he brought a car for me for 15000 dollars. With 500 down. We have been paying 380 dollars. for six months when we call the bank, they told us that we owe 17000 dollars. is there anyways we could return the car even if we loose our money.? Also do you guys think that's a bad deal, we have to pay it for 72 months? also someone told me about refinancing the car after a year does that help? By how much can it go down?
2007-01-13 12:00:03 · 9 answers · asked by Superman 2 in Cars & Transportation ➔ Buying & Selling
Often times the best thing to do is to sell the car and use the money to pay it off. It won't cover it all, but it could mean you'd have a lot less out of pocket and you could use the money you get to make monthly payments. If you sell the car for $10,000 you could keep the money in a seperate checking account and have auto payments taken out. You could contribute an additional $50 per week or so to make up the difference, but just let the loan run it's course. This way your credit stays good, you meet your responsibilities and you have maximum help in getting out from under the debt.
Returning the car can be looked at as default on the loan and it could look very bad on the record. Also if you would sell the car and give all the proceeds to the loan holder, you will still be responsible for $380 per month until the car is 100% paid off.
Peace!
2007-01-13 12:05:08 · answer #1 · answered by carole 7 · 0⤊ 1⤋
How did that happen?
Is the 17,000 what you will owe for principle plus interest?
As you pay, the principle amount you owe should be going down, not up. If you sell the car you have to pay off the loan and you should owe whatever balance is left on the loan.
You can't just return the car. You have to sell it and use the money to pay off the loan. A dealer might buy it back from you, but you won't get a good price from them.
I'm not sure about refinancing a car loan. The rates have to go down a lot for it to make a difference. And if you bought it new, you probably got a better rate than you would have gotten for a used car.
2007-01-13 12:02:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you return the car, they will sell it for much less than you currently owe. They will then ask you to pay the difference, and ding your credit report with a voluntary repossession. You will not be able to finance another car (or anything else) until you pay the balance owed.
It sounds like you have gotten into a ripoff loan. You should not owe more than you originally paid for the car. As I don't know what kind of car it is, I cannot say whether you paid too much, but the loan is a really bad deal. You need to refinance ASAP. If you pay for 72 months, you will have paid $27,860 for your car. These are near predatory interest rates. Get it refinanced fast.
2007-01-13 13:00:00 · answer #3 · answered by J.R. 6 · 0⤊ 0⤋
It sounds like a raw deal, but you can't return the car to the bank because they didn't sell it to you. You also aren't likely to have the dealer buy it back from you either unless you went to CarMax.
Sell the car on your own and use the money to pay off the loan.
If you refinanced your loan, you may just get a better rate, but without paying down more of the principal (which was your initial mistake), you're looking at paying thousands of dollars more for the vehicle when all is said and done.
2007-01-13 12:05:35 · answer #4 · answered by DA 5 · 0⤊ 0⤋
A friend of mine ended up returning his car after a few months of having it. He had lost his job due to an accident preventing him from going to work. The dealership took it as a voluntary repo. He ended up having to pay a judgment, though. I'm not sure of the amount he had to pay. It depends on how much is left after the dealer auctions it off.
Refinancing can help to lower the payment. It all depends on the %APR you are given by the bank you go through to refinance. Keep in mind that you are refinancing the balance of the loan, and most likely, depending on the bank and your credit, you will end up paying more for the car in the long run.
2007-01-13 12:24:17 · answer #5 · answered by Anonymous · 0⤊ 0⤋
My guess is that you not only financed the amount of the car but also financed the taxes and other fees involved with the purchase. There may also be some kind of prepayment fee if you pay it off early. The bank has a lien on your car, so you can't sell it unless you pay the loan off and get a lien release.
380 X 72 = $27,360.00 That sounds a little strong for financing 14,500. If you need to get rid of it, try and sell it yourself, on EBAY, or an ad in your local paper, or hang a sign in the window of the car. You will still need to pay off the loan and get the release so the buyer can get the title to the car and get it licensed.
2007-01-13 12:36:38 · answer #6 · answered by Fordman 7 · 1⤊ 0⤋
you still will owe the money the bank will sell it for what they can get and you will have to pay the rest
2007-01-13 12:04:57 · answer #7 · answered by oldmanarnie 4 · 0⤊ 0⤋
just let them repo it if ya wanta go tha route...
2007-01-13 12:06:25 · answer #8 · answered by that one guy 3 · 0⤊ 2⤋
he will go bankrupt DONT DO IT
2007-01-13 12:02:50 · answer #9 · answered by Katy 5 · 0⤊ 0⤋