2006-12-27 11:37:52 · 11 answers · asked by bonbon81 1 in Business & Finance ➔ Personal Finance
Contact your lender and see if you can work something out, they don't really want to take the car back. If you end up having to give the car back, they will resell the car and you will be responsible for whatever the difference is of what you owe and what they sold it for.
2006-12-27 11:46:07 · answer #1 · answered by Proud to be 59 7 · 0⤊ 0⤋
I am a Wealth Coach and don't mind working with you, however I don't want to reveal my info to the masses. My guess is the car payment is less than the tip of your financial iceberg. The short answer is to contact the lender and see if you can negotiate moving the current payment to the end of the term, which will "buy" you up to 30 days until your next payment.
Next, figure out the best way to get out of the high car payment (i.e. sell, downsize, see some of the other posts, etc.). At the same time, look at every penny you spend and either cut out or cut down by $20 per expense per month and put the savings toward the car or other financial concerns. For example if you buy coffee in the morning, buy lunch at work, eat out in the evenings, shop (for ANYTHING), or have cable TV cut those expenses totally out until you get a handle on the bigger picture. Other expenses should be cut by a minimum of $20/month EACH such as cell phone features and minutes, home phone features, utilities (water, gas, electric), etc. Develop a spending plan and stick with it. Get a copy of your credit report with your credit score and start repairing your past. Finally, go to your local library and get 2 or 3 of the top easy to follow financial management books.
Usually my advice is not this extreme, however you present an extreme situation and I don't have enough info for detailed assistance. I wish you well and you did the right thing by asking for help.
2006-12-27 14:59:44 · answer #2 · answered by just4 j 1 · 0⤊ 0⤋
Some of your options will be as follows:
1. If you want to try to keep the vehicle you have see about refinancing with your financial institution. For example if you have three years remaining, refinancing for five years will lower the payments.
2. If you are looking to get rid of the vehicle, try selling it to another individual first. Get the blue book value from your financial institution so you can have an idea of what it is worth.
3. If you can't sell it to an individual then try selling it to a dealership such as Car Max.
Now, what will happen is if your vehicle is upside down (meaning it is worth less than what you owe) your financial institution might be willing to do a signature loan for the difference.
Save repossession as a last alternative because regardless of selling it to a dealership and owing a difference or having it repossessed you are still responsible for the upside down amount. The only difference is the repo will count very negatively on your credit report.
2006-12-31 09:00:46 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Contact the lender, discuss the problem with them. If you have to turn the car in they can resell it. If they sell it for less than you owe then you are still liable for the difference. Keep in mind that they can sue you, and they can get a judgment against you. But they can not eat you. If you own a home, they can put lien on it. You will have to pay them off before you can sell your home. If you do default on the loan, it will stay on your credit report for 7 years. I Think is 7 anyway. You will have a hard time if you try to buy another car later though, or a home etc.
Good luck there. I know how you feel.
2006-12-27 11:53:37 · answer #4 · answered by It All Matters.~☺♥ 6 · 0⤊ 0⤋
Do not turn back into the dealer, sell it you self. You will get more for it than the dealer. You'll need to take out a loan for the difference of what you owe and what you can sell it for. Include in the loan enough money for a beater car. Very basic transportation. Doing it this wait won't have a negative effect on your credit; a volunteer repo will. To speed the process, a part time job will help get you out of the hole faster.
2006-12-27 13:19:31 · answer #5 · answered by Sun and Sand 3 · 0⤊ 0⤋
i feel sorry for you i had the same problem i had to take the car back and then few days later whoever you bought the car from gives u Letter that u still have to make payments on it till u get it paid off or else they will try n resolve it with an attry and then if u work they have legal rights to pull your money outta your bank till the car is paif off
2006-12-27 11:42:50 · answer #6 · answered by Sean S 4 · 0⤊ 0⤋
Sell the car and repay the loan.
2006-12-27 11:43:46 · answer #7 · answered by nickfromct 3 · 0⤊ 0⤋
Get a car that you DONT have to pay "payments" just get a cheapy car...
2006-12-27 11:45:28 · answer #8 · answered by Anonymous · 1⤊ 0⤋
get a part time dude that`s what i did deliver pizza, clean offices at nite what ever dude just do something
2006-12-31 08:04:23 · answer #9 · answered by me_and_the_ant 1 · 1⤊ 0⤋
your best option is to call your lender and work out arrangments.
2006-12-27 11:39:48 · answer #10 · answered by Anonymous · 1⤊ 0⤋