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***Cosigned car for fiance**Please help very frustrated ***Need Advice

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kjones2011
Established Member

***Cosigned car for fiance**Please help very frustrated ***Need Advice

Okay I help  my fiancé cosign a car loan on a new car yesterday…and Im feeling very regretfull about it….

He has a very bad car loan for a dodge caliber he bought last year (upside down on it $8,000 with a 17.88%) plus the transmission is starting to go out $5000 job….the mo nthly payment was 490.00

So we went to a Nissan dealership and purchased a 2014 Nissan Sentra for around 19000…..go t a 13.9% Interest rate from capital one….he still has the same car payment on it……it has a nice warranty and maintenance….but still im feeling very quesy about this….he stated he will trade it in 2 years once credit has improved……

I have no problem helping my fiancé get on his feet but I hate how the sales person put in the recommendation that my fiancé don’t trade the caliber in but to do a voluntary repossession….th

He stated it will balance out in ti me….but I don’t feel like that is correct….it doesn’t sit well with me…since he already had a repo from 2009…..i feel like crap and I don’t feel like myself....i feel like i was munipulated into this situation b/c my fiance was  panicked about the car repairs on caliber and the dealership please help.......

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Message 1 of 17
16 REPLIES 16
Revelate
Moderator Emeritus

Re: ***Cosigned car for fiance**Please help very frustrated ***Need Advice

I'm pretty skeptical on that as well; I don't know the ins and outs of a "voluntary repossession" but it strikes me as a bad deal as if they can't get the full loan value for the car, it's going to wind up as a derogatory at a minimum, and might anyway even if they do.  Hopefully someone else is able to clarify that.

 

Really better off refinancing when credit improves (and it gets your name off of it), buying and trading in a car every two years doesn't sound like smart fiscal planning especially since he's likely underwater at that point anyway.




        
Message 2 of 17
Revelate
Moderator Emeritus

Re: ***Cosigned car for fiance**Please help very frustrated ***Need Advice

Moving this to the auto forums as the substance of the question needs auto expertise rather than relationship stuff.

 

Edit: apparently I made a hash of the move somehow.  Fixed




        
Message 3 of 17
sunshine7157
Regular Contributor

Re: ***Cosigned car for fiance**Please help very frustrated ***Need Advice

I believe you have x number of days to back out of a purchase at a car dealership. You should find out what those rules are in your state. Call a dealership if you have to.

Message 4 of 17
Fandi
New Member

Re: ***Cosigned car for fiance**Please help very frustrated ***Need Advice

Reposesions are a terrible thing to have on the bureau. Two of them are extremely naughty! Even if the going is so bad, that's the best way out of it. 

----

They probably are suggesting this reposession thing to you because of the numbers. See, the dealership probably can get the deal to work by kicking the trade. Captial One will finance your guy's deal and numbers will work if there is no trade. 

 

But I suggest If you repossess the caliber go a minimum of 4 years on the nissan loan.  My .02$. 

Age = 24
March 2014 = 728 EX, 733 EQ, 714 TU
2YR # INQ = 12 - Last Inquiry = 8/13
1 Open Installment | 2 Closed Installment
Brooks Brothers $900 | Chase Slate $400 | Elan Financial Services $8,500 | First Interstate Bank $6,500
Credit to Debt Utilization Ratio = Continuous 2% | DTI = 9%
Bureau Age = 5 Years | Total Trade Lines = 7 | Average Age = 15 Months
Goal = 760
Message 5 of 17
ohvrolla
Established Member

Re: ***Cosigned car for fiance**Please help very frustrated ***Need Advice

If your fiance does a voluntary repossession chances are good it'll affect his credit, so the plan of his credit being improved in two years is pretty suspect. As a side note the Caliber and Sentra both use Jatco CVT transmissions. 

Message 6 of 17
StartingOver10
Moderator Emerita

Re: ***Cosigned car for fiance**Please help very frustrated ***Need Advice

kjones2011, you are right to feel quesy and regretful about this 'voluntary repossession' that your fiance is planning.

 

1) Yes, it will hurt his credit for longer than two years.

2) Having a voluntary repo is just as bad as an involuntary repo for his credit.

3) There is no way he will be able to refi or trade his way out of this vehicle in two years with two repos on his credit. You mention that his last repo was 2009 - yet he could not get financing for this new purchase on his own without you even though it has been 5 years since his last repo.

