Auto Loan

[mzbmer]

What is the name of your state? MD

Hello All, I have been making on time payments on my 2001 truck since I got it in 2001. However since I have been called to active duty..It has become quite difficult to keep these payments up on this vehicle. (I have not been late yet, nor have I missed a payment). my question is can I give this vehicle back to the finance company because I cant afford it anymore?, and what kind of penalties if any will I encure?, and since im on active duty for the next two years I wont be needing it...the payments are really hurting my pocket

P.S I havent spoken with the Finance Company yet

Any help would be great
thankx

 

[JETX]

"However since I have been called to active duty..It has become quite difficult to keep these payments up on this vehicle. (I have not been late yet, nor have I missed a payment)."
*** One thing that you might consider is called the SSCRA (Sailors and Soldiers Civil Relief Act). This Act allows you to lower your interest rate to 6% where qualified. If this is a lower interest then you pay now, this could lower your monthly obligation to a level that you might be able to maintain.
For more information, go to:
http://www.defenselink.mil/specials/Relief_Act_Revision/

"my question is can I give this vehicle back to the finance company because I cant afford it anymore?"
*** Yes. This is called a voluntary repossession.

"and what kind of penalties if any will I encure?"
*** The lender will sell the vehicle at auction and any monies they get (less costs of auction, etc.) will be credited against your outstanding balance. If there is a balance left over (very likely), then you will be liable for that amount (called a deficiancy).

"and since im on active duty for the next two years I wont be needing it...the payments are really hurting my pocket"
*** Rather than letting it go back, you will be in a MUCH better position to simply sell the vehicle yourself..... even just for payments.

 

[mzbmer]

Yes Jex, I did get the 6% lower interest however the payments are still put a huge dent in my pocket, I will look into trying to sell it my self..on the base. Thankx