So how bad is surrendering a car with a loan? *UPDATE*

[GundamW]

Like most say, sell it yourself and pay the difference.

Too bad you don't have a Hyundai. I think they let you return your new car when you loss your job.

 

[Numenorean]

loan balance is $11,000 it's worth maybe 7-8k... It's a versa after all. I got it because it offered 35mpg (I commuted 30 miles each way), but it's a shitty shitty car. I bet I'd get $6k for it, meaning I'd still be in the hole for 5 grand.

You could sell it and put that money in a savings account, continue to pay the loan, but drop the insurance. Then you can use that savings money from time to time if you really need it.

Problem is - how to sell a car that still has a lien on it - you would likely need to get a personal loan to pay off the full amount of the car so that you could legally sell it first, and then you would be paying on that personal loan. Which would probably suck as interest rates I bet would be worse.

 

[nickbits]

Drive it off a cliff

 

[Eli]

AFAIK, you don't get something removed from your credit report unless it is erroneous. The charge-off will stay in your credit history for 7 years.

This is a terrible, terrible idea.

 

[kranky]

If you let them repo it, it will get sold for a lot less than $6K, and you will still owe the balance of the loan. Take out a personal loan, borrow from relatives, sell some stuff you don't need, take a night job stocking shelves at Walmart, whatever, but sell the car yourself and pay off the balance. It's absolutely not worth ruining your credit for 7 years for $5,000. A repo is not like a late payment. It's a huge hit.

 

[slackerinabox]

If you let them repo it, it will get sold for a lot less than $6K, and you will still owe the balance of the loan. Take out a personal loan, borrow from relatives, sell some stuff you don't need, take a night job stocking shelves at Walmart, whatever, but sell the car yourself and pay off the balance. It's absolutely not worth ruining your credit for 7 years for $5,000. A repo is not like a late payment. It's a huge hit.

Understood... Going to go with either selling or trying to budget in the car and road tripping to make it worthwhile... Or join costco!

 

[Numenorean]

Drive it off a cliff

Yes. Commit insurance fraud. Awesome.

 

[arcenite]

Yes. Commit insurance fraud. Awesome.

It's actually not fraud if he actually drives it off of a cliff... It might be criminal for other reasons, but it's certainly not insurance fraud.

 

[Cogman]

As others have said, sell the car.

Canceling your insurance should also provide you with a hefty cash increase. If you are really hurting, take out a loan at a higher rate (it may even have a lower rate right now) with a lower monthly payment to pay off the balance.

Letting the bank repo your car is a BAD idea.

 

[Gunslinger08]

Pay it off or sell it and pay off the difference.

 

[coloumb]

Too bad there isn't a system in place so you could rent the car - just as you can go through a company to rent a house you own.

 

[BoomerD]

If you surrender the car, it goes on your credit as a voluntary repo...not much better than if they actually come and take it.

IMO, either keep making the payments and live with owning a car you don't really need...or make arrangements with the finance company to sell the car for whatever you can get, and pay the rest. USUALLY, your "pay-off" is much less than the actual loan balance as calculated for the life of the loan. (you save some on interest you don't have to pay)

Only you & your wife can decide what's actually best for your situation, but IMO, the voluntary repo is the worst option. (other than making the bank repo it themselves)

 

[coloumb]

Here you go -

http://www.ftc.gov/bcp/edu/pubs/consumer/autos/aut14.shtm

You could keep the car and insure it as being garaged (not being driven).
Sell it to someone else and get a loan to pay off the difference
Try to get someone else to take over payments

 

[GuitarDaddy]

Whats the year model, trim, and mileage ?

You may not be as upside down as you think


the 2008's with 20k-50kmi I'm seeing are priced $9k-$13k

If you bought it new and it's never been wrecked, I don't see any possible way your upside down $5000

 

[Tea Bag]

Whats the year model, trim, and mileage ?

You may not be as upside down as you think

That's what I was thinking, it looks like market value on that car, assuming it's an 07 which is the first year they came out is around 8k, I don't know where you're getting 6K from..

Letting the car get repo'd is a horrible idea. Eat the 3-4 grand and sell it.

 

[BoomerD]

BTW, if the finance company ends up with the car, they'll generally just wholesale it...and you're still responsible for the balance. I'd be surprised if they got half of what you owe on the car.

 

[zerocool84]

Whats the year model, trim, and mileage ?

You may not be as upside down as you think


the 2008's with 20k-50kmi I'm seeing are priced $9k-$13k

If you bought it new and it's never been wrecked, I don't see any possible way your upside down $5000

Sounds like those prices are private seller and those are always higher and you almost never get those prices. He's lucky to get $6k for it.

 

[Corporate Thug]

holy shit...$380 /mo for a Versa.

 

[1sikbITCH]

You'll probably just be laid off again and need the car to drive to your new job. Think positive!

 

[highland145]

It's actually not fraud if he actually drives it off of a cliff... It might be criminal for other reasons, but it's certainly not insurance fraud.

If the op were in it.....No. That won't work.:sneaky:

BTW, if the finance company ends up with the car, they'll generally just wholesale it...and you're still responsible for the balance. I'd be surprised if they got half of what you owe on the car.

This.

I mentioned the 1099C earlier. You will get one for the charged off amount.

 

[Jeraden]

My wife just bought a used Versa about 6 months ago. When shopping around for them, resale values were actually really high. They seem to retain their value well.

 

[NetWareHead]

You have a house? How much equity do you have in the house? You already have excellent credit so get a second mortgage for the sum needed to buy out the loan on the car. Then you can sell it. You will enjoy a substantially lower interest rate on a second mortgage versus a regular loan.

 

[BarkingGhostar]

My last job required a car to commute (not reachable by public transportation) but unfortunately I was laid off only 1 year into my car loan. My current job makes my car absolutely unnecessary now and I'm stuck with a $380 payment and $120 for insurance - $500 that's absolutely wasted.

I'm upside down on the loan (a cheapie nissan versa, not a BMW - keep the snooty attitude about living beyond my means to yourself!) and I expect to make less at this current job than the last, so that extra $500 will come in very handy.

I already have reached my before-30s goal of buying a house and don't anticipate needing credit for 2 years... My wife thinks we should just surrender the car or let them repo it but that seems dangerous, but wasting $500 a month for a car when I have a subway station across the street in NYC is getting tiring.

Knowing defaulting on a debt in order to skirt your responsibility is poor integrity.

Asking the bank to take possession of the vehicle is asking them to be at burden--and they ain't in the business of accepting your poor integrity. Sell the vehicle and take out a personal loan to make up for the difference (ahem, be responsible).

 

[OILFIELDTRASH]

Stop paying and keep driving it till it gets repo'ed.


Srsly though keep paying long as you can. If it gets to the point where it's the light bill or car then drop it. Just keep pluggin away at it and before you know it you'll have it paid off. Good luck.

 

[thepd7]

sell it