Cap One Auto.. 65%

[Anonymous]

Hi Everyone I'm a newbie.   You guys are good so I thought I would throw this at ya....     Ok got a letter from Cap one auto Fi with an offer to settle my auto loan.  It says they will settle the debt for 65% of the full balance. The full balance is $7,700.  65% was like $5,000. Now, giving the car back is NOT an option since it's easily worth over $20,000 so that would be a mistake. I know I could sell it and just pay the balance in full and have money left over but I'm attached to it and don't want to! Plus its a rare vehicle that could go up in value later and might be hard to find another one like it in the future. 

The repo man has been randomly passing by, knocked on the door and peeked in my back yard once too. Luckily car is in the garage so he cant get in or even see it at all. Anyway I would like to get past this mess and get the title for this car before they somehow take it. It was a 60 month loan which I paid 47 months ($27,000 in payments ) until I lost my job!  So now the question.....  I'm getting $1,800 back from tax refund and can borrow $1500 from grand parents = $3,300. I might be able to come up with another $700 to make it $4,000. even.  Do you think they would settle for that???  I won't be able to come up with any extra $$ for a while and I'm tired of hiding like a criminal!     Thanks.

[mcnamara69]

You have the settlement offer in writing to pay 5k instead of 7.7k.

From the cap one's perspective =>>>> Failed attempts repoing the car, possible solution? Lawsuit =>>>>> costs around $1000-1500 (probably) =>>>>> legal limbo.

Instead, offer $5005 and move on!

I would say that if you have the loan # or VIN of the vehicle on the settlement offer then go ahead and take the offer. However, I know that you can only come up with 4k at the moment, but once you call them about the 4k then it is highly possible that the so-called customer service dude will run the VIN and play the equity card which will boot the 5k offer off the table. BTW do not take your car out of the garage.

Once they get your car, then kiss good bye to the equity cuz they sell the cars in a dealer only auction which will bring the worst selling price you could ever imagine, I mean worst than what Carmax would offer you. Then after that, non sense charges such as repo fee, auction fee, this and that fee will be taken out of the "actual selling price" and I am sure you would be left with absolutely nothing.

My buddy's 2008 7 series was financed by Cap 1 and was voluntarily repoed.

[Anonymous]

Hi Richard_Cream & Welcome!

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@Anonymous wrote:

Ok got a letter from Cap one auto Fi with an offer to settle my auto loan.  It says they will settle the debt for 65% of the full balance. The full balance is $7,700.  65% was like $5,000. Now, giving the car back is NOT an option since it's easily worth over $20,000 so that would be a mistake. I know I could sell it and just pay the balance in full and have money left over but I'm attached to it and don't want to! Plus its a rare vehicle that could go up in value later and might be hard to find another one like it in the future. 

The repo man has been randomly passing by, knocked on the door and peeked in my back yard once too. Luckily car is in the garage so he cant get in or even see it at all. Anyway I would like to get past this mess and get the title for this car before they somehow take it. It was a 60 month loan which I paid 47 months ($27,000 in payments ) until I lost my job!  So now the question.....  I'm getting $1,800 back from tax refund and can borrow $1500 from grand parents = $3,300. I might be able to come up with another $700 to make it $4,000. even.  Do you think they would settle for that???  I won't be able to come up with any extra $$ for a while and I'm tired of hiding like a criminal!     Thanks.

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I doubt that Cap1 would accept less than what they're offering. Why, when they're more than likely to eventually repo the car and get the benefit of the full value of it, while leaving you with a seemingly impossible balance due? And, even if they do accept a settlement (what they offered to you, or your lower counter-offer) they're probably just going to sell the remaining balance to someone else who you'll be liable to for payment. I think that you should sell the car, if you can, and pay the $7700 due. I think that's pretty much the only thing that's going to end your liability for the debt that you legitmately owe.

A car is a car... it's not worth unnecessary financial hardship, or your peace of mind.

[cdtotten]

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@Anonymous wrote:

 Plus its a rare vehicle that could go up in value later and might be hard to find another one like it in the future. 

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What car is it... curious why it's rare.

My suggestion is take the settlement if they put it all in writing and you agree to the terms. You legitimately owe the money, and if you don't pay they will find a way to repo the car (which is their right to do). Just make it easier on yourself.

[Anonymous]

Thanks for the reply, I'm leaning towards your advice... Just trying to come up with the extra $1,000 at this point.  The one thing I did do is fib about the miles when cap one asked me I told them it had 175,000 miles on the car.     In reality I only bring it out once in a while on nice days and car only has 8,500 miles.  I don't want to say right now exactly what kind of car it is in case they happen to read these forums!  (Paranoid a little?; yep) Haha.  Anyway the milelege diff would SIGNIFIGANTLY affect the value in their eyes. (Book value too obviously. They said they use N.A.D.A.) Also they think the car is a base model with smaller engine and much less equipment....  But like you said I'm worried about them running the vin# which would show some of the equipment diff and catching on that I tricked them.

So I'll keep an eye for any extra advice for now while I try and get the extra $ 1,000 together. But if anyone can tell me how to save the cash I'll be your friend forever!!

[JBjunior]

You are not in a position to be making an "investment" at this time.  If the car is worth $20,000 then sell it and pay the debt that you owe.  When you can't scrounge together $5,000 to get them what they need to prevent repossession then you need to do the right thing.  The longer you delay the more likely they will repo the car and then you are stuck with nothing but a debt......

