I have 2.5 years left on my contract and am wondering what options I have for getting out of it? Can I sell the car and pay it off if I make enough? What happens if I tell GMAC to repo the car? I am thinking about moving overseas, so paying the rest isnt an option. Thanks!
2007-05-02 15:09:19 · 5 answers · asked by Curious In Ohio 2 in Business & Finance ➔ Credit
Take your loan amount minus the selling price of the car. If this is positive you are OK. If not, you are upside down, meaning you owe more than the value of the car. You do have to come up with the entire value of the loan, just have the shortfall available.
DO NOT ruin your credit. The best idea is to find a way to pay the loan down to the value of the car.
Also, do not give the friend a car and have them make payments, they will default.
2007-05-02 17:41:23 · answer #1 · answered by Gatsby216 7 · 0⤊ 0⤋
You have to pay off the balance. Having a repo will destroy your credit in the U.S. You most likely couldn't get another car loan for 7 years in the U.S., but if your overseas that won't matter. You can try to sell the car for the balance you owe since you are near the end of the contract it may be a little easier to get close to what you owe.
2007-05-02 15:23:18 · answer #2 · answered by Ryan H 2 · 0⤊ 0⤋
Selling and paying the loan is always an option if you don't want to keep the car. Unfortunately, some auto loans have you upside-down, where you owe more than the car is worth. Hopefully, that isn't your situation.
2007-05-02 15:17:53 · answer #3 · answered by Still reading 6 · 0⤊ 0⤋
you can sell the car
but I can guarantee you will not have enough to cover the payoff ( you never do )
you can do a volutary repo
but kiss your credit rating goodbye
as it's no different that a repo or a default on a loan
2007-05-02 15:14:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Take the car with you... they can be shipped on a boat in a shipping container !!!
2007-05-02 15:13:25 · answer #5 · answered by Anonymous · 0⤊ 0⤋