I purchased a truck for my nephew and now he is not making the payments?

Question

I purchsed a truck for my nephew because he did not qualify for several reasons. Now I learned that he is 5 months past due because of work problems. I need some advice on either to voluntarily repossess the truck, and take the lost, and probably ruin my credit or make up the payments and try to work with him on future payments. please help asap

Answer 1

Auto finance is what I do for a living and if I understand your question correctly what you need to do is contact the lender and get the payments up to date to save your credit.

Then go get your truck from your nephew and sell it so you can pay off the loan.

You have been taken advantage of and should not stand for it.

Answer 2

If you financed it, or cosigned the loan, you need to pick up the slack on the payments, or your credit will be damaged. If it was me, I'd repossess the truck from the nephew right now, before it gets damaged, then either keep it myself, or sell it to pay off the loan.

I don't know your nephew, so I can't say for sure, but he sounds very irresponsible.

Answer 3

This is how you fix it...you pay it up current to satisfy your own credit. Then you take your nephew to court (and I don't advocate taking family members to court, but this kid clearly took advantage of you and needs to learn a lesson) to get legal posession of the vehicle...which they will give to you.

That way you can get the title in your name, which will give you the right to sell it and get some of your money back.

Don't opt for a voluntary reposession b/c as the co-borrower, the resposession will hit your credit, and you already have several lates on your credit due to him not paying what he is supposed to.

If you EVER co-sign for anyone again (which I suspect you will not)...have them pay you, and you pay the creditor...that way you know it's been paid.

Answer 4

Being that you financed it, you need to take posession of the truck immediately. Call the finance company and talk to the Loss Mitigation unit. They should work something out, and get you back on track. Once you are caught up, explore options of selling, refi'ing etc...