[Anonymous]

When did this forum become a place to encourage dishonesty and fraud?

Lets take a look at whats been said in this post, 'cause I got issues with it.

By the OPs admissions:

1- The OP is unemployed.

2- The vehicle is worth $20,000, but he owes $7,700.

3- Giving the vehicle back is not an option because he is attached to it and its rare. (Wow I wish I could make those decisions in my life)

4- the OP is going to go into more debt to his grandparents

5-The OP wants to play the system and give less then he owes  and get the title so he can keep the "rare" vehicle.

6- the OP has "fibbed," which is you know "LIED" telling lies to devalue the car in Cap1s eyes so they will be willing to settle instead of ask for the vehicle back.

7-there is by the OP's posts a $13,000 equity in the car.

Its a car, not "one ring to rule them all"- and you are not living under a mountain.

Sell it, pocket the money and pay your bills. I mean man up and pay your freaking obligations. Life sucks you are unemployed but you need to get over your entitlement mentality that you should be able to lie and hide and get the cake and eat it to.

You want to keep the vehicle, a vehicle you do not drive and want to savor and save because the value will go up. Is it that hard to pay your obligations, sell the car, and live your life and go on?

You don't drive it you obviously do not need it. Sell it and get yourself some money to live on.

I would have been more OK if you came in here and your post was not based on lies and deceit to the finance company, and you were simply trying to get real help out of your circumstance, but with what you say it just seems seedy.


When you have put yourself into a situation where you have lied so much that you think the finance company might be reading your anonymous internet posts and are too fearfull to give to much information--you know I think you may be a little criminal in your dealings and definately your intent.

I am all for friendly supportive and respectfull, but come on.

i wonder if your grandparents know what a dishonest person you are? 

[mcnamara69]

Just to be sure i would pull the carfax and autocheck history to know the last reported mileage by the dealer or service shop.

[Anonymous]

Super contributor guy you're rediculous! Come on, I can understand your perception to a point but mostly it's WAY OVER THE TOP.

Just to give you a few other facts I put $5,500 dwn and made 47 payments out of 60 of 550 amonth.  The price of the vehicle was around 26,000.  So they already got their money back + 4 or 5k of interest. Now we are fighting over how much more interest they would collect. I'm offering $4000 more which lets them make around $8,000 in a bad economy that took an honest working mans job. That's fair enough, GET REAL.  You really want to call "FRAUD" on a guy like me and stick up for the big banks that ran this country into the ground?  Go fill out a job app with the Fed Reserve...  they are looking for guys like you.      

P.S.  I'll be sure to tell my grandparents what a dishonest person I am.  

[Anonymous]

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@Anonymous wrote:

Super contributor guy you're rediculous! Come on, I can understand your perception to a point but mostly it's WAY OVER THE TOP. My perception is based on what you have stated in your posts.

Just to give you a few other facts I put $5,500 dwn and made 47 payments out of 60 of 550 amonth.  The price of the vehicle was around 26,000.  So they already got their money back + 4 or 5k of interest. Now we are fighting over how much more interest they would collect. you contracted all that and you contracted the interest you would pay. People should live up to thei robligations, not decide to change them when it suits them that is how contracts work- you initiated it, you approved it you signed the paperwork. I'm offering $4000 more which lets them make around $8,000 in a bad economy that took an honest working mans job. Is this really just some kind of entitlement "**bleep** the man" thing because you lost your job?  I lost my job two Sunday's ago I paid Amex today. That's fair enough, GET REAL.  You really want to call "FRAUD" on a guy like me Yes and stick up for the big banks that ran this country into the ground?  Actually people like you did commit fraud they declared incorrect amounts and values to get loans at terms they wanted. The big banks were also victims as well as perpetrators-lies happened by everyone. And then the minute their circumstances changed and/or their house of cards collapsed people walked away from their obligations-that does sound really familiar.Go fill out a job app with the Fed Reserve...  they are looking for guys like you.      

P.S.  I'll be sure to tell my grandparents what a dishonest person I am.  Do you actually think that "Fibbing" that a car has 170,000 miles on it for you to help get what you want is not even a tiny but dishonest?

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To be clear- you are talking of  a car that by your own admission you do not drive, have never really driven, and in essence one you never really needed in the first place.  Its an extra car with equity on it.

I am just not able to feel sorry for you.  And you justification is all blaming everyone else but you and trying to blame the economy on your rationalization?

If this was your one car, that you needed, to cart your kids and family and everything was on the up and up, thats one thing, but purposefull "fibs" on an extra vehicle?

And it is fraud: the only reason Capital One is agreeing to settle is that your self report of an odometer reading of 170,000 miles devalued the car enough for them to not pursue the matter through the courts with you but to go through a settlement.  Telling a lie for Gain is fraud.

Definition of Fraud

All multifarious means which human ingenuity can devise, and which are resorted to by one individual to get an advantage over another by false suggestions or suppression of the truth. It includes all surprises, tricks, cunning or dissembling, and any unfair way which another is cheated.

Source: Black’s Law Dictionary, 5th ed., by Henry Campbell Black, West Publishing Co., St. Paul, Minnesota, 1979.

WHAT CONSTITUTES FRAUD
Under common law, three elements are required to prove fraud: a material false statement made with an intent to deceive (scienter), a victim’s reliance on the statement and damages.