Should I have my truck repossessed?

Question

I love my truck, but the payments are $350 a month with 24% interest, and now with gas prices rising it is costing me over $100 to fill it every 4-5 days, and this is with only driving to work and back! My father is very ill, I'm only 20 years old and am completely at a loss of what to do. I have considered having it repoed but have done some reading on this. A) It will stay on your credit report for 7 - 10 years. B) After they sell the vehicle at auction, whatever is still owed they will come after me for.

For example, I still owe $12,000 for it, but if they sell at auction for $9,000, then I still owe them $3,000? Is this correct?

I have tried selling it for the loan amount and tried offering people to take over payments,, and I just think with gas and the economy right now it is proving very difficult to sell. I've had for sale signs in it for 3 months now.

Anyway any help would be greatly appreciated. I've already contacted the leinholder and they weren't all that helpful.

Answer 1

Almost everything is correct except, you can not have someone take over payments.  That is totallly against the law.  You have a agreement with the lender and not the person who would be taking over the payments.  Try and refiance it somewhere else where the interest is around 8 to 9%.  You may not like this- But get a second job.  Tell the lein holder if they do not drop the interest it will be a voluntary repo, they want your money not the truck.  If they don't budge, then either work harder, get refinanced, sell it or get it repoed. It's that simple, no one wants to buy a PU now. Nobody.

Answer 2

Yes everything you think is correct. You will be liable for the difference of the auction price and what you owe. And letting it get repoed is never a good choice. My only advice is to work a second job, or do odd jobs on the weekend to make a little extra money.

good luck, and hope it works out.

Answer 3

Your basically right in everything you said. Lower the price of your truck and then agree to pay the balance to get the title. Do not let it get repoed. It will ruin your credit for years. Oh and never get a truck at 25% again. You got boned.

Answer 4

A third option might be to have your father, or some other family member take out a personal loan at a lower interest rate, pay off the truck, then you make payments on the loan. Just don't default  on the loan, as you'll be s******g the credit of your friend/family member.

Someone with good credit should be able to get a personal loan for around 10% or less.