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Charge OFf Car?


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It's me SakiaWarner in an all new name.. cool huh???

OK.. my fiancee and I are having some money prollems and he is going to get rid of his 2003 Saturn. The payments are just too high now that we have one less roomate.

We got a letter from GMAC demaning payment in full or they will charge off the account.

WE have talked to the car lot and they are willing to buy the car back and pay most of the account off.

But here is the question.. what if he kept the car and let it go to charge off? Will they come repo the car or will they let the collection agency.. or will they just take it as a write off... OR report the car stolen??

What would you guys advise????

Oh yeah and this new board system apparently ate my old Screen name..

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I would think that if the Dealership is willing to buy back the car at almost full balance remaining.

That it would be in your best interest to call GMAC ASAP on this, and explain what you are wanting to do on the matter.

That they will recieve the check from the dealership; and that you want to make arrangements for the remaining amount.

By all means get their cooperation before they charge off this account, damage control is the prime goal here... cause either way you will be paying. And you would rather pay off the difference now of what the dealership will cover verses what the difference should be if GMAC repos the car and sells at auction!!! Cause they are not selling for the best price, they are just unloading the car, you will be stuck with a bigger balance for sure to pay.

If you don't take the car back (which technically is a surrender / then they will be there to get the car and list on your credit report as a repo).

Might be if you pay them with the sell back to the dealership a big chunk of the money now, and then the rest later... they might only show collection and no note as to the repo. Being they did not take the car; the dealership did.

So definitly in your best interest to get this taken care of immediately; them companies don't wait long to come get the vehicals when they mean to. And if they do, you best get all your belongings out of it NOW, cause you might not have a chance to later.

Oh and another note, if they repo, you might be looking at paying higher fees for the service and possible storage...

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So if the car is surrendered, does this go down as a repo?

Or is it still a repo..

I was wondering cause I got a new truck with GMAC, and have another car with SST, who sucks big time. They call when I'm 1 day past the due date. Now I'm 50 days late and they are talking about repo. I'm ready to say come get it. I can't take the calls any more. Seems like pure harrasment to me.

I couldn't trade it in cause the intrest rate is way too high, I owe a lot more then its worth to even sell out right. (21%). The new truck is 16.7%, not much less because I put nothing down, but it is brand new, thanks to this site.

Any adivce??

I can afford to pay it, the reason its 50 days is the check bounced, I made the deposit to late.

So the last call I got from them today (I didnt answer the phone so it was a voice mail message) was, further action is proceding, what ever that means.

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It will say repossession either way, but if you turn the vehical over if will say Voluntary Surrender.

If they left you a message that other actions are being taken, you might just get your stuff out of the vehical right now. Cause someone will be on their way to pick it up very soon.

If you don't want repo showing, then you call them up to surrender.

Now, when they take the vehical back, it is going to go to an auction; and sold (the finance company won't be taking the best bid, they just sell the car for what ever).

You will be responsible to pay the difference remaining on the vehical

So if a car was bought at $20,000 only $5,000 paid down over the life of the loan. Then they sold it at auction for $10,000, they will be coming back on you to pay the remaining $5,000 including interest and such.

It is a no win situation usually in these cases. So best if you can return it as soon as possible to stop the repo from going through; cause you will be paying for this bill as well as storage on the vehical.

You both need to hold tight for some of the other members to get in here that can explain more of the technical details with you on how these things work out.

I had a vehical repossessed years ago, but we fought every inch of the way to get it back and pay the debt. So now our credit reports show repossession / redeemed.

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If you don't want repo showing, then you call them up to surrender.

This si where your lossing me. If the car is surrendered it still shows as a repo correct? If so, what the dif if they pick it up or you surrneder it?

I'm not sure if they will pick it up, I hope its just a scare tactic. I don't want it repo'd but they are harrasing the crap out of me and have been for 2 years. Even though the payment hasn't been 30 days late in over 6 months, they still call every day after the 1st day it is due. They are a real PIA!

Does being 50 days late really warrant a repo??

I know people that go 60 and 70 on a regular basis.

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Well repo verses surrendered ...

Repossession looks harsh, like they had to come get the car...

Surrender looks sad but still it shows that a person took care responsibly to take the vehicle back in.

I don't know how to explain it any better, but to me looking at the reports the latter looks better. And saves a bit more expense all the way around.