 

The salesman mentioned the voluntary repo as a way to make the sale. Check to see if you can give the new vehicle back and UNWIND the deal TODAY. Might not be possible but you won't know without trying.

 

To answer your unasked question: yes, you were manipulated into a bad deal. Get out of it if at all possible. I am so sorry you were taken advantage of - by both the salesman and your bf. This puts you in a terrible spot. If you end up having to keep this deal, then you will need to make sure the payment is made ontime each and every month or your credit will be negatively impacted.

 

If you can't get out of the new purchase, than for goodness sake, don't let the fiance have his other vehicle repo'ed. Have him come up with the negative equity and sell it so that he has an actual paid tradeline on the car.

 

 

Message 7 of 17
Remember0
Valued Contributor

Re: ***Cosigned car for fiance**Please help very frustrated ***Need Advice

Couple of things...the posters above had good advice.

 

1) Did you have co-sign on this dodge that was suggested to be voly'ed?

 

2) You need to portect your credit NOW. What this means is you should have bf pay you directly for the payments and then YOU make sure the finance company gets paid. This way bf can't forget about the loan you've cosigned on or not want to tell you he's behind, earning you lates. You NEED to make the payments on the new loan, not him.

 

3) Yeah, sure, you can voly it, but the lender will come after him for the deficiency (or at least they MIGHT). Is your bf judgment proof (aka what state do you guys live in and what's his income)? For 8k, it's probably better for your bf to bite the bullet, see how much a place like carmax can give him for it, and come up with the negative equity. And yeah, with another voly, he won't be able tor efi the new car into his own name for at least 3-4 years probably. Down the road, if you guys want a mortgage the voly + unpaid balance could make it hard for him to be on the loan. And finally, if there's any marriage plans, be super careful...after marriage in some states, creditors can come after YOU for that deficiency.

 

If you haven't cosigned the caliber, you need to really watch out for number 2!!! You need to make sure those payments get there for the life of the loan regardless of if you guys breakup, whatever. If he stops paying you, you can work out to take the car from him (have him sign ownership to you), but make sure the finance co. gets paid.

Message 8 of 17
kjones2011
Established Member

Re: ***Cosigned car for fiance**Please help very frustrated ***Need Advice

No I did not co-sign on the dodge......Thanks for the advice....it really helped me clear my mind........we cannot go back on the purchase....already called the dealership......I also have a car loan with capital one....i track my car note every month and i will add this one to that same account.....I will make sure the payments are made and if we were to break up and he cannot make payments i will go for ownership of the car since i am on the title and the buyer on the car.....at this moment we will be going to couples counseling and get a lot of this worked out.....

Experian 667 Transunion 655 Equifax 623

Walmart $3000 CL, VentureOne $5250 CL Best Buy $2500 CL
Macys $3300-Wells Fargo $4000 David's Bridal $2500 CareCredit $2500 Zales $2000
Message 9 of 17
Remember0
Valued Contributor

Re: ***Cosigned car for fiance**Please help very frustrated ***Need Advice

Okay, if you didn't cosign that Dodge, I'm not too worried. You are on top of making sure the payments go through...good! That's really my primary concern.

 

Also you seem to have a handle on the Dodge. I will say this: I know you probably think strategic default (what a voly really is) might be wrong/whatever. But your bf/the salesman might have a point too. THink about the people who bought homes in NV, AZ, FL, CA just before the crash! They were underwater like 100k+. Most walked away, and to this day I'll say they made the smart decision and that more should have done what they did. No such thing as "ethics" in business. Heck, had I had the unfortunate luck of buying a home and was underwater 100k+, I'd have walked away in a heartbeat.

 

Now over 10k (8k + 2k for the tranny), a strategic default may very well not be worth it. It really depends on a lot of things. The biggest ones are probably which state you're in and whether your bf has any assets that can be liened or if his wages are garnishable in his state. Let me put it this way: if he makes like 20k/yr, in a lot of states, it might make sense to not bother. After all, that's half his yearly salary and in most states he can't be garnished. You guys just have to cautious if there's a marriage or something coming up. Also be VERY careful with joint bank accounts if there's a default. Probably a bad idea if he earns something like 40k. Plus at that wage level, he can more realistically save up the 10k required to dump the car.

 

If you have any other questions like "We live in blah state, will my bf be liable to a garnishment if he has x assets and y income?" or "If we get married in x state, can they go after my assets?" feel free to ask here. We may refer you to another section of the forum, but we'll try our best.

Message 10 of 17
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