What will happend if I call the bank and tell them that I can't afford to pay for my car?

Question

I have 7,000 left to pay. Can they reduce my interest rate so I pay less|? Do I have any options?

I appreciate all your advice.

Answer 1

contact them as soon as possible.  my personal recommendation is not to call, but to go in and meet face to face.  i generally get much better results from that.

as far as not paying, your car will get repoed, you'll have to repay and difference b/w what you owe and what they can sell the car for and your credit will be shot making it difficult to get any loans for a long time.  additionally, if you have credit cards your rates will go up as they constantly monitor those things and if you are looking for a job many companies now check credit reports to check for risk factors.  it could make it harder to get a job as well.

many banks will help you, allow you to skip a payment or try to work out a longer loan for you so that your payments are smaller...

but do it now.  if you wait until you miss they will be unlikely to work with you on it.

Answer 2

Most banks are willing to work with you. But you need to contact them, fast. They might arrange for deferred payments, interest-only payments, or stretch out the loan. But it depends on the bank or loan comapny. So, you need to ask them, fast, before it turns into a repossession, which is very bad for your future credit.

Answer 3

It's a bank, so they will probably tell you too bad either pay or get repo'ed.  You may be able to refinance the loan if you have good credit and possible extend it out longer, but that would mean at 5 years you have another 2 or 3 to pay.

You need to look at all your options, but remember if they repo the car it looks really bad on your credit.

Answer 4

Hi! If you have good credit you can refinance. Another option is a deferment where they can take 2 or 3 months worth of payments and tack them onto the end of your loan. This is ONLY a temporary fix though as to catch up on a few bills or  make a behind car payment current. If you really just can't afford the payments anymore and you have exhausted all of your options you can voluntary reposses. They will come get the car and auction it off. So if they sell it for say 5,000 you will be responsible for the remaining balance even though you're not driving the car...and the balance will remain on your credit. Good luck!  

Answer 5

No, they aren't going to reduce your interest rate. You would have to refinance the loan to get a lower rate. They will tell you where to return it to them, and you will still owe them $7,000. They will sell the vehicle for $3,000 and send you a bill for $4,000. The point I'm making is, whether you have the car or not, you still owe them $7,000. You need to find a way to afford your payments to avoid paying them for a car you can't drive.

Answer 6

You should contact the bank and explain your situation and then they can tell you your options if any. If you know somebody interested in your car you can change it over to their name and they are responsible for the remaining balance if you wanna get rid of your car. Of course you wont make any money off of it that way. But if you dont wanna do that and you fail to make your payments and it's repoed they knock off the bluebook value and you pay the difference. So if its bb value is $3500 you owe the other $3500 since you owe 7000. My husbands uncle let the bank take his truck thinking he wouldnt have to pay anymore boy was he wrong!  

Answer 7

idk but u can go to the link at the bottom and buy a car for like $300- $500

www.seizecars.com/?hop=1461d