Voluntary Repo???

Question

I just bought a 2002 malibu back on may 9, 2008. i didnt really know any better because i just came back from overseas and wanted to get a vehicle as soon as possible. well here it is june 28th 2008 and after getting information from one of my sergeants i decided to look up information on my car. apparently my car is only worth $3,000 but I'm paying $16,000 for it. I'm thinking about doing voluntary repo because I went to dealers to trade it in and no one wants it. So no I'm stuck wasting money on a car that isnt even worth it and plus its triple the amount its worth. I thought about selling it but even then i would still be $13,000 in depth. Any advice because in three days I plan on turning it in.

Answer 1

Don't get it repossesd, it will destry your credit rating. Sell it to someone like youreslf for $15k ish.

Answer 2

Well, hopefully you learned your lesson. If you voluntarily turn in your car, you are actually surrendering it back to the bank and it will turn up on you credit report as a repo. The bank will auction it off and you will still be responsible for the balance. So if you say your car is worth $3000, then it will most likely get auctioned off for $1000 and you will have to make payments on the remainder of the $15000. If you don't, then the bank can garnish your wages or you would have to file bankruptcy to get out of it. No matter what, you're screwed. You can't ever just turn a car in and think that the payments and the amount you owe will just go away. They want their money that you signed the contract for.

Answer 3

been there done that, i owed 16,000 on a car, got behind on payments, turned it in, they auctioned it off and actually it went for 8100 suprised me, the dealer where i bought it from, told it would probably only bring 2000, I still owe, they said they would make a resonable payment plan, that is a lie, I had three choices, pick the third one which still paying alot, actually only 100 bucks less the original payment was and still barely making ends meet, but learned my lesson, don't buy something you can't afford, you will end up paying for it anyway and I got nothing but a crappy car, but runs and is payed for, dont buy new...bad idea..unless you can pay upfront, because the interest that accumulates is c**p.  So answer to your question is, why not, do it, I had no other options, you only live once, life will go on.

Answer 4

First off, I am guessing that $13,000 is the total of all your payments.  That figure includes taxes, title, doc fees, interest and any extras (extended warranty, LoJack) that you may have bought.  No bank on this planet would loan $13,000 on a $3000 car.  that is a 400% advance and those just do not happen.  So, read your purchase agreement carefully.  Line A should be the purchase price of the car.  All the other things are added on after.

If you call the bank for a payoff on the car, you will get teh true amount.  So do that, too.  If you did buy extras, then those are all on that contract.  So read it carefully. --  Sure you should have done that BEFORE you sifgned, but that horse is out of the barn.

If you let it go back, you will get a repo on your credit.  The car will be sold at auction, and you will still be responsible for the loan.  Lets say your payoff is $8000, and it brings $2000.  You still owe $6000 to the bank -- and they will collect.  

You will also have to pay repo fees, auction fees, and any other fees they can find.

Your credit will be shot to h**l for a minimum of 7 yrs.  that means you will have a hard time buying ANY car for a while.  And when you do, you will pay the maximum interest rate.  You will not get favorable interest rates on anything.  Add to that that the military is not very happy when their personnel stiff the banks and go to collections.  Ask you CO what happens when they find out.

Your best bet is to suck it up, tightent he belt, and take this as a life lesson.  Treat the car like a million dollar prize and keep it until the wheels fall off.  Next time, read everything before you sign

Answer 5

Satan is 100% on this one.

welcome back.