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Voluntary surrender of vehicle?


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My 19 year old step-daughter purchased a vehicle about 5 months ago from a good-looking salesman. She paid too much for too little, but you really can't convince her of that, 'cuz I'm sure we all remember how smart we were at 19!

She's "currently" current on the payments and insurance, but it's a struggle. She's getting ready to go active in the National Guard, spending the next 6 months down south for training, then a year overseas.

We're trying to get all the specifics on what she owes, what the car's worth, etc., but it's like pulling teeth! I'm not sure if it might be better for her to keep the car, and keep making payments on it while she's gone, or if there might be some way she can surrender the vehicle back, and put the payment money into savings to have a good down payment when she gets back?

I know this might be a tough one to give an opinion on without all the specifics, but I was wondering if anyone has been in a somewhat similar situation, and how to approach this. Thanks in advance!

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Just got a "sneak peek" at her statement. Looks like she just made her third payment (last 2 payments at once, as she was late!) on a 5 year loan. Not sure how much money she put down, if any. She owes a little over $12,000 on a car that has a excellent/high Kelly book of about $10,000. And the car is NOT in excellent condition, having some brake problems already.

I guess she has some kind of warranty, but not sure of the specifics. She missed an oil change by a few miles, so it sounds like part of the warranty is void. The new stereo in it sounds great though!

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If she is ALREADY late, then she may not need to voluntarily surrender the car because a lot of outfits will usually repo it...

Their logic is simple...

If you are ALREADY having problems making the first couple of payments, then what makes you think that you are going to be able to pay this off in four or five years?

I have personally known people that have had their car repo'd that way. One ex wife of a friend was late on her first payment. She was only like three days late on the second payment and BAM, it was repo'd...

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Ok, first problem - if she gives the car back voluntarily its a lose-lose situation. It is STILL a repossession and it will go on her credit reports as a repo. The vehicle will be sold, probably for far less than its worth, and your DD will be on the hook for the difference and collection agencies and a lawsuit is possible.

Soooo, I'd say her best bet is one of 2 options - keep paying on it or SELL it for as much as she can get for it. She'll have to find a way to make up the difference if she can't get what she owes, but owing the difference would be far less than owing the whole 12K.

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My 19 year old step-daughter purchased a vehicle about 5 months ago from a good-looking salesman. She paid too much for too little, but you really can't convince her of that, 'cuz I'm sure we all remember how smart we were at 19!

She's "currently" current on the payments and insurance, but it's a struggle. She's getting ready to go active in the National Guard, spending the next 6 months down south for training, then a year overseas.

We're trying to get all the specifics on what she owes, what the car's worth, etc., but it's like pulling teeth! I'm not sure if it might be better for her to keep the car, and keep making payments on it while she's gone, or if there might be some way she can surrender the vehicle back, and put the payment money into savings to have a good down payment when she gets back?

I know this might be a tough one to give an opinion on without all the specifics, but I was wondering if anyone has been in a somewhat similar situation, and how to approach this. Thanks in advance!

Why not have her invoke the Soldiers and Sailors Civil Relief Act that prohibits creditor collection actions against deployed military. She should talk to her JAG. Maybe she can do both - deploy and keep her car.

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