What do we do with this...husband lost job, can't afford vehicle but can't get rid of it, either?

Question

We purchased a brand new Isuzu Ascender SUV in January 2006. Unfortunately, this past January, my husband lost his job. We've managed to keep up the on the note but, my husband doesn't earn enough at his new job for us to really afford the vehicle anymore.

We owe about $24,000 on the note; trade in value is all of $12,000 thanks to the economy. Sure, we could take that amount and roll it into a new loan but we'd still wind up with a $500+ payment, so that doesn't help.

We can't find anybody who wants to take over the note (again, because of the gas prices) and I can't say I blame them. We've looked at getting it refinanced but can't because--again--it's the economy thing. UGH!

So we're obviously stuck with the vehicle and are doing everything we can to keep it from being repoed. Does anyone have any other ideas (legal ones!) on how to unload ourselves of this burden without having our credit rating go in the toilet?

Answer 1

Try talking with the company, tell them the situation and that you are thinking about just letting them repo the thing unless they are willing to help you out a bit.  Its only worth $12,000 so they will be taking a loss on what you owe, so hopefully they will work out more favorable terms with you, or allow you to trade it in on something you could afford.

Answer 2

there are several people in our area that are in the same shape,and it is the economy's fault,not yours,but for now like you said not many people are willing to take over the payments on one like that,if if comes right down to it and it does come to a re-po it wont hurt you for very long,but id try selling it through a local auto trader or run an add for someone to take over payments on it,surely someone may see the add and take notice to it,it wont totally ruin your credit though,but like you said its not going to help it either,i wish you luck selling ti most ads you run are free in those papers,so id try everything possible and if it comes down to it,let them have it,its not going to be the end of the world for you,you can still get a new car when things straiten back up again,good luck with this,and don't think your the only ones going through this,your not.

Answer 3

You can trade it for a new vehicle that has a lot of cash rebates. The Ford F-150 or Expedition now currently has $10,000 - $15,000 off MSRP in some areas. That will wipe out the negative equity you have in the Ascender.

Try working a deal with your bank. Banks aren't really in the business to own cars so they don't want to repo yours unless they really have to. See if your bank can refinance, change the payment schedule etc., until your income can get back into full swing.

Answer 4

With $12,000. in negative equity (approx.= to $300.pr.mo.) there isn't a vehicle out there that will allow for that much overallowance and keep your payment affordable. You're correct at $500.00 + per month.

Your best and probably only solution would be to work out an arrangement with the bank holding the car loan. I'm sure they would bend over backward to work out something because they'd be looking at a $12,000. loss or more.

I know that ultimately that could get a judgment against you for it, but if they put you into bankruptcy as a result of it, everyone loses.

Good luck.