     Laura G (Laura) | Saturday, June 24, 2000 - 04:45 am 
I have to do a voluntary repossession on a vehicle. Can someone please tell me the best way to handle it and what I can expect?
Thank you! |
| Shylock (Shylock) | Saturday, June 24, 2000 - 05:08 am
Don't. You are better off driving it full-on into a tree and having the insurance company pay off the credit company. |
| Senator (Senator) | Saturday, June 24, 2000 - 05:36 am
How many more months do you have on the vehicle? Who is the lender? Do not believe a word that is said by the lender, get it in writing. In 1996, I became very seriously ill and contacted GMAC about turning in my leased vehicle two months prior to termination. I was 60 days behind due to medical bills and just keeping food on the table. No disability insurance. It was ugly. They claimed no problem, showed up and took the car. On my credit report they slam danced me. That is what to anticipate. If you can avoid it, do so. Otherwise, chalk it up to another wonderful way Amerika works. |
| Laura G (Laura) | Saturday, June 24, 2000 - 05:50 am
Unfortunately, I cannot avoid it, I still owe several thousand dollars on it, and no one would take it as a trade in because of body damage and mileage. I am seven months pregnant, and it is a pickup truck. The baby would not be safe in it. I got a new car yesterday. I would sell it privately if I could, but the bank holds the title and no one will pay the balance on it considering the damage. I don't really have a choice. Do I just call them and tell them to take it? Do I take it to them (they're local)? Can I add a statement to my credit report explaining what happened?
Thanks! |
| Lynn Whealer (Lynnwhealer) | Saturday, June 24, 2000 - 06:07 am
I strongly advise you to do a keyword search on this board (and others) to see some of the pitfalls that you need to be aware of in a "voluntary" repo. From what I've read, you can expect that whatever you will be told about what will happen is going to be 100% undiluted horse-hockey. Get it in writing, whatever it is.
Also, understand that a voluntary repo and a forced repo will damage your credit report the same amount. No difference.
Consider the positions that you and the receiver are in: The receiver is probably going to lose money or not make as much as needed. This automatically makes you an undesireable customer. You also will be seen in their eyes as a "deadbeat". Double whammy. So they will have ZERO inclination to do anything for you at all. In fact, chances are they will be hostile, and actively lie to you so that you "get what you deserve, you good-for-nuthin' lowlife" for not lining their pockets to the extent they want. So unless, you have something that you can lord over them, you are holding the short end of the stick. Enter into this with the presumption that they will probably try (actively or thru neglect) to smack you with as much hardship as possible (getting their pound of flesh in lieu of a bucket o' money)....and they will not take even one-half extra step to assist you in ANY way. |
| Christine Baker (Admin) | Saturday, June 24, 2000 - 09:29 am
Yeah, and of course be aware that they *might* get a judgment for the deficiency and garnish your wages. |
| Shylock (Shylock) | Sunday, June 25, 2000 - 12:26 pm
Contact the bank and try to refinance the amount you owe onto a longer period loan. |
| John Shimmer (Jshimmer) | Monday, June 26, 2000 - 06:21 am
Unfortunately, I cannot avoid it, I still owe several thousand dollars on it, and no one would take it as a trade in because of body damage and mileage. I am seven months pregnant, and it is a pickup truck. The baby would not be safe in it. I got a new car yesterday.
You went out and purchased a new car while you still owed on the truck, knowing full well that you couldn't afford to keep both (or planned on just letting them repo the car)? No offense, but that wasn't very smart. And why is the truck damaged and not repaired? No insurance?
Voluntary repo will hurt you, credit-wise, as much as an involuntary repo. Either way, you didn't "pay as agreed". In addition, you WILL end up with a judgement for the balance (if you just give up the car and don't make payment arrangements), which hurts you (again) on your credit report.
Contact the lender and see what they can work out. Tell them you don't want to damage your credit. See if they'll work out a payment plan that leaves your credit history in good shape. |
| Shylock (Shylock) | Monday, June 26, 2000 - 07:58 am
To answer a previously asked question of Laura -- absolutely you can insert a statement into your credit profile explaining your side of the story. However, I seriously doubt that will do much good.
How many months are left on your loan? |
| Christine Baker (Admin) | Monday, June 26, 2000 - 01:40 pm
John, what makes you think Laura "WILL" end up with a judgment. I've had MANY clients with repos and NO judgment.
Did something change? |
| Laura G (Laura) | Friday, June 30, 2000 - 02:34 pm
I am going to have a baby, the truck is not safe for the baby. I am not sure how I will afford the baby herself (the father and I are not together anymore, but he will pay his half of her care, my concern is my own half). I can't afford a second car payment, but my primary concern had to be my child's safety. I have two and a half years left on this loan, and since the bank holds the title, I can't even sell it privately and try to make arrangements for the difference. Before I found out I was pregnant, I had refinanced the truck for the equity in cash since I had some financial difficulties. And I certainly can't afford to insure two vehicles either, which would be a requirement of the loan. As for insurance, I had a $1000 deductible at the time (no longer, I learned my lesson) to keep my rates down and they took that out of the payment. It really sucks because there are only two negative things on my credit report and they are both nearly seven years old so they will be coming off soon. Anyone have any other ideas? I can't keep the truck. |
| Christine Baker (Admin) | Sunday, July 02, 2000 - 12:26 pm
There is no magic.
Don't you have friends or relatives? Someone who could use the truck and you'll owe them the difference between value and the loan amount?
Or someone to loan you the money so you can sell it? |
| Laura G (Laura) | Sunday, July 02, 2000 - 01:29 pm
I thought about this, since I don't hold the title, I can't sell the truck to anyone else. And if the title remains in my name, and someone else gets in an accident, I could be held responsible since I am the "owner" of the truck (This happened to my father when he sold a vehicle and the person he sold it to didn't tranfer the title right away, then had an accident). No one I know has $7200 to pay it off, and I can't afford to continue the monthly payment. |
| michelle l belanger (Mlyn) | Sunday, July 02, 2000 - 02:47 pm
Laura, the fact that you do not hold title does not preclude you being able to sell to a 3rd party. The current lienholder *has* to relinquish the title upon payment of the balance due. Thus, if Christine's thought is the same as mine on this one, you could have a family member essentially rewrite the loan, becoming the purchaser of the vehicle.
WRT the issue of liability pending transfer, your copy of a bill of sale should absolve you of any claims that could be raised. Some states (I know Texas has a form) have a process that allows someone to file with the state vehicle registration department indicating that they no longer own the vehicle. In Texas, the fee is something like $5.00 |
| Christine Baker (Admin) | Sunday, July 02, 2000 - 02:48 pm
You're right, it shouldn't stay in your name. I thought somebody could pay off the loan, then you'd sell it, and you owe the difference.
That's the only way I can think of saving your credit rating other than parking it in the worst area of your town for a while and hoping it'll get stolen.
I had a similar situation with my old Taurus. I got screwed royally by South City Ford and both the car and the dealer were lemons.
During El Nino I often searched out big old trees to park under, hoping for a falling tree to total it, but no luck. Ended up selling for 60% off blue book. Maybe you'll do better! |
| Shylock (Shylock) | Sunday, July 02, 2000 - 05:37 pm
Put it up for an auction for someone to take over payments. Whatever the shortfall is between what is bid and what you owe you just pay to the bank or refinance onto a personal installment loan. |
