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

[FDF12389]

I dont understand how you are paying 380 a month on a car that cheap and are upside down, you either paid sticker, got a real shitty interest rate, or both.

 

[PricklyPete]

I dont understand how you are paying 380 a month on a car that cheap and are upside down, you either paid sticker, got a real shitty interest rate, or both.

Agreed...does seem really odd.

If the car costs $14K and you had 21% interest (is that even possible) over 5 years...you'd get to $380 a month. It makes me shudder to think the OP has such a high interest rate or even paid $14K or more for a Versa. If he OP has a shorter loan period to justify the loan amount...I don't see how he could be underwater.

 

[Raduque]

We'll need notes outlining this procedure, but what to call them? :hmm:

Off the Cliff Notes?

 

[zinfamous]

Drive it off a cliff

don't forget the stuffed freedomsbeat dummy in the car, too. Should take care of several more problems that OP may or may not have.

:thumbsup:

 

[Perknose]

Off the Cliff Notes?

No flies upon thee!

 

[Mahaguru]

All the people telling him to sell, I thought you couldn't sell a car which had a loan on it? The title doesn't belong to you.

 

[Mahaguru]

If you do want to total it and collect on GAP insurance for the loan difference, there are bodyshops that can do that for you, basically involves "destruction of high cost accessories" airbags, glass, etc. and leaving all major mechanicals so you get maximum salvage value. Your ins company will total based on % of cars value. Of course you need comp cvg, less ded....In NYC they are so worried about pip/liab fraud from the russians, the 1st party PD stuff is small potatoes.

lol.. is a rugged looking gentleman by the name of Niko Bellic involved?

 

[Mermaidman]

Agreed...does seem really odd.

If the car costs $14K and you had 21% interest (is that even possible) over 5 years...you'd get to $380 a month. It makes me shudder to think the OP has such a high interest rate or even paid $14K or more for a Versa. If he OP has a shorter loan period to justify the loan amount...I don't see how he could be underwater.

Or he rolled a previous car loan into the Versa's loan. Perpetual cycle of debt.

 

[summit]

Or he rolled a previous car loan into the Versa's loan. Perpetual cycle of debt.

he said he bought said car because he didn't have one for the long commute. what did op do to the car? is it being repoed as we speak?

 

[Mike Gayner]

The attitude that fuelled this thread is a prime example of the trend towards Americans refusing to accept personal responsibility for their decisions. This has resulted ultimately in your ridiculous government enforced lending policies where people are entitled to walk away from home loans when they get underwater, which creates a vicious cycle, further forcing prices down, and is what will lead to an extended period of very poor performance in the housing market.

Not to mention the cause of the housing slump in the first place, which again is government policies forcing banks to lend to people who weren't credit-worthy in the first place.

Once again, LOLAmerica.

 

[QueBert]

All the people telling him to sell, I thought you couldn't sell a car which had a loan on it? The title doesn't belong to you.

He can't, the best could hope for is to find somebody willing to take over the payments. But anyone willing to do that isn't going to pay him much, if anything.

 

[alkemyst]

All the people telling him to sell, I thought you couldn't sell a car which had a loan on it? The title doesn't belong to you.

lolwut?

The way it works is you send the funds to the finance company to pay off the loan, then the title comes and you handle the transfer.

You don't buy many newer cars do you?

 

[Sho'Nuff]

You would be 'in the hole' either way. If the bank repossesses the car and auctions it off for squat, then it will come after you for the difference. Better that you sell it yourself.

And . . . $380/mo for a Versa?! $120/mo for insurance for a Versa?!

MSRP for a versa is $16,900. If he financed 100% of it for four years at 6% interest, the payment would be ~$390 a month. So maybe he got a few hundred bucks off. Or made a small down payment. Or took out a shorter term loan. Or did any number of other things that would make his payment that high. It it not hard at all to have a 300-400 car payment.

As to insurance, depends on location. When I was in Massachusetts, my insurance was 3X more expensive than it was when I was in Virginia. I went from $690 a year for two cars, to more than $2000 a year. No accidents or tickets. Just a change in the frickin state.

 

[dawp]

maybe just go with liability? I dropped full coverage before my loan was done and the finance company never said one word when I did.

