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I lost my job and now can't afford my car payments anymore. Should I just give it back to them? (my credit is already bad so it isn't going to hurt me anymore) Anyway, I was just thinking about taking a couple grand when I get my student loan money and buy a cheap used one. Is that a good idea? I just can't afford 300+ every month anymore.
Tell me your thoughts?
Ps, No I can't pay it off because it costs way more than it is worth.
I would never pay that much for car payments........take it back......maybe lease one used, not buy....they depreciate way too fast! not worth it. IMO.
Their choice is to take it back or get it repossessed!
You can explain that you can't guarantee you'll find another job that will pay enough to afford THAT amount? maybe they can lower your payments? I don't know........
Bottom line is you should be honest and explain that you just lost your job and as much as you would LOVE to keep your car and continue to make payments, you just can't at the moment....and see what they suggest?
Maybe THEY will suggest you downgrade to another car that may be more affordable?
it is insane to burden yourself with $300 monthly payments for a car before you are well-established (i.e. finished school, payed off student loan, have a secure job, have a savings account, have no other debt besides maybe a house, etc.).
two bad decisions don't make one good one. all cars payed off by responsible people are worth less than they cost as soon as payments begin. welcome to the world of depreciation. this, in part, would be why you don't spend $300 a month on a car when you can not afford the luxury of burning money.
unless the world has changed while i was sleeping, you can not just give a car back. it is outrageous enough that so-called homeowners can welch on their bets.
as to whether you'd be better off dumping the car and buying an older one, you need to do the math. look at what an older car costs, look at what repairs will cost over a few years, what will be the insurance differences (older might be cheaper to insure). also look at how much you will lose when you sell your new car and how much money you will have to come up with to satisfy the loan you originally took out on it. and see which way works best for you. worst case scenario: consider this a good if expensive lesson in finance.
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Repos are bad news all the way around, no matter how you slice it.
It will probably hurt your credit far more than it is already suffering. Repos generally hit credit reports and scores as hard as home foreclosures and judgments, they are not counted the same as the run of the mill type of charge off. Plus, not only would you have the repo reporting but eventually a collector and a possible judgment reporting as well.
Then, if that isn't bad enough, you will more than likely still owe after the dust settles. Some people find that they owe almost as much, sometimes even more, than what they owed pre-repo.
When a vehicle is repoed you will be held responsible for all repo costs, and they add up quickly. The vehicle will be sold at a repo auction for somewhere around 25%, possibly a tiny bit more, of what you owe. Throw the Blue Book out, it won't be used by the sellers.
You will owe the difference (deficiency amount) plus all of the fees that were incurred.
Call the creditor and talk to them. Never leave them out of the loop. It's possible that they may work with you. Ask them.
A few other things that you might consider.....
Try to find a job, even part time, that will pay you at least enough to keep up the payments and insurance.
Sell the car yourself, even if you have to take a loss that you must make up out of your own pocket.*
Find someone who will take over the payments, just be sure to have a well written contract.*
Ask family members for help.
*discuss those options with the creditor before taking either of those two actions!
Repos are bad news all the way around, no matter how you slice it.
It will probably hurt your credit far more than it is already suffering. Repos generally hit credit reports and scores as hard as home foreclosures and judgments, they are not counted the same as the run of the mill type of charge off. Plus, not only would you have the repo reporting but eventually a collector and a possible judgment reporting as well.
Then, if that isn't bad enough, you will more than likely still owe after the dust settles. Some people find that they owe almost as much, sometimes even more, than what they owed pre-repo.
When a vehicle is repoed you will be held responsible for all repo costs, and they add up quickly. The vehicle will be sold at a repo auction for somewhere around 25%, possibly a tiny bit more, of what you owe. Throw the Blue Book out, it won't be used by the sellers.
You will owe the difference (deficiency amount) plus all of the fees that were incurred.
Call the creditor and talk to them. Never leave them out of the loop. It's possible that they may work with you. Ask them.
A few other things that you might consider.....
Try to find a job, even part time, that will pay you at least enough to keep up the payments and insurance.
Sell the car yourself, even if you have to take a loss that you must make up out of your own pocket.*
Find someone who will take over the payments, just be sure to have a well written contract.*
Ask family members for help.
*discuss those options with the creditor before taking either of those two actions!
What that feller said.
Why give the car up if you WILL be paying for it anyway when you get sued after the auction?
You might as well just make some changes to your monthly cash outflow and find a way to bring in a bit more income.
I lost my job and now can't afford my car payments anymore. Should I just give it back to them? (my credit is already bad so it isn't going to hurt me anymore) Anyway, I was just thinking about taking a couple grand when I get my student loan money and buy a cheap used one. Is that a good idea? I just can't afford 300+ every month anymore.
Tell me your thoughts?
Ps, No I can't pay it off because it costs way more than it is worth.
Could you try to sell it for as much as you can get for it, then take that money to put towards your loan, and then refinance the rest of the amount (the difference) that you owe? Could you get around without a car for awhile? Use the bus or bike or walk or carpool?
How do people use their student loan money for things other than books and tuition and school-related expenses? I've always wondered about that...
Could you try to sell it for as much as you can get for it, then take that money to put towards your loan, and then refinance the rest of the amount (the difference) that you owe? Could you get around without a car for awhile? Use the bus or bike or walk or carpool?
How do people use their student loan money for things other than books and tuition and school-related expenses? I've always wondered about that...
loan money is used for expenses to live... financial aid money is used for school.. however what is not used for school is deposited into your bank account after 4 weeks in class. If I give my car back from what I am told they will sell it and I will still have to pay the rest. So I am just trying to find a job now.
Thank you all for you input
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