Voluntary repossession

[Anonymous]

I had this same scenario come up.. although repossession wasnt an option! I was 5k under on a 2013 car. But wanted a new vehicle. Didnt wanna take the negative equity so I just did a 5k downpayment. Although if I didnt have the money, I would have loaded it on the backend and just paid more. Those are your best option credit wise. Voluntary repossession effects your entire credit score not just Auto. I would advise against it.

[Anonymous]

Thank you everyone for your comments. I'm keeping the car for the time being.

[lincar66]

Don't let your car be repossessed I had it happen to me not by choice I got a huge check 3 days after the car sold at auction.

Now the only negative on my report is that and because I have 7600$ deficiency balance I'm not poking the bear

[StartingOver10]

---

@lincar66 wrote:
Don't let your car be repossessed I had it happen to me not by choice I got a huge check 3 days after the car sold at auction.

Now the only negative on my report is that and because I have 7600$ deficiency balance I'm not poking the bear

---

^^^How did you get a check from a repo?  I am very curious.

Normally you only get a check if the vehicle is sold for more than what you owe and after they take out fees, the lender sends you the difference.  But then there is no deficiency. 

So how did you get both a deficiency judgement for $7600 + a huge check 3 days after the car was sold?  

[Anonymous]

---

@Pharoe33 wrote:

Why not trade for a newer vechcle that has a rebate or other nice incentives. Often times some deals out there can eat up a great deal of the negative equity.

---

Those kind of deals don't really 'eat' up any negative equity.  The negative equity is still there and why large rebates may negate how much down payment you need it is really helping you out at all.  If a car has an MSRP of $40K and has rebates that allow it to be sold for $33K, the value of the car is now $$33K and going lower all the time.  So if you add $7K negative equity to the same price to get the loan approved and lower your DP, you still have just transferred the negative equity from one vehicle to the other.  It didn't just disappear.

[Dj4Money]

 I will concour with the others here.

 Roll that negative into the next car loan. Get big incentives and buy before your next payment so you can use that additional money for downpayment. Ford has monster incentives on hybrids and electric cars.

 If you can find the last of the '15 Hyundai Elantra you can get deep discounts and rebates on it. 

 The negative doesn't disapear but it can be swallowed up with down and incentives. Incentives are free money from the auto makers, you don't have to put it down on the car, you can opt for a check in the mail in about 15-20 days after purchase.

 Work on the price of your new car, the closer you pay to MSRP the worse off you are.