Thursday, October 6, 2011

Car loan in debt collection. How can I get out or rid of car?

I have a 05 nissan payments are 500 a month. I am currently behing 6 months and the car is in collections. I owe 20,000 and I recieve a letter stating that they'll settle the account for 16500. The car is maybe worth 10000. I need to fix my situation and either some how get rid of car or turn in or who know what I can do to fix my situation.
Car loan in debt collection. How can I get out or rid of car?
Try and sell it but unless you get the amount you owe your screwed.
Car loan in debt collection. How can I get out or rid of car?
get a beat up neon like mine and have a bosnian or russian person fix it up. very afforbale. everybody can have one! : ) lol
first of all a 2 yrs old is worth a lot more than $10K

if you already paid $500/mos and almost 2 yrs, which means you put close to $10K and you own another $20K, my guess it is a Maxima or a loaded truck (u don't say)

check the actual value below: (this is the Kelly blue book)

sell the car to a private party and pay off your debt. (you credit score went already bad), or re-negotiate you loan with the lender for another 3 to 4 yrs. that will lower your monthly payments.
is it insured? wrap it around a tree.
Here is what I recommend. Get a buyer for the car at the market price. Get him to give you small deposit. Call the lendor and tell them you have a buyer for the car for say 10G and your balance is 20G. Then ask them to finance the balance for you over x months, what ever you can afford. Bottom line is if they repo it and sell it at auction they will loose more in repo, transporting and auction fees then having you sell it to a retail buyer first. Have the buyer make the check right out to the lendor. I would get on the phone and discuss this plan with a loan supervisor. If he has half a brain he will see having you retail it and refinance the balance for you with payments you can afford. It makes the most sence all around. They other repo way you loose and so do they. Many people with 5 year car loans are in the same situation. The loan payoff is always more then the car is worth because it's value is dropping faster then your paying down the loan. I recomend 3 year loans on most american cars and 4 years on most foreign. Unless you have a very desirable rare car that goes up in value or looses little value you never come out ahead in the first 3-4 years in a 5 year loan. The other rule of thumb is your car payment should not exceed 1/2 your weekly gross pay unless you live in a U-Haul cardboard box or have free housing some how.
You dont have to worry about getting rid of the car, cuz if you own money on it, the bank will send a repo man out to take, youll still owe the balance due on he encumberance. So, not to worry, one nite while youre asleep or one day while youre at work, youll come out and the car will be gone. Besides, you cant sell the car outright anyway cuz the bank holds the title...and without the title in your can not sell it. Best thing is to work with the bank and agree to make double pymnts to catch up...but, if youre more than 1 or 2 behind, watch for the repo guy.

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