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Gotta Auto Loan Question???/

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lavonda
Valued Member

Gotta Auto Loan Question???/

I filed bankrupcy in October 05, discharged in Jan 06, Auto loan was reaffirmed with wells fargo auto finance and they are no longer reporting to the credit bureau. I want to get out of this loan, I have  02 Trailblazer with 80,500 miles on it and still owe about 16,500. Anywho my scores are not the best, Have a 605 on experian and 565 on equifax, unsure of trans union. Can anybody give me any advice on what I should do at this point since I am wells is no longer reporting. I want to do a trade and get another lender but I am lost. Somebody please help.
Message 1 of 10
9 REPLIES 9
tpere925
Established Member

Re: Gotta Auto Loan Question???/

First of all you owe way to much on that vehicle!  My guess without looking in book is that your 02 trailblazer (if it is a loaded LT) is worth about 9000 trade.  Sure other dealers can play the numbers game with price of your next car, but that is all it's worth sorry to say!  Your only option is to buy new and bury that negative equity into that loan.  
Message 2 of 10
lavonda
Valued Member

Re: Gotta Auto Loan Question???/

Hey thanks for the response, I have come to the conclusion that is what i am going to have to do. I guess I was robbed on that deal three years ago when  I got the truck. I have since learned by lerking on these boards and learning new information.
Message 3 of 10
Anonymous
Not applicable

Re: Gotta Auto Loan Question???/

Lavonda, don't act too fast on trading that Trail Blazer in. It's true that your negative equity will be included in whatever you purchase... and guess what that does to you: it puts you WAY upside down in another vehicle.

If I were in your shoes, I'd tough it out with the Trail Blazer and make the payments for a while longer. At some point, if you take good care of the vehicle it will hit bottom on depreciation and you'll be able to pay it off or owe less than it's worth.

Only THEN would I go and trade it in. It's never a good idea to put negative equity on a new car because even BEFORE you add the trade in red ink, that new vehicle immediately loses 10-20% in value the minute you drive it off the lot. You don't want to add to your woes. Your scores aren't that bad, and the longer you pay on that Trail Blazer on time, the more your scores will continue to rise.

Stick with what makes sense, in my opinion.
Message 4 of 10
lavonda
Valued Member

Re: Gotta Auto Loan Question???/

Hey CreditHawk, thanks for the reply, It all makes sense what you are saying. Maybe I will do just that. Hey got another question, How bad does an auto repossession affect your credit scores.  I was just wondering.
Message 5 of 10
Anonymous
Not applicable

Re: Gotta Auto Loan Question???/

Gosh, Im going through the same thing. I have an 05' Grand Am w/ 70,000 miles on it. I owe $12K the Max I can get is $7,600. That's why I don't wanna trade it in, I have someone who is willing to assume the loan. It's just a matter of getting what I want. I might just wait another year...who knows.But if I were you I would NOT trade the Blazer. Now that would be a HUGE mistake. You'd be paying on both vehicles FOREVER!! I did have a sales guy tell me something about "Profit and Loss". It's something like an account showing net profit and loss over a given period. So right now if I gave my car back to the finance company, they can't ask for the remainder balance. Because I have technically paid for the car. EX: My auto loan was originally for $16,600, over the past 30 months I have paid the finance company $11,370. If they sold my car right now they would get anywhere from $5,000-$7,600. Bringing in a total of $16,370-$18,970. Meaning they have been paid for the loan. And it shows up on your credit as "Profit and Loss". It does however take like 10pts. off your credit score. Not sure how true the info is, but that's what I was told.
Message 6 of 10
urlosin
Valued Member

Re: Gotta Auto Loan Question???/

Don't listen to that salesman. He is trying to get you to do something that is borderline illegal (getting financed before the repo hits your bureau)and if the finance companies that buy their loans knew about it they would drop them in a heartbeat. If you give a car back to the lender regardless of terms, it is a repo...no ifs, ands, or buts. You signed a paper agreeing to pay the loan in full. Unless you get something in writing saying they will settle for less (you won't) it will be a repo.
Message 7 of 10
Anonymous
Not applicable

Re: Gotta Auto Loan Question???/

I thought the same thing. I kept asking him what was the difference between Profit & Loss, and a Voluntary Repo. And my example is what he kept telling me. Im like dude you can't be serious. I had never even heard of such a thing, and he said to me "Don't tell the bank about it, because you could get into some serious trouble". Well DUH! They will tell you anything so you buy their car. That's just one of the reasons why I left the dealership.
Message 8 of 10
urlosin
Valued Member

Re: Gotta Auto Loan Question???/

Good move. I have worked for a few dealers (both Ford dealers), and if that guy was working with me he would have been fired for prompting you to commit fraud. Maybe I am the exception rather than the norm, but the first dealer I worked for was not the least bit dishonest or shady. At the second one I saw a few shady things, but they benefited the customer.
Message 9 of 10
Anonymous
Not applicable

Re: Gotta Auto Loan Question???/

I wish I would have known where that dealer was located before I bought my car.  My experience has been that many, many car salesmen are shady.  I briefly worked in the business office of a car dealership several years ago and quickly learned all I needed to know about them.  In their defense, the pressure on them coming from the higher ups is tremendous and they do work on commission.  On the other hand, one can make a dollar honestly and without taking complete advantage of the customer.
Message 10 of 10
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