backing out of auto loan

[zrop]

What is the name of your state? CA

Last year I bought a car from a dealership and I still owe almost $11k on it. Resale value is 13k, private party 9k, and trade in 6k. I'm wondering what would happen if I told the bank I was no longer interested in the car, seeing as how they could make money on it selling it retail, would they proceed to do this? Would they just give me as little as they could get away with and make me responsible to pay the rest of the loan? How would this affect my credit?

 

[tabathadolley]

What is the name of your state? CA

Last year I bought a car from a dealership and I still owe almost $11k on it. Resale value is 13k, private party 9k, and trade in 6k. I'm wondering what would happen if I told the bank I was no longer interested in the car, seeing as how they could make money on it selling it retail, would they proceed to do this? Would they just give me as little as they could get away with and make me responsible to pay the rest of the loan? How would this affect my credit?

First of all, they would repo the car if you stopped paying for it, and that would negatively affect your credit. Your best situation would be to sell the car for 13,000 and pocket 2K. Otherwise the bank will put your vehicle(after they repo it because you aren't interested in it anymore) up for auction and likely get less than you owe. You will then have to pay for that difference.

 

[zrop]

i can't get that much for it

13,000 is resale, 8500 is private party value, nobody is going to want to pay dealer price from an individual.

 

[I AM ALWAYS LIABLE]

What is the name of your state? CA

Last year I bought a car from a dealership and I still owe almost $11k on it. Resale value is 13k, private party 9k, and trade in 6k. I'm wondering what would happen if I told the bank I was no longer interested in the car, seeing as how they could make money on it selling it retail, would they proceed to do this? Would they just give me as little as they could get away with and make me responsible to pay the rest of the loan? How would this affect my credit?

My response:

You deadbeats all think alike. It's amazing! You all think that banks are in the used car business, that they have salesmen in the bank, and that their parking lots are all filled with used cars just waiting to be sold. Guess again, pal. They're not. Those are customer's cars.

Banks don't sell cars. They wholesale them to auction houses on the same day they're reposessed. There, they're sold to either private parties or to other used car dealerships for a fraction of their retail value - - usually 10 to 20 cents on the dollar. They're purchased at or below wholesale market prices so that the new owner can resell and make a profit. Where do you think used car lots get all of their used cars? From trade-ins? No, pal. Their vehicles come from deadbeats like you.

IAAL

 

[Shay-Pari'e]

What is the name of your state? CA

Last year I bought a car from a dealership and I still owe almost $11k on it. Resale value is 13k, private party 9k, and trade in 6k. I'm wondering what would happen if I told the bank I was no longer interested in the car, seeing as how they could make money on it selling it retail, would they proceed to do this? Would they just give me as little as they could get away with and make me responsible to pay the rest of the loan? How would this affect my credit?

The bank carries "YOUR" loan and is not in the business of selling your car because you no longer want it.

Tou need to sell your car if you don't want it, it is not the banks job.

You miss your payments, and you are looking at "REPO", and most likely never getting a loan again.

Thanks for the laugh.


OH! And what is the difference between "Resale", and "Private Property sale".

Just curious.

 

[ndnicks]

They would be making less money obviously. As you said it yourself, IF a bank were interested in, were in the business of, and wanted to sell a car that you were irresponsible enough to allow them to repo, they'd only make 8.5 k of the 11k still owed. That's not a profit.

Since thats not how it works, they'd make a fraction of what is owed auctioning it. What you need to do is sell it yourself, pay off with the money you earn from that, then make the rest of the payments necessary until the loan is repaid unless you want your credit to take a hit.

 

[tabathadolley]

Since thats not how it works, they'd make a fraction of what is owed auctioning it. What you need to do is sell it yourself, pay off with the money you earn from that, then make the rest of the payments necessary until the loan is repaid unless you want your credit to take a hit.

It doesn't work that way - the person you sell it to is going to want that title, and he/she can't get the title until they pay the car off completely to the bank. They'll need to sell the car for what they owe or more, and if they sell it for less they'll have to pay the rest off then - not continue to make payments.