Help, I cant pay this auto loan anymore!!

[urbanlioness]

What is the name of your state?Ohio. I need advice on what to do about my car loan, i have many other debts& am moving out of this state in about two months and just cant afford it anymore! The problem is that the resell value of this car is only 4 thousand dollars, but after paying on it for three years i still owe 8thousand. I want to voluntarily give it back to the bank/repo, but i wonder just how bad this could really look for my credit. My credits not good anyway and i even want to buy a home within the next 3 years. Is all of this impossible?? Should i be worried that it will hurt my credit too much even though i havent had any other major negatives in the last three years to my Cred.Reprt? Please, any comments are welcome!!

 

[jbodden6977]

Have you asked these questions elsewhere first?

I am in California.
Regardless, when you buy something you agree to pay the price settled on.
I know people love new cars, but I stick to really nice used and then spend money on the repairs and renovation they need to be good solid bargains.
Most new cars are computerized tow truck bait.
Regardless, have you gone to the logical people you should be asking these questions of, the people you owe the money to?
I am not saying that you should not get a second opinion - a lot of unnecessary 'surgery' can be avoided thereby! - but get THEIR take on your situation after you lay it out for them.
Maybe they can work with you, after all the money is owed to them and they do have the right to cut a deal as they are the 'holder of privilege' in the debt.
You might get a new payment schedule, refinance the balance due or find other ways. A bank certainly has no interest in not getting paid or ruining your credit rating and they are obviously in the best position to help you out of your difficulty.
And stick to good used cars - after all they will eventually become 'classics' and begin accumulating value instead of devaluing !

 

[Happy Trails]

What is the name of your state?Ohio. I need advice on what to do about my car loan, i have many other debts& am moving out of this state in about two months and just cant afford it anymore! The problem is that the resell value of this car is only 4 thousand dollars, but after paying on it for three years i still owe 8thousand. I want to voluntarily give it back to the bank/repo, but i wonder just how bad this could really look for my credit. My credits not good anyway and i even want to buy a home within the next 3 years. Is all of this impossible?? Should i be worried that it will hurt my credit too much even though i havent had any other major negatives in the last three years to my Cred.Reprt? Please, any comments are welcome!!

**Giving them the car will not satisfy this debt. If they sold the car and only got $2000.00 you would still be on the hook for $6,000.00. As far as how will this look on your credit, it will look like you were unsuccessful at paying off this loan.

 

[I AM ALWAYS LIABLE]

What is the name of your state?Ohio. I need advice on what to do about my car loan, i have many other debts& am moving out of this state in about two months and just cant afford it anymore! The problem is that the resell value of this car is only 4 thousand dollars, but after paying on it for three years i still owe 8thousand. I want to voluntarily give it back to the bank/repo, but i wonder just how bad this could really look for my credit. My credits not good anyway and i even want to buy a home within the next 3 years. Is all of this impossible?? Should i be worried that it will hurt my credit too much even though i havent had any other major negatives in the last three years to my Cred.Reprt? Please, any comments are welcome!!

My response:

Oh, I just love this one. You can't pay your debts, you want to "return" your car because you can't afford that payment, either. Your credit sucks, and you think you'll be able to buy a house in three years? Yeah, right. Keep wet dreaming.

IAAL