@lola52 wrote:
Hello.
I have a auto loan of $5000 on a car worth about maybe 5k.
The car's transmission went out and everywhere ive been says its about $3-4000 to fix, ive already put 4k into fixing it.
i dont have the money to pay off the loan and dont want to fix it.
I have bad credit so i cant get a loan at all (besides road loans) and im not looking into that route..
anyone have any ideas? I dont want to keep making payments on it and im not driving it.
Well, the value of a car and the loan on it are two different things. The condition of the car effects value to some extent. Having a working transmission is important to its value.
Are you taking the vehicle to legitimate type transmission shops for the repair estimate or back to the dealer where you purchased it? If you are going back to the dealer where you purchased it, then the price they have given you may be too high (because that is what those small lots have a tendency to do).
Go to a legitimate mechanic and get a price to change out the transmission. Maybe two or three good mechanics.
It's really hard to sell a vehicle that isn't working if you don't have the cash to pay off the current lien on it. If you let it get repo'ed you are in worse shape.
There are some places that will take your vehicle as a trade even if it doesn't work and add the negative equity onto your new auto loan. You have to be extremely careful though because it would put you immediately $5k or more upside down on the new purchase right from the get go.
You would be better off fixing the vehicle and driving it until you pay off the loan and you get on your feet if at all possible. That way you will be able to show a recent paid off vehicle loan for the next purchase. I am assuming all of your payments have been made ontime.
Have you visted the rebuilding section here to see what you can do to improve your scores? Sometimes it is easier than you think with just a few changes (sometimes not).
