Ok guys,as many of you have seen from previous posts I am going through a divorce...Of course bought cars to make the spouse happy, what i may have to pay in child support would kill me, which i dont mind because i have to take care of my kiddos....in the meantime if thinking of buying a cheap commuter car and having conversation with bank and handing over keys....I know its not right,but desperate times call for desperate measures....anyone ever done this...thoughts? My credit score is currently 730 which i know could drop 100 points but honestly have no intent of making big purchases and am in survival/panic mode....Thanks
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Use that as last resort as it will be on your credit for 7 yrs. idea would be get a quote from someone like carmax to buy it. Advertise it and try to sell, even talk to the bank see if anything can be done to lower payment.
You got good credit and its looked at by so many now days so give it back to the bank as a last resort . -
I hear ya.thxComment
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Why not try selling it first? Unless you're seriously upside down in it, selling it even for a small loss, will likely be a much better step long term. Banks are not in the used car business. They'll either put it on their lot and take and the first decent offer that comes by or they will sell it to a wholesaler who will make some money by running it through an auto auction (which means the bank sold it to the wholesaler for less than the auction price.)
Unless you're pants are on fire or you need that car payment money to eat this month or you're thousands upside down in the vehicle, you'd make a very poor choice to just give it back to the bank.
PM me if you have any other questions.
LWDComment
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Im seriously upside down...should have stated thatComment
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Keep this in mind, if you turn it in, they will sell it and you will be responsible for the difference between their selling price and your loan.
Say you owe 20K. They sell it for 15K. You're responsible for the 5K difference.Last edited by icetrauma; 08-27-2014, 05:11 AM.Comment
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Don't give it to the bank. Sell it even if your upside down a bit.Comment
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Lwd...pmdComment
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If i dont have the money...Comment
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Your score will go down more than 100pts. Probably drop you down to about 500 for 2 years. LAST RESORT. Sell it out right first. Go to CarMax. Low credit score screws you in so many ways.Comment
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Here is what happens on a repo.
Repossession happens and the vehicle is towed to the storage yard, then to the nearest manheim auction. The title will arrive within the first two weeks its at the auction premises and it will be auctioned off. The lien holder will apply the sale price to whats owed and you will still be held accountable for the balance.
Same thing will happen if you attempt to turn it in, most dealerships/banks WILL NOT take a vehicle back until its 3-4 months delinquent.
As others have said, attempt to sell it first..
I hate to hear that you are having to deal with this, I wish you the best of luck brother.Comment
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also, once you make arrangements to payoff the difference from the low ball sale price and the loan amount. it will still show as a write off on your credit report. meaning the bank reports the difference as bad debt, even after you pay it.Comment
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Try Carmax or Texas Direct Auto. They will give you a fair price. May get a loan for the small amount if you are upside down to make up the difference. Don't tell them you NEED to get rid of it when you get it appraised.
This would be better than letting it go and take the hit!Comment
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Good info..thxComment
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Originally posted by icetrauma View Post
Typically just charge that off and call it income to you, so all you'd have is income tax on 5kComment
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