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Friends car is in the process of repossession.

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Anonymous
Not applicable

Re: Friends car is in the process of repossession.

He should have tried a while ago to list the car up for sale... see if someone else is interested. Possibly list on CL or EB.... still a few days left and he just could get lucky. I think that's also an option, no guys?

 

Call Chrysler and try to buy some time.... list the car for sale. If he really wanted to save this he would have tried already. If not, jump ship.

Message 21 of 59
kjel
Established Contributor

Re: Friends car is in the process of repossession.

Is the car a necessity for your friend or does he have other transportation options? Is his monthly income sufficient to meet his basic needs and obligations? Reading between the lines of your post, it seems your friend is struggling financially either to insufficient resources, poor decision making, or a combination of the two. He is going to eat it one way or another and it is going to be painful. Regardless, some hard decision making needs to take place and he's got to be real about his overall financial situation.

 

I have a high interest loan from Santander, however I set a limit in regards to what was affordable for a monthly payment and selected accordingly. I did have two lates from when I was unemployed and sick, but I did call them and they offered to skip two payments by adding them to the end of the loan which brought the loan current and that was enough breathing room for me as I had recently gotten a job. I will tell you that it does mess with the amortization of the loan. With such a high interest rate pretty much every payment for the first year or so goes to interest, one way to get some of the payment to go towards principal is to pay before the due date which I often do. Perhaps his lender would be willing to do something similar so he can get back on track.

 

 

 

Current Score: TU: 674 | EQ: 722 | EX: 717 | Last Inq. 2/16/15...Locked Up in The Garden
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Message 22 of 59
RushXTC
Established Contributor

Re: Friends car is in the process of repossession.

That was my bad, This was his 2nd car, I thought they were about to take it, That's why I said "Had 2 cars", Didn't know he still had a couple more days left.

 

Anyways, He has 1 other car, It's an older, But more gas guzzling 1997 Mustang GT, Which all it needs is a washer for the clutch cable fork and it'll be good to go. He thought he could handle it, But then he began paying for his phone bill and internet and all this stuff and it was either that or the car... So he began paying for "Luxuries?" instead of the car...

 

I did tell him that if he's willing to go back to a stressful life and not be able to buy anything for himself, To keep the car, But if not, Then he should let it go. He said he talked to Chrysler and they're willing to let him pay $300 this check and $300 next, But that means he'd still be 1 month behind....

 

I don't know, If it was me in this situation I would just let it go. Refinancing would have been an option, Had he not missed credit card payments BECAUSE of the car.... Credit of mid 300's  will make it impossible, Lol.

 

I'll tell him to talk to Chrysler about the whole interest thing, 'Cause that is pretty messed up... Even with a high APR, It shouldn't come out of 100% Interest.... -_-.

 

Edit: Thanks for the information on Auctions, I'll let him know that it's not true he'd get around $5,000 like I thought.

Message 23 of 59
vertekal
Regular Contributor

Re: Friends car is in the process of repossession.

> Almost 100% of the payments are going to interest, So the balance doesn't seem to drop at all....

 

Did he get a 60 or 72 month loan? I'm guessing it's 72 months .. regardless, for the first few years of the loan, the majority of the payment will go towards interest. Over time, more and more will go towards the principal. After maybe 3 years, 50% will go towards interest and 50% towards principal. Towards the end of the loan, the majority of each payment will go towards the principal. 

 

I'm facing the same issue right now, with 2 cars we bought last year at 16.5% and 19%. 

 

Has your friend actually sat down and worked out a budget to see if he can afford to keep this car? Has he gotten quotes from other insurance companies to see if he can get a lower rate? 

 

I don't know the specs on his car, but a quick search shows that you can buy a used 2014 Avenger for under 20K all day long .. he can't sell it unless he can pay the difference between his payoff amount and what he sells it for. So even if someone were to offer him $20K for it, and his payoff amount is $22K, he'll need to come up with that extra $2K to make that work. 

 

If his credit is in the 300's, I doubt anyone will refinance him. I'm in the mid 500's and made on time payments every month for the past 12 months, and no one will refinance either of my cars. 

