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If you owe 16K on a car worth 8K and don't have the money to pay the balance to the lender what should you do?
Wiki User
∙ 8y ago
If it hasn't been repoed yet, try to sell it yourself. You should get MORE than the lender will if they sell it. You will HAVE to do this with the lenders agreement. By all means, stay in contact with the lender and BE HONEST with YOURSELF and the lender. You are in a credit mess that will be hard to get out of.
Is this a short term problem or a long term problem. Are you behind on 1 payment or 2 because you lost your job (long term) or you had unexpected expenses(short term).In the case that this is a long term problem you should try to sell the vehicle or trade down. Remember you may still have a balance to pay after you sell the vehicle. Should this be short term problem ie: laid off with return date,unexpected expenses (medical bills repair bills etc)you should contact you lender and see about an extention or deferment depending on the lender. An extention is where you would move the November payment to the end of your loan and your term will be extended by one payment. A deferment will move your November payment to the end of the loan and add it to your last payment. You will end up making a double payment at the end of the loan. these are 2 examples from 2 different lenders. Ford Motor Credit does extensions and Arcadia TranSouth Citigroup does deferments. Check with your lender they maybe able to help you.
Wiki User
∙ 8y ago
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Contact the lender and explain the situation. They may be able to rearrange the loan so that you can make the payments. You could also sell the car and pay off the loan. If you are upside down on the loan, ie owe more than it is worth, you may be able to sell the car, give the lender the amount it brings, and take out a personnel loan for the balance. Bottom line is do all in your power to avoid having the car repossessed. If they repo the car you will be responsible for not only the difference in what they sell the car for and the balance on the note, but also the repo fees. Your credit will also be ruined for 7 years. Don't let it happen. Talk to the lender, ASAP.
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If the lender refuses to pick up the car and still wants you to pay the balance what do you do?
K, you can deliver the car to the lender OR you can look at it. There is a reason WHY they wont pick it up. Does it run? Is it wrecked? Is it worth P/U? I suspect it is NOT. Whatever happens , you WILL pay the balance. Your best option is to make some kind of payment arrangements with the lender. Large or small, send something on a regular basis. Good Luck
You just had a car repossessed because you can no longer make the payments or maintain full insurance coverage Now the lender keeps trying to call you What should you do?
Depends on if you intend on paying the lender any money. Unless you file for bankruptcy they can call your house requesting that you repay them. At some point (saying you owe enough money to make it worth while) they can bring you to court and sue you. I think the statue of limitation for this type of lawsuit is 2 years (if they do not try to sue you in this time period then they cannot come after you ). If you plan on paying the lender, you can most likely make a deal that will only allow you to pay .50 on the dollar that you owe (the lender would rather receive half then nothing). If you do not intend on paying the lender, your best option is to not communicate to the lender (when they call).
If your repossessed car is worth about 6000 and you owe approximately 25000 can your pay check be garnished for the balance after the car is sold?
In most states, YES. The lender can garnishee the signor AND cosignor wages and/or attach other personal property.
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What do you do when you stop making payments on a car and you've asked the car company multiple times to pick it up haven't paid them in over a year but the car's still sitting in the driveway?
The car company is not who you should be speaking to. The lender who loaned you the money to purchase the car is the lien holder and the entity that actually owns the car. That is who you need to contact. Something is not right here. Normally the lender would not hesitate to repossess the car when you miss a couple of payments but an entire years worth of payments is unheard of. First off, know that once the car is repossessed they will sell it for whatever they can get. You will then be responsible for the difference between the balance on the loan and what the car sells for. Example: The balance on the loan is $8,000 and they sell the car for $5,000. You will have to pay $3,000. You will also have to pay the repossession fees. Your credit will also be ruined for 7 years. All of this is to be avoided if possible. My advice is to contact the lender and see if something can be worked out to avoid repossession.
