I am thinking about giving up my car for voluntary repossession?

Question

I bought a car 2 years ago, they screwed me over at the dealeship badly and I was trying to resolve it for 2 years now and nothing happens but I'm still paying for it. So I own about 35,000$ on it, wanted to trade it in the other day but they only giving me 15,000$, you can get a same car for about 20K right now. I dont want to pay for it anymore, I dont care about the car, I dont even use it anymore, it will take forever to pay off that loan, even though I pay 1000$ a month for it insurance included, just waste of money. so I want to do voluntary repossession. will they still go after me to get ramaining balance even thought I am self employed? I also have a mortgage with my sister(50/50) will it effect her? I also used to have a consigner on the car but then I refinanced and tranffered to my name only, will they go after ex-cosigner? what are my other options? I'm also thinking about bankruptcy chapter 7. I'm in deep sh|t right now, I am 21 and live in WA

Answer 1

No matter what, you will owe the balance of your outstanding loan after whatever proceeds they get for your car. The loaning institution couldn't care less about you getting screwed by the dealership, all they want is the money back that they loaned you. Voluntary repossession is a bad idea. You still will owe what you owe and I promise you that they will sell the car for less than you can get. Sell the car on your own. And slowly pay off the loan.

Hopefully you learned something from this. 19 year olds have no business buying $35,000 cars. What the heck were you thinking? Make your next car purchase a business deal not an emotional one. Don't go into a car dealership drooling over a hot car you can't afford. Your next car should be a used and fuel efficient model. Your next car you should put at least 30% down on so you don't find yourself upside down so quickly. Best to downgrade and pay cash if you can (I did so on my last 3 cars, but I'm older and probably make a good deal more money than you).

In the meantime, cut your discretionary spending down to zero. Just buy what you need. Sell the things you bought that you didn't need on eBay to help pay this off. Think about a part time job to help pay your bills. Throw out your credit cards. Good luck.