 

If I were in his position and was struggling to pay for this thing, and had mid 300's credit, I would let the thing get repo'd. Use whatever money he was going to pay on the Dodge to fix his Mustang (does he own it free and clear?) and start saving money. Work out a budget and stick to it. Do all the credit rebuilding things found on this site (secured credit card, fingerhut account, whatever else) and start getting some positive stuff on his credit report. And SAVE MONEY. He'll be able to get another car loan even with a repo on his record. Putting down a better down payment (not $600 like he did on the Dodge) will give him more options and a better APR next time.

FICO 8:
EQ: 1/2018: 494 | 4/2021: 652 (+158)
TU: 1/2018: 536 | 4/2021: 657 (+121)
EX: 1/2018: 499 | 4/2021: 641 (+142)

Mortgage Scores:
EQ: 9/2020: 560 | 4/2021: 648 (+88)
TU: 9/2020: 564 | 4/2021: 649 (+85)
EX: 9/2020: 576 | 4/2021: 672 (+96)

Message 24 of 59
RushXTC
Established Contributor

Re: Friends car is in the process of repossession.


@vertekal wrote:

If I were in his position and was struggling to pay for this thing, and had mid 300's credit, I would let the thing get repo'd. Use whatever money he was going to pay on the Dodge to fix his Mustang (does he own it free and clear?) and start saving money. Work out a budget and stick to it. Do all the credit rebuilding things found on this site (secured credit card, fingerhut account, whatever else) and start getting some positive stuff on his credit report. And SAVE MONEY. He'll be able to get another car loan even with a repo on his record. Putting down a better down payment (not $600 like he did on the Dodge) will give him more options and a better APR next time.


Yeah, He bought it in cash. This was his plan, But he keeps changing plans and like I told him previously, Those quick change of plans is costing him money. I told him to let the car go and continue building his 'Stang, Because if he loses the avenger later on, It'll end up costing him a bigger loss.

Message 25 of 59
vertekal
Regular Contributor

Re: Friends car is in the process of repossession.

I'm not sure what state he's in, but since the Mustang isn't financed he can probably get lower or minimum limits of insuance, saving him even more money. I'd think that without the Dodge payment and cheaper insurnace, he should free up almost $800/mo. 

FICO 8:
EQ: 1/2018: 494 | 4/2021: 652 (+158)
TU: 1/2018: 536 | 4/2021: 657 (+121)
EX: 1/2018: 499 | 4/2021: 641 (+142)

Mortgage Scores:
EQ: 9/2020: 560 | 4/2021: 648 (+88)
TU: 9/2020: 564 | 4/2021: 649 (+85)
EX: 9/2020: 576 | 4/2021: 672 (+96)

Message 26 of 59
RushXTC
Established Contributor

Re: Friends car is in the process of repossession.


@vertekal wrote:

I'm not sure what state he's in, but since the Mustang isn't financed he can probably get lower or minimum limits of insuance, saving him even more money. I'd think that without the Dodge payment and cheaper insurnace, he should free up almost $800/mo. 


You're exactly right. He's saving $800 by not paying insurance or the monthly payment on the car... That's why he likes how he has money for himself now, I linked him to this thread so he can see everyones opinions.

Message 27 of 59
Anonymous
Not applicable

Re: Friends car is in the process of repossession.

Just remember, your friend will be responsible for the deficiency. Chrysler will try to collect for a brief period but it will be sold off to another compnay soon enough. Your friend is probably looking at a ~$10K deficiency, with a debt like that he can expect to be sued or to receive a wage garnishment. 

Message 28 of 59
JKingg
Member

Re: Friends car is in the process of repossession.

so you guys saying im **bleep**ed then  D: 

 

Message 29 of 59
JKingg
Member

Re: Friends car is in the process of repossession.

The term is 72 at 23.3% $573.00 a month and the insurance is at $277  as of right now . 

close to 1k a month . 

 

Okay with the Repo . 
What should i expected from the out come ? 

Whats going to happen next after the repo ? 

Ami I  going to be sued in anyway ? 

Would I have to pay any damge to car? 

 

Message 30 of 59
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