Looking for advice upside down with 21% rate

[vtguy25]

I had to purchase a new car right before I filed bk7 because my payments were not high enough to qualify for chapter 7 so my lawyer told me to buy a car because I didn't have one in my name at the time was driving a beater that my mom purchased.  So I end up buying a 2011 with 55k miles and total amount financed was 13900 after warrantee that I HAD to purchase from the dealer. My payments are 343 for 72 months with 21% through Sandanter.  I have made 8 about to make the 9th payment but I am to upside down to refi with a local CU but I want to get out of this terrible loan. Do you think that it is worth my time to try and trade it in and roll in the negitive.  I have good auto loans on my report from three or four different loans before.  My discharge was in Nov 2013.  I am looking at at least 5k in negitive eq.  My scores right now are 548 600 568... I want to get a brand new car with AWD as I drive for work.  Just looking for peoples experinces with rolling in negitive equity.... am I to early to be trying to get into something new??  Thank you for any advice.

[Credit_Tard]

Surrender it to the lender. Buy a beater off of craigslist for $1,500. Pay cash from now on. Learn to work on your own car when it needs repairs.

That's my advice.

[vtguy25]

Thanks for the advice unfortunately that's not an option the loan was reaffirmed with bk7.

[Credit_Tard]

I don't know anything about bankruptcy, but I do have common sense.

Just curious, was the amount discharged in bankruptcy much more than the $13,900 of additional auto debt your lawyer had you take on? Seems strange.

And you said the loan was reaffirmed, does that mean you absolutely cannot default on the loan as a condition of your bankruptcy? I mean, you can't just stop paying and have them repossess it? It can't hurt your credit much more than a bankruptcy did. And it would save you a ton of money over the next 5 years.

[notfancy]

How far upside down are you? Can you pay that amount with a tax refund or anything? Once you do that, then you can probably refi.

[Creditaddict]

Great idea for craigslist and fixing cars ourselves but not an option for many and op says they drive for work so a beater isn't usually option for that either.

okay op, brilliant attorney you had, what did you buy?

how much do you owe?

Do you have a carmax around you? Go ask for trade in offer!!! Otherwise what is trade in value estimate?

how much cash do you have?

what credit have you gotten since the bk? Limits and with who?

any relationship with credit unions?

[vtguy25]

I got a 2011 Nissan Versa I do not have a CarMax near also I owe 13100 before my payment on the 28th.  I have about 1500 in cash but am in the process of fixing a mobile home that I own outright so can't really use that for a car at this point.  I looked up the value the high trade value was around 7500 and the high retail is 10100.  I do have a realtionship with a credit union where I have my checking and savings account never had any loans with them.  I only have my car payment and just got this month a credit card from Milestone Gold visa.  I wanted to refi with my credit union they will finance 110% of high NADA value which it would have be 11100 ish so still 1700 shy.  It isn't like I can't afford the payment I just don't want to pay santander all this money. 

[notfancy]

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@vtguy25 wrote:

I got a 2011 Nissan Versa I do not have a CarMax near also I owe 13100 before my payment on the 28th.  I have about 1500 in cash but am in the process of fixing a mobile home that I own outright so can't really use that for a car at this point.  I looked up the value the high trade value was around 7500 and the high retail is 10100.  I do have a realtionship with a credit union where I have my checking and savings account never had any loans with them.  I only have my car payment and just got this month a credit card from Milestone Gold visa.  I wanted to refi with my credit union they will finance 110% of high NADA value which it would have be 11100 ish so still 1700 shy.  It isn't like I can't afford the payment I just don't want to pay santander all this money. 

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Check with your CU then and see about getting a better rate through them if you refi. If you only have to pay down 200-300 in order to not be upside down, that isn't too bad. Also if you can refi you'll save a ton over the length of the loan. Good luck, and please let us know how it goes.

[Creditaddict]

What is milestone gold? Limit, fees?
What credit union?
Have you asked them what they consider the value of your car? They may use a different number then you thought for book and apply and see what the most they will take is.
Maybe they will give auto loan and small $1-2k unsecured loan to pay difference, if it's local see if you can chat with someone directly about your issues and needs and see.

[StartingOver10]

vtguy, please don't surrender the vehicle. As you stated you reaffirmed it in your BK. Having a default/repossesson after your BK is a credit killer. It is much, much worse than a BK alone.

Do as suggested and refi the loan as soon as possible with your CU.

Just so you know for the future, no lender can require you to take a warranty for the vehicle. If you read the contract, it will state in writing that the warranty is optional. I have no doubt that you were told it was mandatory because I have been told the same thing. But not only is it not mandatory but it is a well known scam that auto dealers pull on consumers unless the consumer pushes back. For me, I just pointed out the section in the contract to the F&I guy that said the auto warranty was OPTIONAL. And I said if it wasn't removed, I was leaving. I actually got up and started out the door before he caved in and removed it.  You have to protect yourself -even during times of financial stress.

Check out the top car buying scams online - you will see the 'forced warranty' is one of them. Now you know.