Internet's first get-out-of-debt community - 123,000 members

Posted: Tue May 13, 2008 1:07 pm Subject: Default auto loan

my auto loan is in default, the interest is to high, the monthly payment is over 400 dollars, did anyone ever used the sample letters provided on this site in order to get a better interest rate? I need keep my car, thank you all..MFS

Posted: Tue May 13, 2008 7:15 pm Subject:

Hi Piccolapariqi, Have you contacted the bank that is holding your car note? We had some issues one time and I called them and explained, they acually let me skip 2 months to get caught up, I didn't ask about reducing the interest, the 2 month skip did the trick. But, if your bank says no, call around depending on the age and milage, someone might be willing to work with you.

Phoenix · Posted: Tue May 13, 2008 11:46 pm Subject: Auto Loan Refinance

Dear Piccolaparigi,

From your query it is clear that you are stuck with the high interest rate car loan. At the same time you don't want to part yourself from your car. In this situation the best option in front of you is to refinance your auto loan.

Refinance is a method through which you can take out another loan to pay-off your existing one. Following steps are involved in auto-refinancing: -
1. The new lending company will pay off your existing loan to the old lender
2. Then new lender will work with you and offer you a lower payment structure
3. During the loan transfer process you only need to give the approval for the same and sign some important documents. The entire transfer of loan will be worked out by the new and the existing lender.

So, go shopping for Auto Refinance Loan and lower your total payment as much as possible. It will definitely save you from parting with your car.

Regards,
Phoenix

Joshua2u · Posted: Wed May 14, 2008 12:23 am Subject:

Hello Piccolaparigi,

Yes, refinancing will definitely help you to get out of this mess.

Some of the advantages of car refinance:-
•You will be able to keep your car
•You can make substantially lower payments on your refinanced loan
•Even in case of bad credit, the car refinance loan provider will help and guide you to refinance your existing loan
•You can save a lot of money through refinancing. E.g. If you can save $100 per month (which is very much normal) on a $23,000 loan of 5 years then during the life of the refinanced loan you can save up to US$6000.

So, best of luck and go shopping.

Joshua

Roger12 · Posted: Wed May 14, 2008 1:11 am Subject:

Yeah… everything what Phoenix and Joshua said is absolutely fine. But before shopping please keep in mind that the amount of money that you can save through refinancing varies from person to person, company to company and situation to situation.

Generally, the factors on which your saving will depend are:-
1.Balance left in your current car loan
2.Any change in term of the refinanced loan from the existing one
3.Difference in interest rate between the two loans

Thus, always look into different car refinancing companies before opting. So shop aggressively for the best possible refinance loan from this highly competitive loan market.

Posted: Wed May 14, 2008 12:12 pm Subject: auto default

about asking the lender if by turning over the car voluntarily i could be cleared of the loan obligation... making sure to get any kind of compromise in writing. I might also could request that the creditor not report my inability to pay the original loan to the credit bureaus.....how all thit does sound?

Posted: Wed May 14, 2008 1:04 pm Subject:

Even if you turn the car in voluntarily if will be considered a repossession. Usually when that happens the car is sold at auction and you are sent a bill for the amount remaining between auction price and loan balance. You will also most likely get a form to file with your taxes for any write off amount.

I would look at the refinance before you turn it in to the creditor.

*Name:
*Email:
*Phone:
*Zip:
Debt

	* denotes required field

Internet's first get-out-of-debt community - 123,000 members

Default auto loan

Members Area

Free Debt Counseling

Ask the community

Featured Discussions

Featured Articles

Question of the Month

Useful Links

Recent Forum Discussions

Recent Blog Post