I need to get rid of my financed 04' grand cherroke. Help!?

Question

So here is the situation. I bought this car in '06. I owe like 10k more than it is worth. I cant afford the payments any longer and do no want the car to get repoed. Is there anyway that i can back out of this finicial agreement. Can i go back to the bank and tell them my situation? Go to the dealer? My mother is the co-signer on the car and i don't want to hurt her credit.

Answer 1

That sucks!  Have someone steal it, drive it off a cliff and you collect the insurance....or...

Try to sell it out right and make payments on the difference.

Nothing else you can do....

Answer 2

Um, yeah... don't try the insurance fraud route as suggested earlier.

If you're looking for some loophole or magic way out of the contract, it doesn't exist. This question gets asked in some form or fashion at least 10 times a day.

Don't go to the dealer, they cannot help. Trying to trade $10K upside-down won't happen with weak credit. No bank will overallow that much negative equity.

As you probably know, nobody's going to want to buy your car privately, either. Who would want to pay $10K more for something they can get for way less?

If you decide to give up and try to turn it back in to the lender, it's a "voluntary" repo and carries the same repercussions as a regular repossession. Your Jeep will be auctioned off, and you'll be responsible to pay the difference between what it brings at auction and what you owe. So, you only THINK you're done when you turn it in. You will end up owing thousands on a car you no longer drive. And yes, your mom's credit will be ruined, too.

I would call your lender and see if they can work with you. They don't want a repo, either (it's time, hassle, labor, fees, etc.). If you ignore them, it'll only get worse. Best to call them as soon as possible to work out a solution.

Good luck.

**EDIT** - For those of you telling her to pull some sort of insurance scam, consider this: without gap insurance, she'd still be liable for the difference her car's book value brings and what she owes on it. If she "wrecked it" or "had it stolen", insurance will only cover market value on the vehicle, they WILL NOT pay it off completely. So, she's still on the hook for thousands of dollars. Sound like good advice?

Answer 3

i assume you have full coverage insurance.....you need to have someone get rid of it for you then collect insuance payment.............any questions

Answer 4

There is no way to back out of a contract after 2 years, your best option is to sell the car privately, get a loan for the difference and pay off the outstanding balance over time. Otherwise your mother is on the hook for the money.

Answer 5

only option is find a buyer to buy at payoff amount-talking to loan officer will not do any good-its a contract-talk to dealer they might be able to sell it for you but you still owe payments till sold