the car get repoed, it will stay on your credit for years. See if you can roll a payment to the back of your loan and try and get some money together to make your next monthly bill on time. Hope this helps!
2006-11-04 16:23:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
This is a really hard question. I would continue to make the payments, yes they show as late but at least you still have the car. If you let them take the car you won't have it and may have trouble getting another car. Also, you'll still owe on the car that's been repoed. That's crumby when someone else owns and is driving the car but you're still making payments on it. See if you can get it refinanced to smaller monthly payments.
Good luck!!
2006-11-04 19:30:04 · answer #3 · answered by NETTA M 3 · 0⤊ 0⤋
It is safe for you from a contractual perspective, but can still mean huge headaches for you down the road if the buyer decides not to pay you. Personally, I wouldn't do it without the full purchase price. Too many things can go wrong for you: Examples - 1) If the car breaks down before you get the full payment, then the buyer will probably abandon the car or refuse to pay you the remainder of what they owe you. You would have to sue them to be reimbursed. 2) The buyer is basically renting the car from you, which means the car will likely remain registered in your name. If they get parking tickets or toll violations, they could come back to you. You would probably have to pay them and then sue for reimbursement if they refused to pay for them. Whatever you do, when you sell the car, don't keep the plates on it unless you live in CA, where it is required. I know I am playing devil's advocate here, but you can't trust many people in 2010.
2016-05-22 00:09:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
What is the Blue Book on your Car? How much is your Payoff. If payoff is less then blue book, sell it.
You don't want a repossession on your credit.
Put all you can against your car payment and call the note holder and see if they will tack it on to the end of your loan.
2006-11-04 14:35:03 · answer #5 · answered by barbara w 2 · 0⤊ 0⤋
You need to have a meeting with the place where you make your payments. You want to explain that you want to make good on the loan and need to work out something with them so you can continue to pay on time. If you can't do what they want, I suggest you sell that car for as much as possible, pay it off and don't get yourself over your head again.
2006-11-04 15:02:26 · answer #6 · answered by MadforMAC 7 · 0⤊ 0⤋
Personally, I'd make the payment even tho they are late. Yes, they show up on your report but it is better then showing a default and repossession by either voluntary or in-voluntary.
2006-11-04 14:04:42 · answer #7 · answered by Peppino 3 · 0⤊ 0⤋
if they take your car you have a repo on credit report - forget ever having a real car loan AND they will come after you for the outstanding loan balance. they take car and sell it for cheap, you get sucked up for outstanding balance plus legal fees and interest and penalties.
Suggest you get 2 more part time jobs, get caught up and pay it off fast. Save the extra money cause you are one paycheck from homeless.
visit daveramsey.com to learn what you really need to know.
a repo can affect a home loan , credit card universal default clause(can you say 32% interest?), student loans, job opps.
2006-11-04 14:11:27 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Keep making payments if they will accept them. As soon as it gets repossessed they will levy a deficiency judgment against and you will be screwed for years to come.
2006-11-04 14:04:55 · answer #9 · answered by ? 3 · 0⤊ 0⤋
Tough question.
Once you give up the car, it might be tough getting another except by paying cash up-front.
It seems like the solution is to increase your income so you can have more freedom from that stress.
If you'd like a perspective on that aspect, please drop me an email.
Good Fortune to You!
2006-11-04 14:03:58 · answer #10 · answered by Smilin' Fred 4 · 0⤊ 0⤋