Them creditors really vary amongst each other on how aggressive they are in collecting money and vehicle... so it is really hard to say what to exactly expect from one to the next.

But that is BS that they should call you ever month for payment... I don't know what to say in this matter cause you are with an OC over dealing with a CA so they don't have regulations in this area.

You can file a complaint with their company first to object to this treatment.

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Couldn't trade it in cause the intrest rate is way too high, I owe a lot more then its worth to even sell out right. (21%). The new truck is 16.7%, not much less because I put nothing down, but it is brand new, thanks to this site.

Any adivce??

Hey, how is your credit repair at this stage? What are your credit scores like, can you refinance you loans cause that is quite steep of an amount to be paying!

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Credit scores are:

TU 566

EQ 650

EX 550

Can not refi. cause the loan is so far out of equity, no one will buy the note with out a large Down payment.

My repair has been doing real good. I have 1 public record left with EX, and 3 charge offs on all 3.

11 Pos trade lines some are old some are new.

I was able to buy a new Chevy truck for 30k with no money down and keep the car. The new finance company has me at a high rate too, but no where near as bad as the car note. I couldn't trade the car in cause of being so far out of equity I would have needed atleast 5k down. I didn't have the money so I went with the new truck for 16% no money down opposed to 1.9% with 4k down, which they couldn't get me bought at any way. The bank wanted to see money down.

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TU 566

EQ 650

EX 550

Can not refi. cause the loan is so far out of equity, no one will buy the note with out a large Down payment.

My repair has been doing real good. I have 1 public record left with EX, and 3 charge offs on all 3.

Need to work on improving your scores for sure asap (to get some relieve for you here).

How recent is the charge offs?

Are they out of SOL for you to dispute?

11 Pos trade lines some are old some are new.

I was able to buy a new Chevy truck for 30k with no money down and keep the car. The new finance company has me at a high rate too, but no where near as bad as the car note. I couldn't trade the car in cause of being so far out of equity I would have needed atleast 5k down. I didn't have the money so I went with the new truck for 16% no money down opposed to 1.9% with 4k down, which they couldn't get me bought at any way. The bank wanted to see money down.

Are you financially stable now? Can you make it where you are one payment ahead on your two vehicle payments? Put a buffer in there to give you room for when things like this happens.

What are the types of possitive accounts that you now have open? (like revolving; installment..how many of each) and what your utilizaiton is on revolving accounts... might be able to pay these down to boost the credit scores even higher.

Know some of these things are not fast fixes, but as you go you can keep calling in periodically to ask for account reviews to lower interest rates and such. Know them car loans are fixed, but I think if you get them scores up, you might later be in a possition to refinance (if you can save some money on the side to accomplish this part) like the one said $5,000 down. But unfortunately time is going to play a big factor here (and your ability to bump the remaining negative items).

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How recent is the charge offs?

2 years old.

Are you financially stable now? Can you make it where you are one payment ahead on your two vehicle payments? Put a buffer in there to give you room for when things like this happens.

Getting there, but my be a few weeks before I can do that.

What are the types of possitive accounts that you now have open? (like revolving; installment..how many of each) and what your utilizaiton is on revolving accounts... might be able to pay these down to boost the credit scores even higher.

I got all 4 HH cards, 1 I've had for 5 months and the others 2 months.

1 Target, 1 Lowes card. Most are showing no balance yet. 2 Installment loans from other cars I've had and were paid perfect on, then there are 3 or 4 small installment loans that have been paid off for a frw years now.

Know some of these things are not fast fixes, but as you go you can keep calling in periodically to ask for account reviews to lower interest rates and such. Know them car loans are fixed, but I think if you get them scores up, you might later be in a possition to refinance (if you can save some money on the side to accomplish this part) like the one said $5,000 down. But unfortunately time is going to play a big factor here (and your ability to bump the remaining negative items).

I have asked for account reviews, and they said no go to a lower interest rate. Which doesn't make sense, if you want someone to pay why hang em out to dry?

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Ok, 2 years old on the Charge Offs is good, anything sooner than that is really affecting them scores.

Ok, so most of your open credit is young; you really need to get yourself some history established (right now the only way to do that is getting authorized user accounts added). The rest is going to really take some time.

Had you thought that you have too much of a car; can you do a trade in for something a little less expensive to get you buy until you can get some credit aged onto your credit report?

