Dont know what to do about letting my car get repossessed...?

Question

I have a 2004 Dodge stratus that I owe 13,500 on and its not worth 7000. My husband also has a dodge TRUCK thats not worth 16000 but owes 29000, we are SO negative its not even funny and we both want new cars but cant get one cause our payments would be outrageous cause were so negative. We want new cars and have considered letting ours go back and in the meantime get brand new ones that we can afford and get a new house (rent) in the meantime, something where we can see ourselves being there for a long time. Only thing is i worryabout my credit.... my car is in my name and my husbands grandpa is co signer, on my hubbys truck its in his grandpas name and I am the co signer... how will this hurt me on either way? we want OUT OUT OUT of these negative cars so bad.

Answer 1

Auto finance is what I do for a living and the only way you can get out of negative equity is either make a huge down payment, buy something even more expensive that will suck up the negative or drive the vehicle until it's paid for.

Over 90% of the people in the Country are in this same boat.

Now, if you let the vehicles go back there are a whole lot of really bad things that will happen.

First the accounts goes deliquent and then the vehicles are picked up or you turn them in makes no difference.

Then the lenders will sell the vehicles at auction and come after you, your husband and his grandpa for the difference puls all fees for towing, the auction, reconditioning, interest, laywers and any thing else they can think of.

This will amount to several thousand dollars, when you still 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 activity will show on your credit report trashing your score for the next 7-years and making it very hard to get any other type of loan without massive down payments, paying huge fees and State maximum interest rates.

You really do not want this to happen, repossessions without a bankruptcy are one of the worst things that can show on your credit.

Answer 2

You can't get out right now. If you let your cars get repossessed who is going to finance you? Since you will have burned the bridge to your co-signer so he won't be able to help you either. Being a co-signer is the same as being the primary borrower for all intents and purposes. So the reality is that your husbands grandfather will be on the hook for both vehicles and I have no idea how you'll get new ones. This could be a bad family situation because if it gets out that you basically stiffed grandpa for about $20,000 expect to hear about it.

Answer 3

Do not let them get repoed. Say you owe 13,500 and they sell it at auction (that is what happens to repoed cars) and get 7,000 out of it you still have to pay the 6,500 difference. They will sue you for it. It is better to pay for a car that you don't want then to pay for one that you don't have. If they can't get the money out of the person with the loan then they sue the co signer. DO NOT DO THAT TO GRANDPA. He helped you out. Don't do him like that. Your credit should be treated like gold. Some places of employment now do credit checks on perspective employees. Bad credit is a sign of immaturity and irresponsibility as far as they are concerned. It is hard to rent also with bad marks on your credit. My advice is to pay as much a possible on your car (it has the lower balance) until it is paid off. When that is done take all of that money each month and send it extra to the truck. When they are paid off then you can get a new car. One new car with a payment at a time is what we live by.

Answer 4

I would highly suggest not letting that car get reposessed. My ex-wife's experience was losing the car after 3 months of non-payment, then it usually gets sold at an auction price waaay less than what you owe, then they come after you for the balance. Afterwards it's going to be on your credit report. You may not be concerned with your current credit rating, but keep in mind that's what your interest rates are going to be based on and it takes time to clean up your credit. As long as you have a loan on that car, you won't be able to drop the insurance on it either. I'd make an attempt to sell it while your payments are current. You could always talk to the lender and look at re-finance options too.

Answer 5

Sorry but really the only thing you can do is pay off those vehicles. If they get repossessed the co-signer has to pay and it's a major bad mark on your credit which means NO new car. You can try to sell them for the payoff balance on the loans but if they really aren't worth the amount you most likely won't get it.

Answer 6

Next time lease a car if you don't want to finish buying it . I wouldn't be thinking of getting a new car if the one i have may get repossessed. A used one that is less expensive would be the way to go .

Answer 7

the co-signers would have to pay off the debt even if
the cars get re-possessed. Your screwed. The best
you can do is try to sell them privately and at least sell
them to pay off the loans.

Answer 8

Do you have a clue as to why you are so upside down on both vehicles? Probably you were upside down on the vehicles you traded in to buy these vehicles.

Without looking at your credit, I can tell that you won't qualify for new vehicle loans. You're already maxed out you debt to income -- you had to have co-signers for the vehicles you have.

The only way to dig yourself out of your upside down vehicle loans is to keep driving those vehicles and pay them off.

Answer 9

If you try to get a car loan they will laugh in your face. Who would finance someone is who cant pay their current payment. I am afraid you are out of luck.