money/car issue?

Question

ok i still own 25.000 on my car (12%= 600 a month payment)the value of that viecule is about 14.000..I know its crazy!!!anyway i'm in finacial crysis and no paystop to show for, due to leaving my job(pregnacy problems)...what would be the best solution//repo? but i dont want to ruin my credit ..if i trad-in plus remain balance owed it might come out to the same amount...is there anyother solution?..refinance is not a option..

Answer 1

Contact your creditor and tell them your situation. Tell them what you can pay for now. Most will work with you if you are honest with them. They may even restructure your payments for a certain period of time.

If you get your car repo'd, you can still pay on it till auction time. This will bring down your debt. Once the car has been sold you will still be responsible for the difference between what they sold it for and what you still owed on it. Once you have paid that difference, they will mark it as paid on your credit report, and it will keep your credit from being totally ruined. Paying a little something each month is better than not paying anything each month. It is better to submit a partial payment each month than to miss even one payment. Creditors like this because it shows you are making an effort.


***** If you trade the car in for another one, they will simply add what you owe on your current vehicle to the loan amount for the new car. This is NEVER a good idea. You will not get a lower payment this way! ******

Answer 2

Basically, you're screwed. You can talk to the lender. Maybe they can give you a payment holiday for a few months, or stretch out the loan to reduce the payments. But basically, you are upside down on the car and can't sell without coughing up $11k.

Going to a dealer and doing a trade in will only get you deeper into debt. The upside down amount on this car will get rolled into the new car. Even if you buy a $1,000 car and trade this one in, you'll still have a $12,000 loan to make payments on.

If none of those other options work, a repo may be the only option.

Sorry I can't be more helpful.

Answer 3

I would try to do a trade in where the dealer you get your new car from pays off the balance and keeps the car, and you get a used car you can afford (the dealership will pay it off all at once - and often they make deals between each other, so their price will be MUCH lower than yours). A friend back in college did it, it was her best option, and worked out well - her credit score actually got better for it. Good luck, and congrats on the upcoming baby (best of wishes with that also!)!

As a last resort, just let them repo it, (don't make them come and get it - turn it in) and dont delay doing that - sometimes they wont report it to the credit agencies if they find you to be honorable - no joke - it does nothing benificial for them. And if they do, you have the legal right to have an addendum put on it with your challenge to it and/or explanation (like serious medical issues) that will curry favor with future potential creditors, as they see that its a one time thing with you, and you arent a habitual bad debtor. At the worst, you can try to file for bankruptcy, though it is a bit harder these days - thank Bush for that ;)

Answer 4

You can go to a dealer and see what your options are as far as buying something new. Be aware though, that when the dealer offers to "pay off your trade-in, no matter how much you owe," you are actually paying the difference between what you owe and what your car is worth. Maybe you could get a decent used car and lower your monthly payments.

Another option would be to contact your finance company and explain your situation. Sometimes, finance companies will work with you. They may be able to defer a few payments to the end of the loan.

When you purchased your car, did you take any of the add-on products offered when you signed your contract? Many dealers offer a life & disability policy. If you purchased that, file a claim and your payments will be paid for you.

Answer 5

ok, alongside with your interest being temporary, will it lay-off for countless months and %. back up, or is this the top of the settlement? i'd be searching for jobs now, and do the college ingredient when I actual have a job. in case you have an entire employment council on your area, you could pass there, and that they're going to pay on your education reckoning on the money and the interest industry. Do you have any kin you could stay with? If I have been you, i does no longer purchase that automobile, considering it is only too lots stuff incorrect with it, i'd only save catching the bus, and put in for jobs on line, persist with for my temp business enterprise jobs, in case you could no longer get an eternal one. you need to use that money to get a CNA license, and do CNA artwork. it is everlasting, and could pay a minimum of 9-10 dollars an hour. then you definately would desire to persist with for low-income housing, and save as much as get a extra solid automobile. that's what i'd do. protection is yet another field it is often hiring. All you % is to be eligible for commision on your state. Then reckoning on the place you artwork, they have training reimbursent some places. protection is exceptionally basic, after which you will have time to persist with for faculties, whilst nonetheless paying lease. seem into looking a job first, then take the money you have and pay your lease up, so which you will desire to purchase some extra time the place you reside at now, then attempt those supplies I instructed you approximately, persist with for cover and CNA jobs, then artwork on the college ingredient final. solid luck! additionally, seem on Craigslist, you're able to lease out a room, from somebody or see in case you may get a roommate.

Answer 6

Wow...those payments and interest are ridiculous. Honestly, you need to trade you car in for a cheaper one. 600 a month is way too much for a car thats only worth 14,000 and in the end you end up pay 25,000 for it. I would definitely go to your dealer and see what you can do. How long have you had the car? If it is fairly recent and they offer you a lower monthly payment you can turn it down and return the car. This is ONLY if they make you another offer for monthly payments. Good Luck, in the future from what Ive been told, you hould never accept interst over 7.9% (and thats the HIGHEST) and a car payment should only be 1/4 of your net monthly income.

Answer 7

I've go to be honest with you. If you are paying 12% on a car loan then you don't have stellar credit to begin with. If there is no way for you to afford this car or sell it and get the majority of your money back then you should probably just let it get reposessed.

Answer 8

Take two car notes and buy a cash car then call your finance company and tell them to come and get their car. They will try to talk you out of this but stick to your guns. Your credit will look bad regardless but you will have something to drive and no car note. when your money is in a better situation you will still be able to get financed just like before.

Answer 9

Trade it in for a 200 dollar car.

Answer 10

Lesson learned.