i am moving to hawaii, but i can’t sell my car. I aslo can’t afford to send it over to hawaii. It’s about 1 year old and I am still paying for it. The dealership doesn’t want it. I am thinking about giving it back to the bank. what do you think? will my credit history be messed up after the reposesion?
Sell House Quick
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That will ding your credit history quite a bit. why can’t you sell it? If it’s that new, it must be worth something. Or are you just saying you’d come out ahead financially better on the repo?
Repo and surrendering your car are the same thing. So if you don’t mind having your credit messed up for 7yrs then by all means go right ahead! Otherwise I would try other things, give the car to a friend or family member and have them pay it..Put it on Craig’s list, but try not to have your credit messed up!
It will destroy your credit.
AND, you will still owe the bank a ton of money
AND, they will sue you for it.
The minute you drove the car off the lot it lost around 25% of its value, but your loan stayed the same.
If you have only been paying a year, you have not even started to touch the principal yet, you still owe practically what you paid for it.
What you should do is either find a buyer who will give you a down payment and pay payments to you, while you continue to pay the bank. Or. park it in storage, insure it for storage only, and keep paying. Or, trash your credit for 7-10 years to come.
Good luck
Here is how that will work. You will give your car to the bank (which is no different than a repo), and they will auction it for a fraction of its worth. Then they will obtain a judgment against you for the difference in the auction sell price and the amount you owed! Don’t do it. Good credit is more important now than ever before and a repo will haunt you for years.
Continue to try to sell it on your own. You will take a loss, but it is nothing compared to the amount you will loose from a repo. Or you can see if you can find someone to take over the payments. If you go a good deal on the car, someone may be willing to take over you payments. Most financing companies allow this as long as the assumer has decent credit. There are websites that facilitate this.
Dear, you can afford to ship it to Hawaii more than you can afford years of a bad credit history!
Try thinking ahead more than one or two months, dear. This fad of throwing keys at the bank is really out of control. Consider your credit. Your credit will be trashed for years, and you’ll still be legally responsible for some of the value of the car anyway. That means you will pay *much* more for any loan that you will take, for years. Think that shipping the car to HI for a couple thousand is expensive? Try having to take an auto loan at 18% interest. Suddenly, you could have had the present car shipped. How about having a credit card at 25%. Not being able to get a home loan. This is the way that the endless cycle of being broke starts. First it’s a repo, then it’s a payday loan, or a 20% car loan, or other legalized versions of loan sharking. Voluntarily having bad credit to evade a small, short-term expense, is utterly stupid.
If you voluntarily give your car you, it will hurt your credit. But, if you pay the difference than what the banks sells right away or settle the balance. It will not be that bad.
See when bank reposes the sell your car at an auction and you are responsible for the difference. That difference could be 1,000 or 15,000 depending on what you paid for your car and what is worth. If you settle with the bank and pay that debt, it will not be so bad after the car has been auction off.
Most of the time people don’t even try to settle and let the huge debt sit there. That is what hurts so bad. So if you are willing to pay the difference then you will not be that bad off. But it will affect it.
Good luck