Mannerheim

How do I deal with the finance company re: dead car.

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Hello

Several years ago, I bought a used 2005 Cadillac CTS. I wasn't thinking! I took out a long term loan, so my payments would be cheaper; and with the assumption that I would get rid of it after a few years. That didn't happen, and the car is now almost 11 years old. As a result of the bad loan choice, I still owe about $10,000 on the car. Ridiculous, I know! To make things worse; last week, during a snow storm, a tow truck operator burned out the starter motor, and it was eventually discovered that the car wasn't starting, because the timing chain was bad. Total needed repairs are now about $6,000.00. Obviously, the car is not worth the investment. I even pursued replacing the engine for around $4,000.00, but the mechanic said that the 2005-2006 models of these cars were just bad, and that the timing chain would be the first of many future expensive problems.

I have another car to use temporarily, but very shortly, I will have to buy a new one. How do I best get rid of of turn back this car, without damaging my credit so bad, that I can't get another loan?

Thanks for any advice you might offer.

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CCRP626 might have the best option but realize you are paying back the $10,000 + interest due to your poor choice. All other options would ruin your credit and probably force to to purchase a car with cash or at a ridiculous interest rate.

The other option would be to pay on the loan until you get the next car and then stop paying and let the repo company get the CTS. You will still have bad credit up not until after you get the next car.

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Unfortunately you are just going to have to eat the pain on this one and roll some of that negative equity into another purchase.  Mechanical problems 11 years after purchase are not going to make the loan obligation go away.  Those are just a consequence/risk of owning a car.

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