I need serious help..

[lola52]

Im a 20 year old college student,

i went and got an auto loan  and i didnt inspect the car when i bought i am stupid. Now the transmission is out and i havent driven the car since march. Ive made the monthly payments which are $315 a month. My job cut my hours and my monthly income is only $500 a month. I have a checking account charge off with them because i overdrafted my checking account for $2000. I still owe them that. 

I cant afford my auto loan and nobody will buy it. Ive exhausted all possible options. Sell it on craigslist, put it on ads, sell it to the dealership. Nobody wants it. 

Should i let them repo it? My credit score is 470. Please anyone with ideas or anything please help me. 

[0REDSOX7]

If you let them repo the car, they will sell it at an auction and you will be responsible for any deficiency balance between what it sold for vs the remaining balance of the loan.

Given the current state of the car, it may put you in a further hole and you'll have a repo on your credit report.

What is the balance of your loan?

[lola52]

$6000..

im at my breaking point. i dont know what to do 

[0REDSOX7]

What type of car is it?

[lola52]

2003 vw beetle convertible with 104k miles

[0REDSOX7]

You'd be looking at a deficiency balance for sure. If you're willing to let that happen, then by all means do so.

Have you called the lender to see if you can defer any payments, and use the deferred money to pay to fix the transmission?

[lola52]

Since i had the charge off checking account they transferred my loan to the collections department of the bank.. they will only let me work with one guy on the loan and he is very rude. He wont help me at all.

[coterotie]

How did the bank let you get $2,000 overdrawn?  My guess is this is all fees and service charges.  You can try to negotiate these down.

If the transmission was good you're probably looking at a 4k value.  Without the transmission $1,500.  So a $4.500 deficiency.

Ask to speak to a supervisor instead of the rude dude.  Lay it all out for them including the reduction in your hours.  Unless you can find a family member to bail you out, your best choice might just be to hand them the keys. 

$500/month income on $315 car payment plus insurance, gas etc. makes no sense.  Who takes care of all your other expenses if you are a student?

The only good news is you are probably judgement proof and they likely won't sue you and garnish your wages.  But that is a last resort kind of gamble.

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@lola52 wrote:

Since i had the charge off checking account they transferred my loan to the collections department of the bank.. they will only let me work with one guy on the loan and he is very rude. He wont help me at all.

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[lola52]

I do live at home with my mom and 5 younger brothers and sisters.

she is on disability and gets $700 a month and has to provide for the family. I also help her out with what i have. 

ive exhausted my options speaking to them but nothing :\

[coterotie]

Unless you can get back to making at least $2,000 per month, you can't afford a car note.  Likely you couldn't afford a car when you bought this one. (well I guess we proved that one)  If you could have paid cash for it is the only justification, but then you would still be stuck with a non-running non-productive asset.  Given your family dynamic, any debt you incur is bad debt as you have no personal reserves and no familial reserves.

As a piece of life advice, focus on getting an education that will provide a good income for you in the future.  Focus on that to the exclusion of all the other noise in your life.  Things like driving a cute car etc.  Get through school with great grades and all the rest will follow.  Don't borrow any money until you graduate from college and have a secure job.  Don't mean this to sound like a lecture, but you tried to skip a couple of steps and are now getting burned.

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@lola52 wrote:

I do live at home with my mom and 5 younger brothers and sisters.

she is on disability and gets $700 a month and has to provide for the family. I also help her out with what i have. 

ive exhausted my options speaking to them but nothing :\

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