Financed Car - Undriveable - Behind on Payments - What are options?
Date: Wed, 06/27/2012 - 15:52
August 2011 our 1999 minivan died, to replace the engine would cost $2000-$5000.
It was financed; 3 month warranty and we'd had it about a year- all on time payments. Had about 2 years worth of payments left.
We called the finance company. They couldnt help us at all; not even to move a month or 2 of payments to the end of the loan. They were borderline rude about it.
We scraped together $1000 and bought a used van. Alot less nice than the financed one but its actually been working pretty well. We had to spend some money on a rental car for about a month as well. Difficult time but made it through.
Anyway we are now 6months behind on payments. We have the old van outside in the parking lot- they never repo'd it. We dont want it. We cant use it. We also cant afford it b/c 1. we can't make up all the missed payments and 2. Hours have been cut at work alot. Not sure we could even afford the monthly payment had nothing happened.
I'd like to just take the thing to a salvage yard and get $500 for it; but can't b/c we don't have the title. It just sits there and mocks us. Atm if they were to sue us or whatever we would most likely have to file bankruptcy - if we could afford an attorney.
Is there any advice you can give me? What to do with the car, How to deal with the lender, Any Options or a Way Out?
Thank you.
It was financed; 3 month warranty and we'd had it about a year- all on time payments. Had about 2 years worth of payments left.
We called the finance company. They couldnt help us at all; not even to move a month or 2 of payments to the end of the loan. They were borderline rude about it.
We scraped together $1000 and bought a used van. Alot less nice than the financed one but its actually been working pretty well. We had to spend some money on a rental car for about a month as well. Difficult time but made it through.
Anyway we are now 6months behind on payments. We have the old van outside in the parking lot- they never repo'd it. We dont want it. We cant use it. We also cant afford it b/c 1. we can't make up all the missed payments and 2. Hours have been cut at work alot. Not sure we could even afford the monthly payment had nothing happened.
I'd like to just take the thing to a salvage yard and get $500 for it; but can't b/c we don't have the title. It just sits there and mocks us. Atm if they were to sue us or whatever we would most likely have to file bankruptcy - if we could afford an attorney.
Is there any advice you can give me? What to do with the car, How to deal with the lender, Any Options or a Way Out?
Thank you.
Call the finance company and ask them for a settlement. If they
Call the finance company and ask them for a settlement. If they agree to a significantly reduced balance, then good. If not, go for voluntary repo.
Call a towing company and have them return it to the dealership
Call a towing company and have them return it to the dealership where you bought it from. It's a called a voluntary repo.
Dealership would have no interest in the vehicle...I would tow i
Dealership would have no interest in the vehicle...I would tow it to the finance companies parking lot. They will still more than likely pursue you for the balance.
Bankruptcy...it a bankrutpcy is not that complicated, look for a paralegal filing service. They generally charge about $200 to prepare your paperwork.
