Friends car is in the process of repossession.

[Anonymous]

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@RushXTC wrote:

So, my friend has been working on his credit for about 2 years now, He got some credit cards, But missed some payments from an early start.... Then one of his family members screwed him over and caused a t-mobile and a time warner cable account to go into collections, Which unfortunately he's paying for now and no one would approved him for a car, obviously.

So in Jan. 2014, After looking everywhere, we finally came accross someone who would approve him, Chrysler Financial, They offered him a 2014 Dodge Avenger with 23% APR, Which is super high... For only $600 down. He agreed and had planned to refinance, Unfortunately he struggled with the huge amount he was paying, which was $600 a month and $300 for insurance, So one month he wouldn't have insurance and another he couldn't pay the car... Tried to refinance a bit sooner but denied, So the car is up for repossession, His credit score dropped to the mid 300's.

My question is, Will the credit cards he has right now, That have been paid on time, Be affected at all by this? Also, How does one improve a credit score with these things on record?

Is the last resort to just pay the cards currently held and wait the 7 years so they can be deleted? I just want to help him out, He had 2 cars anyways, So he won't be in need of another car soon, But for future purposes I'd like to help him fix it back up.

Any advice would help greatly!

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I know this is a few days old. I did comment earlier in this thread. I was randomly thinking about your friends situation and was wondering if CarMax would be an option for him? He can probably take it into them and get a buy out price within 30 minutes. They usually would give you more than the dealer. Not sure what state you guys are in but just to help save his credit from a repo he should consider that if its possible. Not sure if I am missing anything here but I think that should be a feasable option?

[Anonymous]

From CarMax's website:

20. What if I have a lien on my car?

We will need to contact your lien holder during business hours to get a 15-day payoff. To pay off the lien, we will need your lien holder's name and phone number, the name(s) on the account, and your lien holder's account number and social security number. If a previously paid-off lien is listed on the title, you'll need both the title and the lien release from the lien holder before we can purchase your car.

Hope this is helpful to you. And next time please be smarter

[Anonymous]

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@RushXTC wrote:

So in Jan. 2014, After looking everywhere, we finally came accross someone who would approve him, Chrysler Financial, They offered him a 2014 Dodge Avenger with 23% APR, Which is super high... For only $600 down. He agreed and had planned to refinance, Unfortunately he struggled with the huge amount he was paying, which was $600 a month and $300 for insurance.

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Why does it seem like it's always Dodge/Chrysler dealers that line buyers up with predatory terms?

Why is his insurance so darn high? Has he had a conviction for DWFR or DUI/DWI or a combination thereof?

[Anonymous]

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@Anonymous wrote:

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@RushXTC wrote:

So in Jan. 2014, After looking everywhere, we finally came accross someone who would approve him, Chrysler Financial, They offered him a 2014 Dodge Avenger with 23% APR, Which is super high... For only $600 down. He agreed and had planned to refinance, Unfortunately he struggled with the huge amount he was paying, which was $600 a month and $300 for insurance.

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Why does it seem like it's always Dodge/Chrysler dealers that line buyers up with predatory terms?

Why is his insurance so darn high? Has he had a conviction for DWFR or DUI/DWI or a combination thereof?

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Young age (under 25) combined with a high rate area (some metro areas are ridiculously high), can easily equal rates of 3-5K a year for full coverage. I remember my brother complaining over twenty years ago about his rates in Philly being over 3K a year.

[vertekal]

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@Anonymous wrote:

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@vertekal wrote:

As far as I know, they stay on your credit report for 7 years. I have one from 2008 that's scheduled to come off next year, although it's listed as CHARGE OFF instead of REPO. Not sure if that matters.

I actually have 2 repos on my CR and was able to get financed. Granted, the APR sucks (16.5 and 19%) but I still got 2 cars a year ago.

My problem came a year after I bought both cars, made all my payments on time, and wanted to trade them in and get something with a better APR. Since the APR was so high, the payments I was making went mostly towards interest (not principal). So basically I owed a lot more on my cars than they were worth. If I had to do it again, I would have made extra payments against the principal every month. Or, saved enough money to cover the difference between what I owned and the trade value.

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Ahhh thanks for clarifying that. With 16 and 19% how much are your monthly payments and how much goes towards interest if you don't mind me asking? Wifey and I just purchased a vehicle 6 months ago and it was around 6% but we plan on refinancing now that its 6 months later.

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@I don' t have the exact figures, but one was $24,000 @ 16% and about $460/mo and the other was around $16,500 @ 19% and about $400/mo. 

