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How do I get out from underneath a loan with the car company??

My family is stuck financially because we now have a loan with a car company that we just cannot afford right now! Before getting all snippy, when the loan for the car was made things were differently economically and financially for us then they are now. We will not be repaeting the mistake. We can't differ payments any more soooo..

Has anyone been in the position before? Any options other then reposession?

Answer Question
 
ethans_momma06

Asked by ethans_momma06 at 3:05 PM on Jan. 5, 2010 in Money & Work

Level 19 (6,870 Credits)
Answers (9)
  • I don't think you have options short of paying it off. I'd let them repo it. Then find a much cheaper car and pay cash.
    Anonymous

    Answer by Anonymous at 3:12 PM on Jan. 5, 2010

  • no other options that I know of...maybe sell it to someone else who wants and qualifies for it?
    charlotsomtimes

    Answer by charlotsomtimes at 3:12 PM on Jan. 5, 2010

  • *also just to let you know- if they repo it- then the IRS will want thiers in a couple of years...(when they charge it off you will owe taxes on that amount). I know because we have a $2000 bill from them at the moment on a truck we gave back like 5 years ago
    charlotsomtimes

    Answer by charlotsomtimes at 3:14 PM on Jan. 5, 2010

  • Have you tried talking with the car loan company about your situation? Sometimes they will work with on payment plans. The only other option I know of (short of getting a different loan to pay off the car or selling it) is voluntary repossession.
    Scuba

    Answer by Scuba at 3:14 PM on Jan. 5, 2010

  • Have you tried calling the place you have a car loan from and just asking if there is anything that can be done to lower your payments? Sometimes they can increase the number of years left on your loan but it reduces your monthly payments. It can't hurt to call and just ask them if there's anything they can do to help. I'm sure they'd rather keep your business than go to the time and expense for them to repo it.
    Anonymous

    Answer by Anonymous at 3:16 PM on Jan. 5, 2010

  • Snippy?
    Anonymous

    Answer by Anonymous at 4:56 PM on Jan. 5, 2010

  • If I'm reading this right, then you owe more on your car than it is worth. Correct? So you can't just sell it, pay off the loan and be on your merry way...

    The bank already knows that you are upside down in your loan. The trick is getting them to admit it. Say you owe $15,000 on a car that is only worth $13,000- you'll want to sell the car for $13,000 an get a loan for $2000. Go in and talk to the bank and explain your situation. Also bring in documentation of how much the car is worth from Kelley Blue Book (KBB.com). If they repoed the car you'd still owe them the difference. So they might as well let you sell the car an get a loan for the difference. Also you can drastically lower your payments when you only owe $2000. Or whatever the difference is. BUT you'll have to be able to make some type of payment to them.

    Also check out DaveRamsey.com or Dave Ramsey Fans on Cafemom. There is tons of helpful information in there.
    Anonymous

    Answer by Anonymous at 5:54 PM on Jan. 5, 2010

  • We did the same thing.

    We went back to the car lot with the car, told them we didn't want it anymore, that we couldn't pay the bill and didn't want them to have to go to the trouble to repo it. They tried to talk us out of it but we stayed strong. They took the car back and we didn't pay anything.

    Crap happens. Turn the car back in to them.
    Anonymous

    Answer by Anonymous at 3:04 PM on Jan. 6, 2010

  • you will ruin your credit...I would refinance and see what happens or talk to the loan company because even if you give back the car you'll still owe on it and more than likely you'll still have to make the same payments
    chica679

    Answer by chica679 at 11:20 AM on Jan. 9, 2010

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