Voluntary Repossession?

[ndmdl3]

My credit is poor so a trade in is not an option since when I have spoken with several dealerships that will require between $2-4K down payment. Capital One Auto loan, $18K balance, at best the car is worth $14K and at worst $10K. Car payment is $640.94 with 23% interest rate. Oh also its a 2009 Chevy Traverse. I have not tried selling it because I would not be able to get a personal loan to pay the difference. I personally don't think it will make much difference to my credit if I voluntarily surrender the car but I need some advice before I even attempt this. Yes I would need a car but I can drive my brother's car in the meantime as he is a truck driver and is only home sporadically. And yes this is a very big drain on my finances when my car payment is way more than my house payment. My house payment is only $462. But between these two debts its becoming increasingly difficult to just maintain. 

[Anonymous]

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@ndmdl3 wrote:

My credit is poor so a trade in is not an option since when I have spoken with several dealerships that will require between $2-4K down payment. Capital One Auto loan, $18K balance, at best the car is worth $14K and at worst $10K. Car payment is $640.94 with 23% interest rate. Oh also its a 2009 Chevy Traverse. I have not tried selling it because I would not be able to get a personal loan to pay the difference. I personally don't think it will make much difference to my credit if I voluntarily surrender the car but I need some advice before I even attempt this. Yes I would need a car but I can drive my brother's car in the meantime as he is a truck driver and is only home sporadically. And yes this is a very big drain on my finances when my car payment is way more than my house payment. My house payment is only $462. But between these two debts its becoming increasingly difficult to just maintain. 

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Keep in mind that once they repo the car, it will be sold at an auction,, the lender will then charge you for the difference between the loan amount and the amount your car was auctioned for. Plus they always add repo fees, auction fees, etc.

[ndmdl3]

Ugh...still don't know what to do...

[Creditaddict]

I have gone through a couple Voluntary Repo's.

If you do it before you are behind on it, it helps because once you turn it in everything freezes while it's handled.

it takes at least 2 months to be sold usually because they have to send notice of payment in full to get the card back and give you 15-30 days to make that payment and get the car back and then they send to auction and of course then have to send out a notice with what it was sold for, what you owed, what that difference now is and the fees for selling it at auction and give you time to pay that.

If you fail to pay that then it will start reporting to your credit again as a voluntary repo with negative balance.

If you could come up with some cash at some point, good chance you could settle it for 50% or less of the new balance.

otherwise, if your credit is really in the 500's than your right it's not going to do much to your score, will just be a negative that hopefully you can take care of at some point down the road. chances of them actually spending the money to go to court to get a judgement are probably less than 50%

[StartingOver10]

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@ndmdl3 wrote:

My credit is poor so a trade in is not an option since when I have spoken with several dealerships that will require between $2-4K down payment. Capital One Auto loan, $18K balance, at best the car is worth $14K and at worst $10K. Car payment is $640.94 with 23% interest rate. Oh also its a 2009 Chevy Traverse. I have not tried selling it because I would not be able to get a personal loan to pay the difference. I personally don't think it will make much difference to my credit if I voluntarily surrender the car but I need some advice before I even attempt this. Yes I would need a car but I can drive my brother's car in the meantime as he is a truck driver and is only home sporadically. And yes this is a very big drain on my finances when my car payment is way more than my house payment. My house payment is only $462. But between these two debts its becoming increasingly difficult to just maintain. 

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There is not enough info in your post to give you any helpful advice.

What is your monthly income? Is it possible to pick up a second job or sell things around the house to get the funds together so you can pay off the part that is upside down? That way you could either refi it to a lower rate or take it to CarMax and sell it to them.

All you need is an additional income for a short while until you can sell the vehicle. I would hate for you to go through a repo and get a judgment and have to pay it and not have the vehicle.

Do you know what is holding down your score? Do you have credit card accounts or just the auto loan and house mortgage?

[ndmdl3]

So I have decided not to voluntarily surrender my car. But to answer your questions I do have a second job but they are not working me enough to even put a dent in any bill I have. Most of what is holding my scores down are collections and I am working on those. I have a house but it's not exactly a mortgage. I own the house free and clear. It gas no liens. My dad helped me buy the house but I am paying on a shared coverage loan for the money borrowed from a local credit union.

[ndmdl3]

The decision mainly not to because the loan will mature in early 2018 and I set up a payment plan with Capital One. One step at a time.

[StartingOver10]

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@ndmdl3 wrote:
The decision mainly not to because the loan will mature in early 2018 and I set up a payment plan with Capital One. One step at a time.

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Wise choice. You are looking out for yourself in the long run. It is hard to go through these rough times, but if you can find another source of income for the short term (rent income or sell items around the house) it will be better for you for two reasons: 

• your credit will be much better
• next time you buy a vehicle or anything else, you will be double and triple checking your resources before signing on the dotted line. That is a good thing IMO.