After a year of paying on both of these, it looks like roughly 2/3 of each payment goes towards interest. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@RushXTC wrote:

So in Jan. 2014, After looking everywhere, we finally came accross someone who would approve him, Chrysler Financial, They offered him a 2014 Dodge Avenger with 23% APR, Which is super high... For only $600 down. He agreed and had planned to refinance, Unfortunately he struggled with the huge amount he was paying, which was $600 a month and $300 for insurance.

---

Why does it seem like it's always Dodge/Chrysler dealers that line buyers up with predatory terms?

Why is his insurance so darn high? Has he had a conviction for DWFR or DUI/DWI or a combination thereof?

---

Young age (under 25) combined with a high rate area (some metro areas are ridiculously high), can easily equal rates of 3-5K a year for full coverage. I remember my brother complaining over twenty years ago about his rates in Philly being over 3K a year.

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I was under 25 once and in a large metro area and my insurance for full cover never even came close to those numbers. $700/6mos was the average for me.

[Anonymous]

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stonesy wrote:

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RushXTC wrote:

So, my friend has been working on his credit for about 2 years now, He got some credit cards, But missed some payments from an early start.... Then one of his family members screwed him over and caused a t-mobile and a time warner cable account to go into collections, Which unfortunately he's paying for now and no one would approved him for a car, obviously.

So in Jan. 2014, After looking everywhere, we finally came accross someone who would approve him, Chrysler Financial, They offered him a 2014 Dodge Avenger with 23% APR, Which is super high... For only $600 down. He agreed and had planned to refinance, Unfortunately he struggled with the huge amount he was paying, which was $600 a month and $300 for insurance, So one month he wouldn't have insurance and another he couldn't pay the car... Tried to refinance a bit sooner but denied, So the car is up for repossession, His credit score dropped to the mid 300's.

My question is, Will the credit cards he has right now, That have been paid on time, Be affected at all by this? Also, How does one improve a credit score with these things on record?

Is the last resort to just pay the cards currently held and wait the 7 years so they can be deleted? I just want to help him out, He had 2 cars anyways, So he won't be in need of another car soon, But for future purposes I'd like to help him fix it back up.

Any advice would help greatly!

---

I know this is a few days old. I did comment earlier in this thread. I was randomly thinking about your friends situation and was wondering if CarMax would be an option for him? He can probably take it into them and get a buy out price within 30 minutes. They usually would give you more than the dealer. Not sure what state you guys are in but just to help save his credit from a repo he should consider that if its possible. Not sure if I am missing anything here but I think that should be a feasable option?

Unfortunately he's upside down on this car. He owes $22k on a car that's maybe worth $12k to Carmax. In order to sell he has to have the difference in cash to pay it off.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@RushXTC wrote:

So, my friend has been working on his credit for about 2 years now, He got some credit cards, But missed some payments from an early start.... Then one of his family members screwed him over and caused a t-mobile and a time warner cable account to go into collections, Which unfortunately he's paying for now and no one would approved him for a car, obviously.

So in Jan. 2014, After looking everywhere, we finally came accross someone who would approve him, Chrysler Financial, They offered him a 2014 Dodge Avenger with 23% APR, Which is super high... For only $600 down. He agreed and had planned to refinance, Unfortunately he struggled with the huge amount he was paying, which was $600 a month and $300 for insurance, So one month he wouldn't have insurance and another he couldn't pay the car... Tried to refinance a bit sooner but denied, So the car is up for repossession, His credit score dropped to the mid 300's.

My question is, Will the credit cards he has right now, That have been paid on time, Be affected at all by this? Also, How does one improve a credit score with these things on record?

Is the last resort to just pay the cards currently held and wait the 7 years so they can be deleted? I just want to help him out, He had 2 cars anyways, So he won't be in need of another car soon, But for future purposes I'd like to help him fix it back up.

Any advice would help greatly!

---

I know this is a few days old. I did comment earlier in this thread. I was randomly thinking about your friends situation and was wondering if CarMax would be an option for him? He can probably take it into them and get a buy out price within 30 minutes. They usually would give you more than the dealer. Not sure what state you guys are in but just to help save his credit from a repo he should consider that if its possible. Not sure if I am missing anything here but I think that should be a feasable option?

Unfortunately he's upside down on this car. He owes $22k on a car that's maybe worth $12k to Carmax. In order to sell he has to have the difference in cash to pay it off.

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Yes, you're right..... so it would put him back at square one.

[Anonymous]

Note I said "some" metro areas. It's by no means a universal truth. Some are really high, and some are not. I gave my brothers specific experience in the Philly area many years back. He complained that in Philly it was $3500 a year, but when he moved back to California it dropped to around $1500. So its one of those "Your Mileage May Vary (A LOT)" situations.