Car repossession

Discussion in 'The Okie Corral' started by FryCook, Feb 27, 2010.

  1. FryCook

    FryCook

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    I have an 03 yukon xl that I owe around $15,000 on. My financial situation has changed since we bought it mainly due to a business deal gone bad. We sold a business to a guy who went bankrupt owing us 40K which we will never see.
    I have recently started a new business but cash flow is tight so I have fallen behind in payments, plus the truck has needed a few repairs lately costing in the thousands.
    How bad will it be for me for the bank to take the truck. I know they will auction it off and I will be responsible for the remaining balance. I figure anywhere from 5 to 8 grand depending on the auction price. This will look very bad on my credit.
    My only other option is to try to trade it in and end up with an upside down loan (if another bank will give me one) but at least then I wont have a default hanging over me.
    Any advice is much appreciated.:dunno:
     
  2. DR. HOUSE

    DR. HOUSE Everybody Lies

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    It trade it off and get as much as you can out of it.
     

  3. freeride88

    freeride88

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    Sell it for what you can get, cover the rest with a personal loan and learn your lesson. Be smart and buy used cars you can pay cash for.

    Craigslist in my area has Yukon XLs around that year priced at $9k-11k. Dump it and pay off the rest. Don't take a repo for a few thousand dollars.
     
    Last edited: Feb 27, 2010
  4. ExxoticOne

    ExxoticOne

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    Have you tried to work anything out with the finance company?
     
  5. GIockGuy24

    GIockGuy24 Bring M&M's

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    An involuntary repossession and a voluntary repossession affect you credit score by exactly the same amount.
     
    Last edited: Feb 27, 2010
  6. buckhunter3987

    buckhunter3987

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  7. ray9898

    ray9898

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    He cannot do that unless he can come up with the money to cover the difference between market value and what he still owes.
     
  8. RCP

    RCP

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    How can you sell something you don't own? :dunno:

    You might be able to find someone to take over the payments so long as the bank is willing to transfer financing into their name.
     
    Last edited: Feb 27, 2010
  9. okie

    okie GT Mayor

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    That's a big bite of a crap sandwich my friend, I'm so sorry that happened to you:sadangel:
     
  10. jp3975

    jp3975

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    Trade it in for a used car and refinance maybe?
     
  11. pulaskipusher

    pulaskipusher Topodaworldma!

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    I traded my truck and knocked out ten grand of debt. Very similar situation here, worked out well for us. Hopefully it works out as well for you.
     
  12. ju993rnaut

    ju993rnaut

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    wow, oweing 15k on a 03 yukon like your already a bit upside down. ifyou traded it you would probably be assuming more debt. If the bank allows you to refi that might help out your situation but seeing that you have already missed some payments they maybe some what leery. For some people letting things like this go is worth it because the people owe way more than what the vehicles worth. Just my .02dont know your exact financial situation.
     
  13. IndyGunFreak

    IndyGunFreak

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    This.. You'd be nuckin futs to go upside down that far in another new truck, just to avoid a repo on your credit. I'd just be prepared to lose this vehicle. Go somewhere and buy a 1-2k car, and use the savings on the car payment, to start stockpiling cash for when the lender comes after you.

    I have a friend going through this exact situation. He knew the economy was in the toilet and was effecting our work. Went out and financed this beautiful F150. He barely had it a year. I think it was 27 new, they sold it for 17. I think his court date is next week. The problem is, when you let it go to auction, you have absolutely no control over what it sells for. If you can't sell it, you can't sell it, but you need to be getting together some $$ to fight this battle.

    IGF
     
    Last edited: Feb 27, 2010
  14. Geeorge

    Geeorge Sarcasm Inc.

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    Got full coverage insurance and like to park in bad neighborhoods?:whistling:
     
  15. MattHappyTrails

    MattHappyTrails

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    If one is borrowing to buy a car and the term is more than 3 years, they should seriously consider gap insurance.
     
  16. IndyGunFreak

    IndyGunFreak

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    What does GAP insurance have to do.. with anything in this thread? Gap insurance would only cover if he wrecks the car, etc.. Not if he sells it for less than its worth because he can't afford it or it gets repo'd

    IGF
     
  17. the iceman

    the iceman Proud Veteran CLM

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    I'm sorry to hear you're upside down on your car payment and about to lose it. I can't imagine the feeling.

    Good luck!
     
  18. RustySocket

    RustySocket

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    Start with this approach.

    Go to your lender. Let them know you can't make the payments and are going to return the vehicle to them, your planning of filing bankruptcy.

    More than likely they will come up with a payment schedule and extend the terms of your loan.

    You've got a 7-year old truck that your buried in. At auction it will be lucky to bring 5K-6k that still leaves the bank eating 9-10K in a discharge. Rather than do that they are likely to refi you.

    It's worth a try, if your going to lose the truck anyway...


    If it does get repoed.... don't fight with the fat chick and end up on tv..... lol
     
  19. noway

    noway

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    lessons learned,

    Don't buy on credit and extend yourselfs.

    I live debt free for at least 4years now. What I charge on visa/mastercard is paid off that month.

    I don't owe a car note and only a house loan.


    I'm also interested in your "car work that entails thousand of dollars on a vehicle that's only 7years old". I own like 3 vehicles years 200,1997 & 1987 all paid for and none combine , equals thousand of dollars in repairs cost per year for the 3.

    Sounds like bad decisions makin on your parts.
     
  20. MtBaldy

    MtBaldy Obie Wan, RIP

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    This is what I would recommend. The bank does not want your truck. They do not want to sue you for the difference. They do not want to eat the difference if you file for bankruptcy. If you have a good payment history and be honest with them they may try to work with you. They may not too but it's worth a try.