Close
Login to Your Account
No Account?
+ Reply To This
Page 1 of 2 12 LastLast
Results 1 to 10 of 11
  1. #1
    Registered User New Member
    Posts
    5

    Voluntary Repo

    I lost two of my part time jobs back in 11/2012 and I have been barely getting by with what income I am receiving through SSI.
    I also have a car that I bought about a year and a half ago that I can no longer keep paying on. During that time I was working two PT jobs, I was more than able to pay for this car and still have plenty of funds at the end of every month.

    I managed to keep up with the $271 payments up till now. I really need to get rid of this car. I have tried selling it but no one wants to buy this car even when it's priced $2k under KBB value. I do have another vehicle that is paid for that I plan to keep.



    There is nothing wrong with the car, it runs and drive just fine but I just can't get a legitimate buyer for it. My only other option it to give it back to the bank (Capitol One). I know this will wreck my credit (which is not bad) but I just don't have any funds left at the end of the month for groceries, food, bills, and other necessities. What other options do I have? Will the bank make me pay the difference when they sell the car from what I owe on it? How will they make me pay when I'm on a very limited income? Will getting another car that I can afford payments on then returning this car to the bank help ease the damage on my credit from a voluntary repo?

  2. Voluntary Repo
  3. #2
    Almost anything is going to be better than repossession. You would be passing the loss on to the bank and in that case you can wave goodbye to your credit and they will probably still come after you for the loss they take. Honestly I would keep trying to find a buyer - have you tried to take it to a dealer and see if they could swing something to get you into a more affordable option? You aren't going to get as much for it but they may be able to work around some of the financing problems.

    How much is the other vehicle worth? Would it be possible to sell that and pay most of this one off?

    If it does go into repo it may take years to fix your credit and if you plan on buying a house in the future it could cost you thousands in additional interest since you will have to settle for higher mortgage rates etc.

    And yes the bank will still make you pay the difference. They will find a way to make you pay and if you don't the debt will be sold off to other companies who will continue to try to make you pay by essentially holding your credit score hostage.

  4. #3
    Sorry to here this! I have to agree with Credit Dave, your last course of action should be repossession. We were in a similar situation right after we got married and had a car with a payment that was costing us wayy too much (I wasn't the one who bought it......). We were able to work with the dealer and they got us into a different car that was more affordable (albiet 2 years older) so I would not count that option out, it's worth a shot if you haven't tried it already.
    Need a Card to Build/Rebuild Your Credit With? Read This >> Best Credit Cards For Building Your Credit

  5. #4
    Registered User New Member
    Posts
    5

    How much will the score be reduced to?

    How much will the score be reduced to if I had done a voluntary repo? Will it be 50 points, 100 or more?

    I am trying to find a buyer for this car but it's been in many ads for several months that don't charge anything to place it in.

    How will the bank force me to pay if I don't have the funds to pay it? I already own my home, property is under my dads name.

    I'm really running out of time to make a decision on how to handle this situation. I can maybe go another month or two before I have to let this car go. My other vehicle may not cover the total cost that I owe on the car. I will be talking to the bank tomorrow about removing the extended warranty that is on the car and possibly refinancing the car, if they can't do that then I have no other choice.

    I could sell it for way less than the value, but I still have to come up with the difference of the sale price and the pay off which I cannot do either at this time. The payoff is $10,000, KBB $11,500, trying to get around $9,000. The dealerships are only giving me about $5000-$6000 for it.
    I stopped driving the car to keep the miles as low as possible and drive my other vehicle.

    Thanks

    Jon

  6. #5
    Registered User New Member
    Posts
    5

    Buying another vehicle.

    Quote Originally Posted by Frugal Mom View Post
    Sorry to here this! I have to agree with Credit Dave, your last course of action should be repossession. We were in a similar situation right after we got married and had a car with a payment that was costing us wayy too much (I wasn't the one who bought it......). We were able to work with the dealer and they got us into a different car that was more affordable (albiet 2 years older) so I would not count that option out, it's worth a shot if you haven't tried it already.
    This is one option I have been exploring for the past three weeks. I did find a few I liked, some we're a few years older.
    The stealerships wanted more for the vehicles than their value and gave me way less for my car. So I would still be in the same position I am in right now but in a different vehicle. They did not help whatsoever.

  7. #6
    Registered User New Member
    Posts
    5
    Well I tried to trade in the car again yesterday and they low balled the value of the car. I'm just going to find an older vehicle that I can afford to finance then give back the car to the bank as I have no other option I haven't tried yet.
    I know my credit will take a hit, but financing another vehicle and paying my credit cards on time as I am doing now should minimize the damage.

  8. #7
    Quote Originally Posted by JonP View Post
    Well I tried to trade in the car again yesterday and they low balled the value of the car.
    Sorry to hear that, was it just not doable or was it doable but you don't want to take the hit now if you dont mind me asking? Personally I think you should do everything you can to avoid the repo... it's one thing to come to terms with it now but you may be kicking yourself a few years down the road if you are trying to buy a house or take out a large loan you will probably run into issues.

    Unfortunately from what I've seen paying your credit cards on time will not deflect the majority of the damage done by an account in collections. If you do decide to go that route I would expect a 100+ point drop.

  9. #8
    Registered User New Member
    Posts
    5
    Quote Originally Posted by CreditDave
    If you do decide to go that route I would expect a 100+ point drop.
    Even after making good on the other car I finance? This is not something I look forward to doing but I really have very little choice unless another job opportunity comes up but highly unlikely where I'm at.

  10. #9
    Yes, the problem is you are passing the loss on to the bank, and they will then come after you for it. Even if you do pay what is owed it will still damage your credit and is a red flag to other creditors aka instant denial for credit cards etc. The good news is that it will eventually fall off your report, but it takes 7 years. So yeah, crappy situation but I would do everything humanly possible to prevent the repo because it may come back to bite you. Good luck and let us know what happens.

  11. #10
    Let us know how this works out but I agree with CreditDave 100%. The main problem is that it is VERY hard to repair your credit once it has negative marks. The reason it is so difficult is that it takes a long time to recover (like YEARS) and there is not much you can do to speed the process up with those negative marks holding you back you will just need to establish trust with lenders again.

    So it may be blunt but do EVERYTHING YOU POSSIBLY CAN to avoid going down that road.
    Need a Card to Build/Rebuild Your Credit With? Read This >> Best Credit Cards For Building Your Credit

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •