I am a runaway and have learned things on my own and I make mistakes.?

Question

After not being happy with a car I bought using cash, I traded it in to a dealership and sighned up for this high intrest car loan and after .... I totally regret my decision, big time, and wish I never acted on my desire for a nice car. I make too much money to file chapter 7 bankruptcy because of the car payment and just really want to keep my income vs paying a bank, and auto insurance company alot of the money I earn by working. Is there a way to break free or am I stuck paying? (of course I am willing to give up the car)

I cannot seem to edit this question
what I ment was I really want out of this and I make too much money (barely) to file for bankruptcy

Answer 1

I made the same mistake when I was 18. The saleswoman saw me coming a mile away.

You have a couple of options:

1.) You can call the finance company that gave you the car loan and volunteer to have them reposses it. Of course this will ruin you credit which is still better than having a bankruptcy which stays on your report for at least 12 years sometimes longer. A repossesion will only stay on for 7 years and it will say next to the repossestion that it was a "voluntary repossestion" which looks a little better than if they came out an repossed it against your will.

2.) Put an add in the classified to sell it. You won't get the full value of what the car is worth because it is considered used, and you'd have to pay the difference between what you actually get for it and what is the remaining pay-off. That's the problems with buying a brand new car - most of the time you end up OWEING more for the car, then the car is actually now worth. Also, the minute you buy a NEW car and drive it off the lot - it's begins to lose value. To find out what the true value of your car is worth now - check the "Kelly Blue Book". You can even check MSN Autos. That should tell you how much it's worth, and you can see what other people are selling the same car for and come up with a competitive price. You can also sell your car on that sight as well. But be careful - there are a lot of "car dealerships" that use those sights and what they pay for a car from someone like you is a lot less, because they have to turn around and sell it for a lot more in order to make a profit.

In the future - don't be so hasty. I know it's hard -but "buyers remorse" is even worse... and expensive!

One other thing you can try - I don't know how long you've had the car - but some states do have a "buyer's remorse" law where you can return the car to the dealership if it's within 30 days of the purchase. If that applies to you - don't go in and say "I Can't afford it" - because they won't have sympathy for that excuse. Just say that you aren't satisfied, it didn't live up to the expectations that the salesperson promised you and your not happy with it. It's worth a shot. Maybe they will feel bad and offer you another car thats more affordable because they don't want to lose you as a customer and to protect the dealships reputation.

Next time you buy a car - consider purchasing a "pre-owned vechicle". Those are usually cars that people turn in after they have leased the car for a year or two and they didn't want to buy it only because they don't want to be "seen" in a car thats 2 years old (some people think it's not fashionable to be seen in anything but the newest car) - they want a brand new car every year or every other year. These "pre-owned" cars are about 1/2 the price of a new car - sometimes less depending on the mileage. And because leasing a car has strict rules on maintaining a car you lease - they are in very good condition. I have never purchased a new car again after my first experience. I only buy pre-owned vehicles now and have had nothing but great experiences. (I've purchased 3 pre-owned cars since I was 18 and the only person who knew it wasn't brand new was me!)

Regardless of what you do - I'm afraid that its going to have negative consequences on your credit report. But like I said, they are all better than having bankruptcy.

I would try to sell the car first and see what happens. If you are getting really low offers - then call the finance company and volunteer to surrender the car. Hope that helps you out and Good Luck!

Answer 2

You should talk to a financial adviser. There are non-profit groups that can advise you, if you can't afford a for profit adviser. You can also check with banks and credit unions to refinance. You may be able to pay off the remainder of your loan if you sell it. You could be "upside down," however, which means you owe more on the car than it is worth, and you would have trouble getting a new loan. Just check with an adviser, there are many factors in play.

Bankruptsy isn't a good idea, because future loans would be MUCH more expensive, or unavailable to you. If you need to lose a thousand or two in order to rid yourself of the debt, It's probably worth it.

Answer 3

you might try selling the car ,and you may not even have to take a loss on it,we all have bought cars we realized we didn't want or like ,i did it,and i know a lot of other people on here have also,try selling it while you can,you may actually come out ahead on it,i did this once,and i did get out of it and broke even,i didn't make any money,but i was glad to get out of debt on that one,you can try and see,at this point you don't have nothing to loose but time,good luck i hope this help,s.

Answer 4

try selling it for enought to pay off the loan it will be dropped down if payed off early