I know that is a terrible thing to say, but it really looks to be the case for you, that it will be some time yet (even if you get the derogitory info deleted) your scores will still be low for a bit of time, due to lack of history. And you can always go back later to get that vehicel you want and at a better rate by then.

Just a thought; don't loose the war, but retreat for a bit of time to give you self better resources until your credit can become stronger.

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Do as KB advised. Check all angles to see if you can get a personal loan or anything to take the load off. If not, surrender the car. You will be better off in the long run. In the old days, they called them a "voluntary repossession", whereas they now use "surrender".

Think about it this way. As KB said, if they come get it, you will be liable for the difference plus any and all legal charges, AND, the negative TL along with a judgment on your report for up to 10 years, if it goes to court. OR, surrender and arrange to pay difference to suit both parties. Yes, you will still have a negative TL, but, after you have paid the balance owing, and say step up and buy another vehicle, the new creditor is going to notice that you paid the one and paid the balance of the other. This demonstrates that you realized there was a problem and stepped up to the plate and did the right thing. You would be surprised how many creditors look up to people who take care of business instead of running away. I know this for sure as when we bought our car, we told the dealership to run a CR first and listen to what we said, then decide whether to sell us a car. We had not wanted to buy a car as we were positive no one would sell us one due to the negative info, but, found that we needed to buy a new car. The Credit Manager appreciated our honesty and approach so much that he played all angles he could find and got us financed. Fortunately, the dealership has many institutions they use. All we did was explain what caused the negative items and proved it. So think about all of what has been advised and I think you will agree. Good Luck!

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Thanks for the advice. If they say they are gonna repo for 50 days late, I will surrender the car. I already bought the new truck so if they want to be as*es, they can have it back. I will work to pay the dif. and hopefully get by this. If they don't say repo, I am going to keep the car and pay on it as usual.

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Best of wishes, and try by all means to get extra payments on both of them so you have some breathing room for sure.

I can't wait to get this accomplished on my house payments here, since I just started my mortgage loan.

Never know when an emergency might pop up and hurt you. I know, my poor DH is always getting hurt at work and with poor health! And we live from one medical expense to the next here, always one step ahead of collections on some and that is just a hard way to live.

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Well we have talked to several car lots and everyone tells us we are screwed. The minute we drove it off the lot we lost about 9000.

So all 5 car lots we have talked to advised us to get a new car loan while his credit scores are still high.. then let surrender the car to them.

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It is usually true that you lose the most money in the first year. So what you can look at is this. Go to the Blue Book on the net. Follow the directions and it will give you the low book price. Mind you, that is based on average vehicles for that year in your area. Yours could be up to so many dollars more or even less. Now, you also need to know the actual payoff of the vehicle. Now what you are looking at is the difference you could be liable for.

Another thing to do is follow those dealers advice except for one thing. Trade both vehicles for one. Yes, they would have to add the differences to the new car which basically will put you way beyond upside down in it along with the first year loss. For example, the payoff on both cars is $15,000.00. You are only going to get $8000.00 for them in cash value, not trade in value. That leaves $7000.00. Your new car is $14,000.00. This means your contract will be for $21,000.00. Yes, it is scary. Now, due to your current scores, you are able to get a good percentage. Next, say your monthly payment on the two was $700.00 a month. The new car purchase with them included is now $500.00 a month for 60 months. You have saved $200.00 a month. Take even $50.00 a month and add to the new payment. It goes straight to principal. When you are comfortable with that, add another $25.00 a month. Before you know it, you are going to knock that minus out. Sit down with your actual numbers and see if it will work for you. Also remember that many institutions will rewrite after a period of time of constant on time payments. I hope this is something else that may help you. I sold cars back in the 70's and a childhood friend of mine has been in the business since 1968 holding all positions except owner. If you decide to do this, go to the dealership and be upfront with them. Tell them they must take both cars or you will go where they will. If you tell them the whole story and they step back, fine, go to the next dealer and don't say anything about the difficulty part. Just be sure you tell them in the beginning before they can even run a copy, they must agree to take both. You don't want all of the inq's even though they will be considered as one.

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Ouch; sorry to hear that, need to take a look at your credit report to see if there is any quick fixes for driving up the score as much as possible in a short period for you. That is the main concern here; to see if refinancing can be done then to get the balance down as much as possible.

What does your credit report look like, did any of the dealerships let you have a copy of the credit report; if not go back and ask for one, this way we will know what you fico looks like for the dealer industry.

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