I'm getting divorced and I have a problem with the cars my husband and I had. He bought me a car (it's financed under his name) and I bought him a truck (it's financed under my name). My car is almost paid off, the payments are only about $150 a month which I could totally afford on my own now. The truck is new and have only paid about $4K off on it and it's a $19K payoff. The monthly payments are $500! I CANNOT afford to take the truck back. If I take it back to the dealer where I bought it and turn it in, how much will I get back? What happens? I'll have to trade it back in to get a new car ASAP (I won't have time to privately sell it). Can someone please explain to me what will happen? Also, I am BROKE right now and can't afford to have to put a down on a new car and my credit isn't good. Will that matter since I'm trading in? Please help!!! You can IM me at TucKitty820 on AIM. THANKS!
2006-11-27 05:23:53 · 5 answers · asked by QT from Cali 1 in Cars & Transportation ➔ Buying & Selling
get a good lawer, he'll take care of you :)
2006-11-27 05:26:46 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Actually, the judge has the final say on these matters, however -- since the truck is in YOUR name it will most likely go to you. Why can't you sell it? Hell, you would be money ahead to RENT a damn car for a week and fire-sale the truck to get out of those payments. Of course, I'm sure you owe more than the beast is worth so you will end up with a $4,500.00 payoff to the leinholder. If you trade it you will be back in the same boat and a BIGGER debt. Then it gets smashed on the freeway, insurance can't pay you what it's worth because you are paying for 4K from the truck and at least 5K from depreciation on the new car. Now it's off to see the bankruptcy lawyer -- but wait...the new federal bankruptcy law states you have to liquidate your assets and pay back as much money as possible nowdays. No car, co credit, no home.
You cannot simply return a vehicle to the dealer. This is the same as a repo and the truck will be auctioned off for wholesale and YOU will be required to pay the difference (which will be thousands of dollars). Your best way out of this idiotic situation is to sell the truck for as much money as possible OR beg your soon-to-be ex to buy the truck from you and you in turn buy the other car. Either way it will cost you some cash that I know you don't have (been there, done that). If your ex is really pi$$ed at you you are sunk as his lawyer will insist the truck is yours.
Check out this site: www.daveramsey.com
And PLEASE use this as a learning experience.
2006-11-27 08:39:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Like the last guy said get a lawyer. Or maybe you and your soon to be ex-husband can work a deal. See if he'll take over the payments for the truck and get it refinanced in his name and give you the car. If that doesn't work, then you can take it to the dealership and try to sell it back. Sometimes you won't get back the sticker price. Depending on the miles, if the truck is over stocked at the dealership, if the dealer thinks they can sell it, it's all up to them. You don't necessary have to trade it in, I don't think. But if they don't cover your loan amount you still have to pay the remaining balance.
2006-11-27 05:54:48 · answer #3 · answered by Shirene B 2 · 0⤊ 0⤋
Talk to your lawyer about this. This needs to be addressed in the divorce decree. If the decree is silent on that, most likely the vehicles (and the associated debt) will go to whomever is listed on the title.
Keep in mind that the person who financed the vehicle is most likely the legal ower -- i.e. you financed the truck so its in your name, not your husband's.
You can't just take the car back to the dealer and turn it in. Although a dealer might buy it back from you the offer is likely to be less than what you owe on the vehicle.
Trading it in will likely leave you in worse shape than you are right now, since the difference between the trade-in allowance and what you owe on it will be added to the amount financed on your new vehicle. This will leave you even deeper in debt than you currently are.
At any rate, you need to discuss this with your lawyer NOW, before the divorce becomes final!
2006-11-27 08:23:59 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
When I went through this in my divorce, the lawyer said that no matter what the judge orders, whoever's name is on the loan agreement is liable for the loan payment. The judge can't FORCE a financial institution to change who is responsible for the loan. All of this is regardless of who's name is on the title.
My SUGGESTION... (although, maybe not the best one). Is, of course discuss this with your lawer. But tell your soon-to-be ex husband that you cannot afford to make payments on the truck, so you won't be making any more. Unless he starts making the payments, the bank will repo it. (This will look bad on your credit report, but as you said, your credit is bad already....)
Likewise, he is responsible for the payments on your car (because he signed the loan agreement). He can also stop making payments, and end up with a reposession on his credit report.....
If this option isn't what you have in mind, think about getting your husband involved. He probably wants his truck, and you probably want your car. I suggest you go to a credit union or small bank where you do business and possibly know someone, and tell them that you would like to BUY the car from your husband. (or refinance the car in your name, whatever termonology you want to use). And he must also agree to purchase the truck from you (or refinance)..
In the end, he is responsible for his truck payments and you are responsible for your car payments.
2006-11-27 08:51:06 · answer #5 · answered by glenspot 3 · 0⤊ 0⤋