my daughter needs your advice?

Question

my daughter has recently split up with her boyfriend, and she is panic stricken, as she now has to sort things out financially on her own. she cries a lot, and i worry about her. we can sort some of the problems out she has, but are not clued up on what to do about her car? her car is on finance, and she just cant afford to pay for it anymore. would she be able to ask the car dealer to take it back, if so, would she be expected to pay a one off fee? could she suggest a one off payment or would it have to come off them? all monies are accounted for, she cant even offer a lesser payment. help!!

Answer 1

Sorry to hear about her situation. If she is in an apartment, then she needs to find a roommate. She will also need to find a way to reduce expenses until she can get on her feet. Could she move back home, until things get better? The car could be sold if she is able to pay off the loan with the proceeds from the sale. Most likely, she is upside down on the car. (She owes more than it is worth) Can she get an extra job until she can save enough to get out from under on the car?

When I younger and in dire straights. I worked two jobs until my expenses were manageable.

good luck.

Answer 2

Is the car a Lease or Purchase.

If it is a Lease there should be a clause in the contract for "Early Termination". That section will describe the fees invovled.

If it is a purchase you have to deal with the bank not the dealer. It does not matter if you turn it in or they come and get it. This would still be considred a repo. The bank will sell the car(for much less than the value), and your daughter will still owe the difference between that an the loan.

For example if the Loan has a balance of $10,000, and is worth $7500. They will sell the car for about $4000. She will then still owe the $6,000 difference. If she fails to pay that they could eventually take her to court for the money.

Sorry to tell you this, but once she signed the agreement she is responsible for the loan. The banks really don't care if she can not pay it anymore. Since you seem to think refinancing is out there are a couple of options you can try.

One thing you can do is attempt to sell the car on your own. You still won't get the full loan value, but you will get more than if they sell it. You then would only have to come up with the difference to get the title.

Another possibility is to find someone to just take over the payments. They will pay her every month and she pays the bank. At the end of the term she just hands over the title. If you do find someone it would be adviseable to have a lawer draw up a contract to make sure your daughter is covered.

Answer 3

well (i work at a dealership) no we do not take back cars its not like taking a pair of shoes back if she can afford a smaller car payment i suggest trading her car in for a cheaper car so her payments are less or selling the car but the problem is with that if u owe more on the car then its worth ur gunna end up having to pay the difference or u can also try getting a loan thru a different bank with a lower apr so the payments will go donw that way.......good luck

Answer 4

The loan is not with the car dealer, it is with a loan or bank company. The dealership is not going to take the car back,
The loan company will not allow her to lower her payments or skip a payment either.
She should find out how "underwater" she is. (meaning what is the difference between what the car is worth and what she owes). If she can, try and sell the car, and pay off the difference. If not, she is going to end up with the loan company repossessing the car, and her credit will be tainted.

Answer 5

If you give the car back you are basically surrendering the car to the bank. They will typically auction the vehicle off and then you are liable for the difference between what they sold it for and what you owe. But this is very damaging to her credit.