Citifinancial reported car as Repo but will not take it?

Question

I have a 97 Taurus that I have paid on for 4 yrs with an interest of about 22%. The past year I have had to replace the transmission twice and once again the car is not running. I can not afford the payments and the repairs. I tried to refinance with them with a lower percentage, lower payments, pay off amount, etc. They would not accept anything and have added interest and are now telling me that I can not make payments anymore that I owe them $7k to get the title. I told them to take the car back more then once I asked where I can voluntarily return it and they want take it. They said it is not worth the money for them to take it back. They have it listed on my credit report as charged off/repo. Now I have a car that I am paying insurance on and that does not run and no title! I need to go get another car that runs. I do not have $7k to pay them off. Any suggestions?? How can I get rid of this car??? I could fix it and they could take it at any time ..since it is listed as a repo

Answer 1

It sounds like you want them to repo your car. If this makes financial sense to you... it definitly does not to them. The car is not worth what you owe them. Even if they took your car, they would sell it and reduce your debt by the amount they sell the car for.

It's in your best interest to go to a used car dealer, trade your car in and attempt to roll the an difference in value into your new loan. 22% is very high. You have probably paid for your Taurus twice by now and you don't even own it outright.

Next time try to get a 3 year loan. The payments are higher but the total interest is less than half of a 5 year loan.

Answer 2

If the bank has reported the vehicle as a repo/charge off? You can go and apply for another loan on another vehicle without paying them anything. You will have to put a large down payment due to the reported repo/charge off and your rate will be high. That's just the way the car business works.

They can always come after you as a collection and garnish your wages if they win and if they do this they most likely will win since you defaulted on the loan.

They will have to actually repo the vehicle and go through the auction process before they can turn it over to collections. Then you will be responsible for the balance left between what you owe and what they sell the vehicle for.

Sounds like you got screwed. Good luck.