I was helping my bf financing a car since he has no credit, but now he is planning to stop the car monthly payment because even he sell the car now, he still own the bank for 6k. So he is planning to let the bank tow away the car instead. What should I do? I don’t want it to hurt my APR.
2007-10-02 08:41:21 · 5 answers · asked by Nicole 1 in Business & Finance ➔ Credit
Auto finance is what I do for a living and if the car is financed in your name, take it away from your boyfriend and make the payments yourself.
If you let it 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 the repossession, towing, storage, reconditioning, interest, lawyers and anything else they can think of.
This will amount to several thousand dollars and if you don't' pay they can take you to court and get a judgment, at that point they can attach bank account, 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 and ruin your credit for the next 7-years making it very hard to get any other type of loan without making massive down payments, paying huge fees and State maximum interest rates.
O.B.T.W. get another boyfriend.
2007-10-02 08:52:59 · answer #1 · answered by ? 7 · 2⤊ 0⤋
One the bank will auction off the car wholesale, and he will still owe the balance that the sale does not cover; plus the court cost the bank paid to repo the car. Average is 1800.00 dollars at a higher rate of interest. This will sink your credit rating for three or more years and you will need to rebuild it.
The other choice is: he sell the car out right for 6K give this money to the bank and the bank will give the new owner the title. Or sell it balance owe and the person deals directly with the bank OR brake off the relation ship and sue him!
2007-10-02 08:58:33 · answer #2 · answered by zipper 7 · 0⤊ 0⤋
You could speak to the finance people and tell them your situation they may lower payments on a temp basis. As for your bad credit if you have defaults less than six years old they will still show on your report so you would still be in the same situation as to finance although you have paid this finance for 15 months it doesnt help your credit rating until you are free from defaults. The last thing the finance company want is to reposses the car so as i said talk to them. Hope this helps
2016-05-19 16:19:11 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Girl !!
get the keys now. change the locks.
ur name on loan? u owe the money and fees and legal bills when they repo.
dump the bf leech take the car , hope ur name is on title.
if not get 2 more jobs so u can pay off the hard lesson u will learn.
2007-10-02 09:46:51 · answer #4 · answered by Anonymous · 0⤊ 0⤋
who signed for the loan? Whoever signed for the loan is legally responsible for the repayment of the loan. If you signed on the loan, they will come after you for the payment on the loan.
If the bank repossesses the car, it will be reported as bad credit for whoever signed on the loan, and it will be difficult or impossible for you to get credit for several years.
2007-10-02 08:54:44 · answer #5 · answered by Leah 4 · 0⤊ 0⤋