i have been put on disability and don't get enough money to make my horrible car payment of $976.00 and to support 5 kids as a divorced mom...I have callled Toyota multiple times to see what they can do for me...they said im stuck with the loan...i tried getting a refi on my car by 2 banks, but it can't be done because i had a bk 8 years ago and it's affecting my credit...im so stressed out that im thinking about filing bk on my car alone...i owe $45.000. on it. there has to be something i can do to lower the payment and not file bk again...?
2007-10-09 10:57:15 · 4 answers · asked by renee 1 in Business & Finance ➔ Credit
whoa, what are you doing with a car payment that high anyway? Can you trade it in? Sorry I don't have much in the way of help, but good luck!
2007-10-09 11:07:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I'm sorry about what's happening, I know what it's like to have your life suddenly go sideways.
There's really not much you can do if you're on disability. I used to sell cars and I know. You're income is probably a lot less than what you were making before, plus if you owe $45,000 on the car you are way upside down. You must have rolled another vehicle into this loan for you to owe this much.
Being upside down, plus your lower income situation, is what is combining to make the banks not want to refinance the loan.
If you can get along without a car for a couple months then contact the bank and tell them that you are going to "voluntarily reposess" the car. While it will hit your credit the same as a reposession instigated by the bank will, at least it gets you out from under the loan. Once you call the lender then take the car to the dealership to "drop it off" for a voluntary reposession. They might have some papers for you to sign.
Take some of the money you were using to make the car loan and save it for a couple months to buy a car for cash.
Another option: If you bought a lot of after market stuff (extended warranty, GAP, any type of tire warranties or protection), gather up all the paperwork and go back to the dealership for a refund. They MUST cash back a portion of this money to you which you can then turn around and pay to Toyota to lower the amount you owe on the vehicle. Then someone might work with you on a refinance.
If, however the bulk of that high loan amount is due to the fact that you rolled another car loan into it, then don't bother. You're really, really stuck. Take the hit and voluntarily reposess the car.
I'm very sorry about your situation. But it's better to take the hit now and stop the bleeding then it is to keep struggling every month.
Good luck to you!
2007-10-09 11:42:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Just what were you thinking or were you when you bought this car.You have bitten off more than you can chew.
My advice is to let the car company repossess the car. According to the document below, the do have a right to try to collect on the balance after they have sold your car at auction. Of course they will stick you with all the costs involved.
You can attempt to sell the car to someone else who may just assume the loan. I am sure Toyota will allow that. But to attempt to refinance it, well I got that from my credit union when I was about one year out of bk myself. The car was a year old when I bought it, and the note was a year old @19.8%. They allowed me to refinance it for 5 years at 9.8%.
2007-10-09 11:13:05 · answer #3 · answered by Steveo 5 · 0⤊ 1⤋
SELL THE CAR. Ever if you have to get a smaller loan for the difference between what it sells for and what you owe, you will be MUCH better off. If you file Bankruptcy, you will lose the car anyway. The vehicle allowance in bankruptcy is NOT that high in any state.
2007-10-09 12:54:54 · answer #4 · answered by STEVEN F 7 · 1⤊ 0⤋