My car died. It would cost us more to fix it than it is worth. We have a loan on it. Is it better to keep the non running car or surrender it to the bank. I know they can sell it at auction and use the proceeds against my lien. I am worried about how this will affect my credit. If anyone has any ideas please let me know.
2007-02-09 04:18:59 · 10 answers · asked by r4cats 1 in Business & Finance ➔ Personal Finance
My car is worth $4000 apx, running, however it is not running and needs over $3000 worth of repairs. Plus there is a $2000 bank loan. We have been making payments to keep the loan current. Should we surrender it and keep making payments or just let the car sit until it is paid in full? I know that the finance company can auction it off and we would owe the balance. If we continue to make payments it wouldn't be past due. Does anyone have any ideas?
2007-02-09 04:50:51 · update #1
fix it and keep it running if you can possibly afford to. the other two options are both nonstarters...why keep it and keep paying if it does nothing for you? dont ruin your credit.
2007-02-09 04:23:16 · answer #1 · answered by David B 6 · 0⤊ 0⤋
The bank wont just take the car and sell it for you and have you owe the difference while you're still making payments. They only go through that trouble if they have no other means of collecting.
Surrendering the car is NOT a good plan. Make the payments on it until the amount owed is equal/less than you could sell it for, and then sell it and pay off the note.
2007-02-09 04:58:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Surrendering the car would be the same as a repossesion on your credit report. You would also have no control on how much the bank gets for the car. True that any proceeds would go against the remainder of your loan, but the bank would still come after you if there is still a balance.
2007-02-09 04:24:21 · answer #3 · answered by Brian G 6 · 0⤊ 0⤋
First you loose, no matter what. If the bank repossess it you pay for the repossession plus when they sell the car, if it isn't enough to settle the debt, you still owe the difference. Unless you pay off the loan, before it becomes delinquent, it be reported as negative to all three credit companies.
Reading between the lines it sounds like you have already been declared delinquent. If so call the bank and ask how to mitigate the damage.
2007-02-09 04:26:38 · answer #4 · answered by ttpawpaw 7 · 0⤊ 0⤋
First of all, the bank doesn't want your car. They never did. They are not in the car selling business, they are in the money selling business. If you turn the car in, then you are saying you no longer intend to pay the bank back all the money they loaned you to buy it. It will go on record as a reposession. It will be a voluntary reposession, so I don't think your credit will take as big a hit as if they had to come get it.
Plus, if they don't get all you owe when they do sell it, you will still be liable for the difference. UNLESS it gets sold to a DEALER in another state, in which case you owe nothing.
2007-02-09 07:02:25 · answer #5 · answered by The Mokoda 1 · 0⤊ 0⤋
Yes it will affect your credit! Try to sell the car and get the most out of it that u can and try a personal loan to pay the balance of your loan
2007-02-09 04:24:17 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I would continue paying on the car. If you let it go back, it will be auctioned off and if they don;t get what you owe on it you will end up paying the difference.
2007-02-09 04:44:08 · answer #7 · answered by Anonymous · 0⤊ 0⤋
relies upon on the automobiles make,kind and year alongside with engine length to any extent further contemporary motor vehicle ninety 5 and up close off if its going to be greater then 5 minutes. as they are going to burn greater gas working then commencing and greater suitable engine v6 3.0 or up id close off for greater then 2 minutes older motor vehicle/truck save it working it could reason greater co2 yet there no longer designed for on and stale additionally they eat greater gas commencing then working a couple of minutes
2016-12-17 06:03:23 · answer #8 · answered by ? 4 · 0⤊ 0⤋
I wouldn't want a repo on my credit report.
I'd pay on it even if non running.
2007-02-09 04:23:07 · answer #9 · answered by Indiana Jones 6 · 0⤊ 0⤋
does dead car have make and model ? get fire insurance !
life ins. ?
U must have other car - fixit .
maybe combine pymts into one smaller % . assuming you still owe , its work on your car ,i know ,you'll need another then you'll already have it .
2007-02-09 04:35:40 · answer #10 · answered by martinmm 7 · 0⤊ 0⤋