I owe $13,500 and I can't afford to pay $300 a month for it anymore. Carmax will buy my car for $8,000. Will the bank release the title for the $8,000 and leave the remaining balance for me to pay? That should make my payment lower right? Any other ideas for getting rid of my car? Open to suggestions =) thanks
2005 Ford Focus
2007-01-22 08:01:35 · 12 answers · asked by cirnrab 3 in Business & Finance ➔ Personal Finance
Post it for sale. Allow bank to reposess it. Trade it on one you can afford.
Refinance it.
No you can not get the title until it is completely paid for.
The best thing you can do if you can not sell it is to TALK to the bank explain the situation. Try to get lower payments or even refinance it.
You might try refinancing at another bank.
The biggest mistake that people make when they get into financial trouble is to not talk to and or hide from creditors. THE very BEST thing they can and should do is to talk with the creditor and try to work something out. The bank may agree to take the car back from you;
2007-01-22 08:10:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A lot of the answers listed here are good (except of course for the insurance fraud answer).
The bank will not release the title - why would they? They might only do that if you threatened bankruptcy, but even in that circumstance I doubt they would.
Selling the car will help, but I seriously doubt you'll get anywhere near $13,500 for a 2-year old Ford Focus as it's upside down. Once sold, you will have to come up with the difference out of pocket to reimburse the lender with. They will not release the title until the financial end is resolved.
If you have a relative or close friend who needs a car and is willing to make the payments, you can "sell" it to them with "take over payment" terms. They will simply make the same payments you do and assume the loan, provided they can qualify for it. However again, would they be willing to pay $13,500 for a used Ford Focus??? Probably not.
Another option which will preserve your credit, enable you to keep the car and perhaps render a lesson in responsibility is to simply take a small part-time job which will generate around $300 a month. It could be a 10 hour/week gig at Starbuck's, as a page at a local library, crossing or security guard, babysitting, tutoring or ??? Once the car is paid off sufficiently and no longer a liability, you can sell it or do as you like.
In the future when you buy a car, try to find a newer, low-mile used one where someone else has eaten the depreciation and where you can liquidate it quickly without losing any money.
2007-01-22 16:51:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you still want/need the car but just can't afford $300/month then I would try to refinance the car loan to a longer term and/or a lower interest rate which should reduce the monthly payment. Any bank will refinance loans to a longer term without much trouble and will probably roll the refinance costs into the new loan so that there is no additional cash outlay right now and you get to keep your current car.
If you do sell it to carmax and get the $8,000 and pay all of that to the bank now then the monthly payment might be the same you will just pay off the loan much sooner and be left without a car.
Carmax is probably giving you somewhere around the wholesale price for your car not the price you could get for it if you sold it yourself so if you can stand the payments for a little while and try to sell it yourself taht might be the next best option.
2007-01-22 16:10:41 · answer #3 · answered by Matt M 5 · 0⤊ 0⤋
Sell it yourself. Go to cars.com and post it. Post it in your local paper. Put a sign up in your window. Go to http://www.kbb.com/ to find out what the private selling value is. Price it right if you really need to sell it. Don't try to get an extra $500 if that means you are going to have to make 1 extra monthly payment. Think about it, if you sell your vehicle for $8000, that you owe $13,500, you will have to pay the remaining $5,500 to the bank. If you are backwards on your loan (the value is less than what you owe on the loan) or can't sell it, refinance. This will extend the loan out longer and means you will have to pay more in interest over the long run, but it's better than getting it repossessed.
2007-01-22 17:15:32 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No, the bank won't release the title. Remember that the loan is secured by the car and if they were to do what you want they would have no security for the loan.
If Carmax is will to pay $8,000 I would bet you could sell it privately for more than that.
2007-01-22 16:04:47 · answer #5 · answered by Oh Boy! 5 · 0⤊ 0⤋
Try to sell your call yourself, you will probably get more for it. Say you sold it for 10,000 that leaves 3,500 left over and you can take out a loan to pay that back. It will be cheaper.
2007-01-22 16:05:37 · answer #6 · answered by Jacuzzi Lover 6 · 0⤊ 0⤋
Try autotrader.com.
Also you might try selling the car by transferring the terms of your loan to new buyer (they pay the monthly loan instead of you).
2007-01-22 16:05:10 · answer #7 · answered by Anonymous · 0⤊ 0⤋
You can go to the mod shop and sell your car. You make a little extra cash and it won't show up in your garage anymore
2013-10-09 02:02:45 · answer #8 · answered by Damian Maurer 1 · 0⤊ 0⤋
Sell it yourself through a private sale. You'll get more then $8000.
2007-01-22 16:05:28 · answer #9 · answered by Outside the box 6 · 0⤊ 0⤋
No, it will not lower your payment... The only way to lower the payment is to refinance it.
2007-01-22 16:04:58 · answer #10 · answered by Anonymous · 0⤊ 0⤋