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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.


@JKingg wrote:

 


They will come pick up the car, no matter what condition its in. They will auction the car. Whatever it sells for will be applied to the loan balance. Whatever is left on the balance you will be responsible for. Any damage to the vehicle will obviously reduce its auction price, so essentially, yeah you'll pay for damage indirectly.

You may or may not be sued, but its definitely a possiblity.

Whatever the balance is, try to make payment arrangements you can work with - i.e., something signifigantly less than $573 a month


 

Okay i see then . 

Hmm as of right i make some arrangemnts with the CP fin . 

I told them i woukld try to catch up and would pay 300 this friday and another 300 for the next next friday . 

should i just let it go and start working on my FICO

 The % of me getting sued ? and if i do get sued what would happen then ? 

 

 

 


Wow.... and read up ON FINANCING.... and APRs. You were probably just happy to get in the vehicle. Now I hope you learned what it all means.

 

Also, don't think about damaging the car cause I know you probably are Smiley Wink Remember more damage, the less it will auction for.

Message 41 of 59
Anonymous
Not applicable

Re: Friends car is in the process of repossession.

Catching up is not the important thing also.... the important thing is getting the rate lowered. Did you speak to them at all about that? Just in case you do decide to keep the vehicle?

 

Also when you got the vehicle how high was your score? Did your Fico drop to 300 after they reported a repo to your credit? What was your score before the repo was reported?

Message 42 of 59
RushXTC
Established Contributor

Re: Friends car is in the process of repossession.

The score was in the mid 600s when he got the car, then with missed payments it went to high 500s and when the car was reported as repossession it dropped to 300s.

Message 43 of 59
vertekal
Regular Contributor

Re: Friends car is in the process of repossession.

The finance company isn't going to just magically lower is APR by calling them. I'm not sure why people keep saying that. And no one is going to refinance him with a better rate with his current FICO and recent payment history, especially since he owes more than the car is worth. 

 

The only options are:

 

Keep struggling to pay the car + insurance every month, and most likely have it repo'd at some point in the future anyway.

 

or

 

Let the car get repo'd, use whatever money that was going to be used to catch up to fix the Mustang, and use the $800/mo you're saving to make sure EVERY CC gets paid on time and start building a good payment history. After a year or two, you'll be able to get another new car if you need one. If you do plan to get another new car in a year or two, start saving now so you can put a good down payment, which should give you a better APR than 23% (and improve your chances of getting approved based on the repo). 

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 44 of 59
Anonymous
Not applicable

Re: Friends car is in the process of repossession.


@vertekal wrote:

The finance company isn't going to just magically lower is APR by calling them. I'm not sure why people keep saying that. And no one is going to refinance him with a better rate with his current FICO and recent payment history, especially since he owes more than the car is worth. 

 

The only options are:

 

Keep struggling to pay the car + insurance every month, and most likely have it repo'd at some point in the future anyway.

 

or

 

Let the car get repo'd, use whatever money that was going to be used to catch up to fix the Mustang, and use the $800/mo you're saving to make sure EVERY CC gets paid on time and start building a good payment history. After a year or two, you'll be able to get another new car if you need one. If you do plan to get another new car in a year or two, start saving now so you can put a good down payment, which should give you a better APR than 23% (and improve your chances of getting approved based on the repo). 


This was just my understanding, but I thought having a repo on your credit would be automatic denial for most banks? How long does a repo stay on your report and is there any way to get them removed at all?

Message 45 of 59
vertekal
Regular Contributor

Re: Friends car is in the process of repossession.

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.

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 46 of 59
Anonymous
Not applicable

Re: Friends car is in the process of repossession.


@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.


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.

Message 47 of 59
Anonymous
Not applicable

Re: Friends car is in the process of repossession.


@Anonymous wrote:

@vertekal wrote:

The finance company isn't going to just magically lower is APR by calling them. I'm not sure why people keep saying that. And no one is going to refinance him with a better rate with his current FICO and recent payment history, especially since he owes more than the car is worth. 

 

The only options are:

 

Keep struggling to pay the car + insurance every month, and most likely have it repo'd at some point in the future anyway.

 

or

 

Let the car get repo'd, use whatever money that was going to be used to catch up to fix the Mustang, and use the $800/mo you're saving to make sure EVERY CC gets paid on time and start building a good payment history. After a year or two, you'll be able to get another new car if you need one. If you do plan to get another new car in a year or two, start saving now so you can put a good down payment, which should give you a better APR than 23% (and improve your chances of getting approved based on the repo). 


This was just my understanding, but I thought having a repo on your credit would be automatic denial for most banks? How long does a repo stay on your report and is there any way to get them removed at all?


Most lenders, yes, but if you show good payment history on the rest of your CR for a couple years you can probably get a a BHPH lot to give you a car or get a sub prime lender to pick up the note provided you have a good down payment (minimum 20%). As I described in a previous post, a lot of these note lots don't even care if you make payments after the first few months; they'll just remotely disable the car and use their GPS trackers to pick it up and then sell it off to another sucker... er, buyer for 20% down with 26% APR and do it all over again.

Message 48 of 59
Imperfectfuture
Super Contributor

Re: Friends car is in the process of repossession.

And obviously worse interest rates than what you pay now. Nothing personal, but somewhat a jaded view of car auctions being more generous than they actually are (and rather disparaging of former employees with differing viewpoints because they know this is a rigged scenario if you default).
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Message 49 of 59
Anonymous
Not applicable

Re: Friends car is in the process of repossession.


@Anonymous wrote:

@Anonymous wrote:

@vertekal wrote:

The finance company isn't going to just magically lower is APR by calling them. I'm not sure why people keep saying that. And no one is going to refinance him with a better rate with his current FICO and recent payment history, especially since he owes more than the car is worth. 

 

The only options are:

 

Keep struggling to pay the car + insurance every month, and most likely have it repo'd at some point in the future anyway.

 

or

 

Let the car get repo'd, use whatever money that was going to be used to catch up to fix the Mustang, and use the $800/mo you're saving to make sure EVERY CC gets paid on time and start building a good payment history. After a year or two, you'll be able to get another new car if you need one. If you do plan to get another new car in a year or two, start saving now so you can put a good down payment, which should give you a better APR than 23% (and improve your chances of getting approved based on the repo). 


This was just my understanding, but I thought having a repo on your credit would be automatic denial for most banks? How long does a repo stay on your report and is there any way to get them removed at all?


Most lenders, yes, but if you show good payment history on the rest of your CR for a couple years you can probably get a a BHPH lot to give you a car or get a sub prime lender to pick up the note provided you have a good down payment (minimum 20%). As I described in a previous post, a lot of these note lots don't even care if you make payments after the first few months; they'll just remotely disable the car and use their GPS trackers to pick it up and then sell it off to another sucker... er, buyer for 20% down with 26% APR and do it all over again.


Agreed..... $600 on a 15k+ car is insane. Clearly you can't afford it. Hopefully he's learned his lesson. I hate seeing things like this.

Message 50 of 59
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