The mechanic says I have to change the Torq converter with some joints, etc. and with him this will cost me around $1000, if I go to the dealership it will cost me around $2 -$3k or more. I tried to trade-in for another car but my score is 578 and I owe on the truck $25k and they want to give me for it $15-$17k. So it will be upside down from $8-$10k. That is a lot of money. I think I have a lemon car so I think I will give the truck to the bank (voluntary repo), because it is not fair I spend a lot of money on it plus my monthly payment and the truck value is $10k under of what I owe. I know this will damage my credit but I have no options. Do you think later on if I have $3k I can buy another car on a dealer? What do you thin I should do?
2007-09-06 04:08:23 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
Auto finance is what I do for a living and you do not want to let the vehicle go back.
The lender will sell it at auction for less then it's worth and come after you for the balance plus all fees for towing, storage, reconditioning, auction, interest, lawyers and anything else they can think of. This will amount to several thousand dollars well over the $8,000.00 to $10,000.00 you are upside down.
If you do not pay, they will take you to court and get a judgment, at that point they can attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like cars, boats, land and homes.
All of this will show on your credit report for 7-years and make it almost impossible to get any other types of loans without paying massive down payments, fees and State maximum interest rates.
Do you really want to let this happen over a $1,000.00 repair?
Look, the reality is that 90+% of the people that financed their vehicles are upside down. The only way out is to put huge money down, buy something even more expensive that can suck up the negative equity and raise your payment by $200.00 a month or drive it until the loan is paid off.
And as far as buying another vehicle, if you let this one go back your credit score is going to be well below 500 and the only lenders that will approve you are going to be the bottom feeders.
2007-09-06 04:21:24 · answer #1 · answered by ? 7 · 3⤊ 0⤋
How long have you had this truck? It sounds like you have bought more vehicle than you can really afford. When you are buying a vehicle, you should allow some money in your budget for maintenance and repairs. If you bought that car used, you should EXPECT that it needs AT LEAST $1000 worth of repairs. I'm not being pessimistic, because even a few relatively minor repairs, like new tires, brakes and rotors, and a tuneup can quickly add up to $1000. You are too far upside down to trade or sell your way out of this anytime soon. The best thing you can do is shop around and try to get it fixed as reasonably priced as possible and then live with it until it is paid off. Eventually, when you have paid the balance down for a few more years, you will probably be able to sell it for the payoff, but by then you may not want to. The Navigator is a good vehicle overall, and if you take care of it, it may last to 200,000 miles or more.
2007-09-06 07:48:22 · answer #2 · answered by carguy 4 · 0⤊ 0⤋
Voluntary repo is the same as a non-voluntary repo as far as your credit report. Your score will be trashed.
But what's even worse is that you won't get out from under that upside down loan. They will sell off your vehicle at auction -- way less than that trade in value. You will then be responsible for the balance. No matter whay, you are stuck with that $10K.
You may as well pay the $1K to fix it and keep driving it.
2007-09-06 04:24:39 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
I cannot believe a torque converter would be going out on a car with 62K (they rarely go out after 200,000 miles) unless you routinely do neutral drops, and I highly doubt it. Doubt U-joints would go out at that time for the same reason. Think your mechanic is giving you a line. See another mechanic before anything.
2007-09-07 10:05:16 · answer #4 · answered by Pengy 7 · 0⤊ 0⤋
I think you should pay the $1000 and get the truck fixed...it may not necessarily be a lemon.
2007-09-09 15:51:57 · answer #5 · answered by amaya7 5 · 0⤊ 0⤋
I'm guess the navigator needs a tune up.
2016-05-22 14:36:33 · answer #6 · answered by ? 3 · 0⤊ 0⤋
Try to sell it.
2007-09-06 04:32:57 · answer #7 · answered by Laura Z 4 · 0⤊ 1⤋