How to get out of an expensive car payment?

Question

I owe about 22,000 on a 2006 chevrolet cobalt and the payments are $469 a month (stupid me). I am thinking about doing a voluntary reposession. Has anyone ever done this and was the outcome, extremely terrible? My credit isnt that great, so im not all considered about that, but I am considered about how much I will still owe after the car is sold at auction. Any advice would be greatly appreciated.

Answer 1

Wow. A repo, even a voluntary one will screw up your credit even worse. That car won't sell for more than 10K at auction (unless its a SS, then maybe 12). Honestly, best option is to keep paying until you're not so far under water

Answer 2

What kind of cobalt is it, also how long have you been making payments on it. First thing first kelly BB it, you will usually get about 10% less then kelly because the dealer needs to recondition the car to be ready for sale. Find a car with great rebates to help hide some of your inequity, get into an inexpensive car, something like a focus or hyundai with a great rebate to help keep your payments low. I do this for a living, im a consultant for a dealer so that is your best bet. You can also try selling on your own, but look at what new ones sell for and what your asking for yours, be reasonable and you ahve a chance.

Answer 3

I did a voluntary reposession once. I helped a girlfriend buy a car (cosigned for her - stupid me). When we broke up, she left town and stopped making the payments. The loan company contacted me and I told them I wasn't going to pay for that car while that the ex-girlfriend was getting the use out of it. They threatened to repossess it and I told them that's exactly what I wanted them to do.

I got a call from the repossession company a couple of days later. I gave them info on where the ex moved to and explained what was going on. The next day, they called again to say that the car had been repossessed and the ex was hopping mad. The woman who called said she usually doesn't give out that kind of information. But, she felt bad for me and thought I might like to know that I totally ruined the ex's day.

Anyway, the repossession immediately popped up on my credit reports and stayed there for 7 years. It was a pain for a while, because I would get denied credit cards and even cell phone accounts. But, it does eventually go away.

I seem to remember owing about $4000 to the finance company. They were cool about it. They said that I could set up a payment plan to pay it back. And, if I paid $3000 within the next three months, that was all I would owe.


Still, I would not recommend it. You never know when having a good credit rating might come in handy (or when a bad one might hurt you). It's your choice, though.

Answer 4

Keep the car two more years. By then you won't be so upside down and you can sell it or trade it in without a huge loss.

Suffering through high car payments for 24 more months is not half as bad as suffering through ruined credit for 6 or 7 years.

A repo will destroy your credit rating. And only a fool would say they don't care about their credit score. Your credit score determines how much you pay for everything.

Answer 5

Depends on how much they get from it, the difference will be still owed.

Selling is private party is still your best bet, if not, refinancing it for lower payments, or trading it in, for another car, but the valuve and whats still due will be added on to the new car loan. Do you not like the car or is it just the payments? Either way, it's going to be a lil tough getting out of $$ owed.

Answer 6

To add to Paul's reply - Many employers check your credit when considering you for a job. Keep that in mind. A demonstrated inability to manage personal finances can keep you from getting the job you want or need. Landlords also check your credit when you apply for rental housing. If you can't handle a car payment, are you going to be able to handle paying rent?

Just food for thought.