My car was repossessed – what to do?
My car was repossessed January 3, 2009.
I received a letter from Wachovia stating their intent to sell my vehicle. I currently owe $17,000 to them. I was considering letting the car go to auction but I know that even if I let the car go I will still owe whatever they don’t get at auction. My question for you is if I let my car go to auction, is there a way that I would be able to negotiate what is remaining? Also, what happens if I don’t pay what is remaining? The car is worth approximately $8,000, by KBB standards. I am 2 1/2 months late on the payments but I’ve been late before on previous payments. The interest rate on the car is 15% and they have repeatedly denied refinance requests even after explaining extreme financial hardship to them (I’m a full time student and have been all year thus the debacle).
My credit isn’t great but I don’t have other debts. A few late payments throughout the years but the most damage that has been done has been done by the car & missing payments.
I’m at my wit’s end here, trying to figure out what to do. I may be able to get a used car from a friend and that is a blessing but I’m not sure what to do. Do you have any recommendations or suggestions on what would be best for the situation?
I really appreciate your help
let it go get the money an try to pay off your debts
Let it go and get an inexpensive used car for cash. It will be a blemish on your credit record but will disappear with time.
get the used car. pay your balance after the auction or just ignore the balance. throw the letters that will come from the collection agencies in the garbage and live with the bad credit.
WHy on earth would you finance a car you knew you couldn’t afford to pay for? Should have bought a cheap used car. You’re credit will be screwed (good luck buying a house now). and you still owe the balance of the loan after the auction. The finance company can get judgment against you and have your wages garnished in the future.
No they will sell the car for whatever they can get. Then apply to your balance. And you owe the difference plus repo and auction fees.There is no negotiations on the balance of the loan you borrowed that much and promised to pay that back and didn’t.
If you don’t pay the loan off after the car is sold they will sue you and get a judgment against you.Then they will garnish your wages and attach any or all asset’s you have. They will get there money one way or another. And your credit is now toast for 7 years because of the repo……….md
Let it go.
Here’s the good news. If you will start living within your means, you will eventually begin to grow rich. You’ll realize that this $17,000 car is not very important, and $17,000 is not much money, and this is not much of a problem. This is just a dose of reality, which eventually you will be thankful for.
Your problem of course is that you are a full time student, but you still happily plunged yourself deep in debt for something you didn’t need. Don’t do that. Don’t do it ever, for anything. pay cash. If you don’t borrow anything, you cannot be hurt by damage to your credit score.
If you can’t pay cash for something, don’t buy it. It takes a while, but you will see enormous benefits on this plan.
that’s ridiculous that you owe 17000 dollars on a car that is worth only 8000… that’s call living above your means and that’s how this whole economic crisis started, with people like you… you’re not getting any help from me
One thing not previously mentioned is for you to contact the company and see if you can extend your payment period and pay the money you promised to pay. Get your payments up to date. It will be cheaper than letting it be sold at auction (where you have to make up the difference in the selling price and what is owed on the vehicle) plus the repo fee and auction fee, etc. If the vehicle sells for just $2,000 you will still owe $15,000 on something you don’t have. The auction isn’t concerned about getting top dollar for the vehicle because you have to make up the difference – they just want to sell the thing.
I would borrow money from a family member to catch up on the payments, pay what you owe on the vehicle, keep up with the payments. Get another job if you don’t have one already and pay cash as you go or “don’t go.”