 

[Gibson486]

The attitude that fuelled this thread is a prime example of the trend towards Americans refusing to accept personal responsibility for their decisions. This has resulted ultimately in your ridiculous government enforced lending policies where people are entitled to walk away from home loans when they get underwater, which creates a vicious cycle, further forcing prices down, and is what will lead to an extended period of very poor performance in the housing market.

Not to mention the cause of the housing slump in the first place, which again is government policies forcing banks to lend to people who weren't credit-worthy in the first place.

Once again, LOLAmerica.

you do investments with more countries than just America, but They still do business with them any ways even though we are in the red....So, Lol at your country, which is also in the red.

 

[boomhower]

maybe just go with liability? I dropped full coverage before my loan was done and the finance company never said one word when I did.

They just didn't find out. Most insurance companies will not let you when the vehicle is financed. If they found out they would have demanded the loan be fulfilled.

 

[Homerboy]

you do investments with more countries than just America, but They still do business with them any ways even though we are in the red....So, Lol at your country, which is also in the red.

Don't mind him Gibson. He will find ANY possibility to bitch about and ridicule America(ns) in any and every thread. He's a completely broken record. Over and over and over again....

Not only is he a troll, but he's only got 1 trick up his sleeve.

 

[alkemyst]

The attitude that fuelled this thread is a prime example of the trend towards Americans refusing to accept personal responsibility for their decisions. This has resulted ultimately in your ridiculous government enforced lending policies where people are entitled to walk away from home loans when they get underwater, which creates a vicious cycle, further forcing prices down, and is what will lead to an extended period of very poor performance in the housing market.

Not to mention the cause of the housing slump in the first place, which again is government policies forcing banks to lend to people who weren't credit-worthy in the first place.

Once again, LOLAmerica.

If more of you third world dwellers paid us back we wouldn't be so broke.

 

[TwiceOver]

If you can pay the loan and you agreed to it, there is no reason to surrender the vehicle.

Stop being a pussy and pay your debts.

 

[JoeBleed]

loan balance is $11,000 it's worth maybe 7-8k

You aren't getting this 11k figure from just adding up the payments you have left are you? if so call your finance company and ask what the current pay off price would be. That would take out some of the 11k. How much depends on your interest rate and if you've paid over the 380 payment any before. You only need to pay the remaining principle of the loan, not the remaining interest if you pay it off completely.

I'd really try and pay off the loan and not turn it in. It isn't worth it for such a little amount of debt that it really is.

 

[PricklyPete]

MSRP for a versa is $16,900. If he financed 100% of it for four years at 6% interest, the payment would be ~$390 a month. So maybe he got a few hundred bucks off. Or made a small down payment. Or took out a shorter term loan. Or did any number of other things that would make his payment that high. It it not hard at all to have a 300-400 car payment.

As to insurance, depends on location. When I was in Massachusetts, my insurance was 3X more expensive than it was when I was in Virginia. I went from $690 a year for two cars, to more than $2000 a year. No accidents or tickets. Just a change in the frickin state.

I just threw up a little in my mouth. Tell me that was a typo and your math was based on a typo. $17K for a Versa?!?! If that really is true...paying MSRP for that vehicle should be a crime.

 

[PricklyPete]

The attitude that fuelled this thread is a prime example of the trend towards Americans refusing to accept personal responsibility for their decisions. This has resulted ultimately in your ridiculous government enforced lending policies where people are entitled to walk away from home loans when they get underwater, which creates a vicious cycle, further forcing prices down, and is what will lead to an extended period of very poor performance in the housing market.

Not to mention the cause of the housing slump in the first place, which again is government policies forcing banks to lend to people who weren't credit-worthy in the first place.

Once again, LOLAmerica.

LOL at New Zealand who seems to be so dependent on America that you get pissed off about our negligence.

 

[Mike Gayner]

If more of you third world dwellers paid us back we wouldn't be so broke.

a) NZ third world? LOL more American geography fail.

b) America is a debtor to most countries, including many third world countries.

 

[alkemyst]

a) NZ third world? LOL more American geography fail.

b) America is a debtor to most countries, including many third world countries.

Stick with the kangaroos kid and loling about how prostitute teachers are just fine by NZ standards.

 

[IceBergSLiM]

All the people telling him to sell, I thought you couldn't sell a car which had a loan on it? The title doesn't belong to you.

you can call the bank and have them pull the title. Show up with buyer and pay off cash exchange for title. done.