Completely in left field subject

[beccamay 1]

Good Morning to all.

I was wondering if anyone new the reprocussions of having a car sent back to the dealer. I am finding that my car is overwhelming me and my life with it's large payment but i am not sure what to do. I am continusously in financial hardship because of the car and even one month behind. I am not sure how this would/could affect my credit and what else i would have to do after it went back. I am not sure if anyone has gone through this but any advice will be greatly appreciated.

[KarenA 0]

I am not sure about the car, but the financing is probably through a 3rd party. If you simply send it back to the dealer, you may be hit on your credit report. A friend was able to trade the higher priced car in for a lesser price model, thus reducing the payment. Another option is to try and sell it on your own. You will probably get a better price for it that way. Good luck

[nightingale2u 42]

Hi Becca...

Letting the car go back will be a definite bad mark on your credit... I would avoid that if at all possible. Is it possible that you could sell it for at least what you owe on it? It would be worth it to do that and save your credit history. Having bad credit makes life a bit tougher but it still wouldn't be the end of the world. Wishing you the best... sorry you are going through this...

[CCBSTX 0]

1) Try to sell-private party for what you owe.

2) Trade it in for a cheaper car.

Good luck. Shawn

[maudeispam 2]

Have you tried refinancing it through a local bank or credit union? My hubby refinanced his truck and streched the payments out a couple more years, thus making the monthly payment smaller. Best of luck.

[Jonathan 5]

Returning it to the dealer will result in a reposession on your credit report. Short of a forclosure or a bankruptcy, it's the worst thing you can have there, and it will adversely affect you for many years to come, resulting in higher interest rates on any loan that you are able to get.

Chances are, you're upside down in the car, or you would have just decided to sell it and get out of the loan altogether, so that's probably not an option that's available to you.

Trading the car in on something cheaper is usally a mistake as well, since you'll just be wrapping negative equity into a new vehicle.

Although I don't know what your exact situation is, chances are the best thing you can do is to get caught up, somehow, and keep making those payments, until you owe less on the vehicle than you can sell it for.

I know that's not what you want to hear, and probably isn't very useful to you, but a repossession is going to hurt you for a very long time, and in ways that can easily add up to tens of thousands of dollars over the long haul in higher interest rates on everything from credit cards to car loans to mortgages.

Whatever you decide, I wish you the best of luck.

Jonathan

[K@t 38]

My mom had the same problem, she bought a truck and then had problems making the payment, but because she was upside down on the loan she (she owed more then it was worth) trading it in wouldn't have helped and selling it she would have taken a loss. (she ended up selling it at a loss)

What I would suggest is trying to make the payments until you owe about as much as the car is worth so you can trade it in with no negative equity......or you can refinance it to have smaller payments, however that would give you even more negative equity..assuming you are upside down on the loan. If your really desperate, try to sell it at a loss, and then just take ur loss with a grain of salt and try to purchase a cheaper car. There are sometimes situations where instead of selling the car out right, you can have some one take over payments....so they would essentially buy it for what you owe on it. That may be a possibility as well.

Good luck this isn't easy, those sales men always like to get us in over our heads...poor guys, its their job though.

[TheWomanWithin 0]

If you own a home, can you refinance or get a HELOC and pay the car off? that would help and give you tax benefits of the refinance or equity line.

btw...if worse comes to worse - voluntarily give the car back to the dealership, don't let them repo it - and if you haven't talk to your finance co. first