voluntary repo, help!

What is the name of your state? Minnesota I recently purchased a new car (2 months ago), became pregnant and went to part time work. I will soon be put on bed rest. Now I have a brand new car sitting in my garage with over $600.00 dollars of car expences per month. I don't love the car, don't need the car, and now can't afford the car. I understand if I let them repo the car, they will sell it at auction and I will be responsible for the difference. My question is, do they work with you on the amount of payment you make, what legal action can they take for payment. Any other advise is appreciated before I make this move.

[HomeGuru]

Originally posted by Sharon14
What is the name of your state? Minnesota I recently purchased a new car (2 months ago), became pregnant and went to part time work. I will soon be put on bed rest. Now I have a brand new car sitting in my garage with over $600.00 dollars of car expences per month. I don't love the car, don't need the car, and now can't afford the car. I understand if I let them repo the car, they will sell it at auction and I will be responsible for the difference. My question is, do they work with you on the amount of payment you make, what legal action can they take for payment. Any other advise is appreciated before I make this move.

**A: sell it.

[Ladynred]

Yeah.. really.. sell it now, before a repo has to even happen. Send all the money you get for it to the lender. That likely won't pay all of what you owe, depreciation is horrendous, but it will bring down what you owe significantly. Call the lender and find out what the pay-off would be.

If its repo'd and sold, all you'll get is a nasty letter one day saying you owe thousands of $$$ and its due NOW or they'll sue you. A judgement on top of a repo will totally screw your credit for years (among other things that can happen).

Selling it and getting as much for it as you can is your best bet. You'd have better luck working out payments on a much smaller amount owed once you pay them from the sale.

[JETX]

I agree. Even if you sell it yourself, depending on condition you will get most (if not all) that you owe on it. If you let it go to auction, you will be EXTREMELY lucky to get 50% of its real value.... and will owe on the remainder.

[racer72]

And I would also like to add that if you sell the vehicle yourself, you will also have to pay off your loan before the title can be transferred to the new owner. If you can't afford to make the payment you probably can't afford to sell it yourself either. Only a fool would buy a car without having the title transferred soon after the purchase.

[JETX]

Racer, you are making assumptions when there is nothing to support them.

Though you are correct in that the vehicle will need to be paid off to transfer the title, there is nothing in this thread to show that she is upside-down in her note.

[Jeter]

I think Racer has a good point. Who would buy a car and keep title under the previous owner's name? Selling the car is the best option but you will need to get the money from another source to pay the remainder of your loan- which will probably be at least a few thousand. That way the car can be sold, note can be paid and title can be transferred in a timely manner.

[JETX]

"Selling the car is the best option but you will need to get the money from another source to pay the remainder of your loan- which will probably be at least a few thousand."
*** How can you say that?? You (nor any of us) have any idea what kind of car this is, in what condition, how much she owes, or how much it is worth!! You are simply making things up to fit what you perceive to be the case..... and you have no basis for the perception.

Wake up folks. You have no idea what you are talking about.

Racer is so correct, I've only had the car for 3 months, Im completely upside down on the loan, If I sell I'll have to pay the remainder to get the title. Would bankrupsy be a better out? (Im not proud of considering this) Rock and a hard place. Its in perfect condition (brand new) 2003 Alero GLS all the bells and whistles. I cant afford to pay the difference if I sell. (If I could Id just keep paying on it) Dealer price 24,000 I paid 19,000, blue book 16,000.

[Jeter]

*** How can you say that?? You (nor any of us) have any idea what kind of car this is, in what condition, how much she owes, or how much it is worth!! You are simply making things up to fit what you perceive to be the case..... and you have no basis for the perception.

Wake up folks. You have no idea what you are talking about.

*A- No basis for the perception? She said the car is NEW. Her expenses for the car are $600 per month. What's the average length of a car loan- 5 years? That makes it close to, if not a $30,000 car at an interest rate of between 6% and 19%. The condition of the car is irrelevant unles the car is in horrible condition, in which case she would need to pay even MORE money after she sells a new car in bad condition.

There is plenty of basis for this type of reasonable speculation. Maybe you have never been in contract with a car in the real world, but simple book knowledge isn't going to suffice in this case, my friend.

[Jeter]

Ok, $24,000 sticker, paid $19,000. Guess we were off our rockers, Racer.

[JETX]

Okay, you paid $19k. Your post doesn't say what the payoff is, but according to Kelly Blue Book (in 55006 zip and assuming 6000 miles), the private party price is $14970 for a STANDARD equipped vehicle.
[url]http://www.kbb.com/kb/ki.dll/kw.kc.urr?kbb.MN;977020;MN059&55006;sed;p&752;Oldsmobile;2003%20Alero&1;OL;E5[/url]

So, yes, you will very likely have to find some way to come up with some money to make the total payoff. But anyway you look at it, you will be a LOT better off selling the car yourself than to have the bank auction it off for $10K or $12k and you owing the difference.

Thanks all for your advice!! Anyone wanna buy a car?? Anyone have an extra 4 grand laying around? Thanks again

Future advice

Don't buy brand new cars. Wait until they're at least a few months old...