the payoff is more than the value of the truck. My husband wants to give it back to the finance company (wells fargo), but what will happen to his credit? Will he be able to get another car/truck with lower payments? We have also heard that the finance company will re-sell the truck for a lower price and still charge my husband the balance of what he owed on it. We can't refinance, or trade it... this payment has become a huge financial burden, any idea's? (2005 Ford F-150 STX balance owed 21,000. Another truck was traded in on this one, with the balance of the previous truck added to this one)
2007-10-29 05:08:19 · 6 answers · asked by jezuzgirl 4 in Business & Finance ➔ Credit
Thanks Fred, but that answer didn't help me at all, the fact is that we are in the situation, and want to find out what options we have NOW... we can't go back and change decisions that were made... sometimes life's situations change, and this had nothing to do with being "irresponsible"...
2007-10-29 05:15:08 · update #1
Auto finance is what I do for a living and this is a common problem due to long finance terms and people being upside down when they buy the vehicles.
Wells Fargo is my largest bank and I can assure you they will sell the vehicle at auction for less then it's worth and come after your husband for the balance plus all fees for the repossession, towing, storage, reconditioning, interest and lawyers, this will amount to several thousand dollars and if he does not pay they can and will sue him in court, get a judgment and then they can garnish wages, (if your State allows it) attach bank accounts and file liens on any other property he may own like cars, boats, land and homes.
All of this activity will show on his credit report 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.
You would be a lot better off selling it yourself and taking out a loan so you can pay the difference, this way his credit does not get ruined.
2007-10-29 05:19:51 · answer #1 · answered by ? 7 · 3⤊ 0⤋
Do not give this back to the finance company. That is called a voluntary repossession and it is just as bad as a regular repossession. Unfortunately you are stuck with a bad decision you made when you originally bought the truck. You borrowed X amount of dollars and you owe the creditor X amount plus interest. They do not want your truck, just their money according the agreement.
If you do wind up "giving" them back the truck, they will sell it at auction and probably get way less than 21,000 for it. You would be responsible for making up the difference. Plus you will have a default on your credit and it will be very hard to get financed for another vehicle or mortage for quite a while.
Do whatever you can keep up with this loan. Do not roll this debt into another vehicle again. You are creating a spiral of debt that has nowhere to go but up.
2007-10-29 05:16:57 · answer #2 · answered by Jay P 7 · 2⤊ 0⤋
My husband and i were in a similar situation a few years back. The car was in my husband's name, so I got a loan for a lower priced car in my name, then we called the finance company and had them take the car. They sold it and my husband is garnished 30 dollars a week out of his pay for the balance. It does show as a repo, but we had a decent (cheaper) car and last year we were able to both go on a car loan together.
2007-10-29 05:21:24 · answer #3 · answered by Anonymous · 1⤊ 0⤋
My daughter and husband had exact same problem, they checked out every avenue they could, all came down to the same bad results, what they ended up doing, was selling it outright for the best price they could, paid off the finance company that amount and ended up getting a small loan at a lower finance rate to pay the remaining amount off, as their credit was still intact, (if you have good credit, you can get a loan for as little as 3-4%) which they could handle. They just had to bite the bullit and learn a good life lesson, but at least they are out of it with their credit ok, and believe me, that was really important.
2007-10-29 05:21:49 · answer #4 · answered by sweetyebug3 4 · 2⤊ 0⤋
in case you basically have a 300 and sixty 5 days of money left and the motor vehicle is in stable situation i might seem to refinance from yet another monetary enterprise , credit union . looking on your pastime value , placing the stability on a mastercard could be an selection yet verify your costs of pastime intently. If it has a particularly excessive industry value then advertising it privately could be the extra advantageous selection. You wont get plenty for it as a commerce in on a decrease priced motor vehicle. you ought to be waiting to get some monetary suggestion out of your monetary enterprise, an assistant supervisor , or supervisor , it does count plenty on the monetary enterprise.
2016-10-14 08:05:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Pray not to be so irresponsible next time. Stick the finance company with it and you will never get a car loan again.
2007-10-29 05:11:42 · answer #6 · answered by Fred S - AM Cappo Di Tutti Capi 5 · 0⤊ 6⤋