topic Re: Regretting auto loan! in Auto Loans

Regretting auto loan!

Goodscore81 — Thu, 01 Aug 2013 16:42:08 GMT

I'm not sure what to do. I got an auto loan for a family member in 2011. It is a 3year loan with a ridiculous APR. Since doing this, I have regretted it the whole time. Payments have been a mess. 5 -30days late and 1 60-days late. I'm doing everything I can to get my credit together. I have had a CO removed, collections deleted, and new lines of credit established. This car loan is making my life miserable!!! When the finance company calls me, I never know what to tell them. UGH!!! What options do I have to get rid of this loan? There is about 15 months left to make payments.

Re: Regretting auto loan!

pizzadude — Thu, 01 Aug 2013 16:46:10 GMT

What is the approximate value of the car and the amount owed on the loan ?

I'll move this to Auto Loans, should get feedback there.

Re: Regretting auto loan!

Goodscore81 — Thu, 01 Aug 2013 17:31:40 GMT

It's worth about $6k and about $6k is owed. The trade in value would probably be about $4500.

Re: Regretting auto loan!

Anonymous — Thu, 01 Aug 2013 17:38:22 GMT

Well the most obvious idea is to sell the car and pay off the loan since you said you bought it for someone else. If they have failed to meet the obligation then they shouldn't have the asset. It is probably not going to be possible to refinance to a better rate given the history of this loan. If you want to keep the vehicle you will need to see what you can do to accelerate the payoff. Although as you are more than halfway through the note you have already paid the greatest portion of the interest and your payments are probably now reflecting reduction in principal more than just interest. But any amount of additional payment on a monthly basis will still save something and get it done faster.

Re: Regretting auto loan!

dabrian — Thu, 01 Aug 2013 21:51:51 GMT

Sell asap!! At a loss if must be.

Re: Regretting auto loan!

azguy13 — Sat, 03 Aug 2013 07:04:54 GMT

I would sell asap. Sorry to hear of the situation. Hopefully others will learn from this.

Re: Regretting auto loan!

StartingOver10 — Sat, 03 Aug 2013 14:01:42 GMT

@Goodscore81 wrote:
It's worth about $6k and about $6k is owed. The trade in value would probably be about $4500.

Don't even consider a trade in.

Sell it. Even if you have to bring a few bucks to the closing to pay if off it will be worth it to get rid of the monthly payment for another 15 months.

Re: Regretting auto loan!

Goodscore81 — Thu, 29 Aug 2013 20:20:42 GMT

I didn't get a chance to thank everyone for their input.... thank you!

Re: Regretting auto loan!

Anonymous — Thu, 29 Aug 2013 20:37:52 GMT

And were you able to do anything to correct the situation yet? I know this is a rough way to learn not to co-sign for anyone.

Re: Regretting auto loan!

Goodscore81 — Fri, 30 Aug 2013 20:01:42 GMT

I have not resolved this problem yet, but hopefully I can wash my hands of it soon!!! I have learned my lesson, but I just hate saying no to a family member if I have the means to help.

Re: Regretting auto loan!

StartingOver10 — Sun, 01 Sep 2013 19:01:49 GMT

@Goodscore81 wrote:
I have not resolved this problem yet, but hopefully I can wash my hands of it soon!!! I have learned my lesson, but I just hate saying no to a family member if I have the means to help.

This may sound harsh to you: IMO, your heart is in the right place, but sometimes the best help you can give a friend/family member is "NO".

It may seem contradictory, but if you say 'no' it might be the final thing that gets the friend/family member to review their own financials and decide to fix what needs fixing. That would really help them to get out of their situation.

I know it's too late for you now because you have already co-signed. But, for others, don't risk your credit for anyone else by co-signing. If you do go down this road, then have that person pay you directly and you pay the creditor. That way you know when your friend/family member is even one day late so your credit won't be hurt. For the OP, try to get out of this loan asap. The quicker you can get yourself off the loan (by your friend/family member refinancing into their own name) the better for you.

Re: Regretting auto loan!

Anonymous — Sun, 01 Sep 2013 19:06:18 GMT

I learned the hard way to say no.

I co-signed an auto loan for a family member and it was repossessed within 6 months. On my CR and they came after me and not the family member.

Never again will I do this.