OneMain Financial wants to put a lien on my car...

[Anonymous]

I just checked wish Lending Club and Sofi. Neither one approved a personal loan for $5k. I have a Ch 7 BK from Feb 2019 on record so even though my income is healthy and my debt:income below 20% it really doesn't matter. My FICO scores are all over 720, but I have no established credit since the BK. I have to sell the car. It will be cleaned up tomorrow and posted for sale online before the end of the week. 

[DONZI]

Hi @Anonymous

Hmm. Do you foresee the ability to stay afloat next month and thereafter, if this month's living expenses were paid?

...with the car, effectively getting caught up?

If so, maybe you could appeal to trusted individuals for a informal loan on the car using it as collateral if they want.

..or if the expenses are burdened with extraordinary non-living expenses and it will take a bit more cushion to level out the money problem and selling the car seems like the only way out -- a private party sale I'd imagine would be the most lucrative. Again, maybe look to known individuals -- never know, perhaps someone you know and trust has car problems.

Crunch the numbers yourself or with someone you respect and get a dollar figure so you can present this dilemma quickly and simply to people that you are comfortable sharing your needs with. With a figure, people will have enough information to ponder the choice/option to help you in real-time.

Talk with any people who will be expecting money from you, now, if you have not already.. and have the dollar amount which can solve this immediate crisis crunched already so you're able to instill confidence to all parties you discuss this setback with.

Survey what other items that you could part with permanently or temporarily (collateral with know parties or maybe pawnshops) -- depending on the dollar amount derived to ride out this month, it could be some other items besides or in addition to the car could help too.

Reach out to the local community too - VFW, Church, Salvation Army and similar. Some may have websites also for crowd funding critical situations despite the cause and without judgement.

..back to the car, maybe someone or some organization has a predicament where temporary use of your car would be valuable to them and you.

EDIT: ah, I see you'd requested $5k -- does that represent a round number maybe more than it does a bottom line accurate number to save the day(month)?   ..I imagine that even $4399 to a professional lender may tip the scales Vs $5000 looking at the oddball figures I have gotten on credit card spending limits.

[Anonymous]

Hi DONZI,

That's a great point! I hadn't considered that, but yes, it's an overestimated figure that I know would keep us in the black with enough going into February to totally bounce back from this. 

I sat down with our neighbor (a very dear friend of mine) who helped me create a new budget. He's very savvy with his finances. He offered to loan a generous sum in one week from today, which is also when I receive my SSDI. That will cover the red enough to put us back at a $0 balance. If I can push the rest of the bills to the final week of Jan, when the VA income is deposited, we could get by on what food we have and still put the car on the market this week. 

The car needs a front-end alignment and new windshield wipers. I cannot afford those things at this time. Do I need to have them repaired prior to putting it up for sale? I hate to sell it out of alignment. 

I checked KBB and the private party value has decreased by about $2k since I last checked about 5-6 weeks ago. Is this a downward trend? It was disappointing for sure. 

[DONZI]

I don't know what an alignment would cost these days. But as long as you inform any potential buyer and make some price adjustment (say -$150 from the selling price) they would understand.

Is KBB trying to factor local auto markets?  I'd sure compare with any local auto-trader mags or other, that should be reasonable fingers on the local auto market pulse.

My mother drove a Honda wagon for 20 years, has low miles and is in great shape, always garage kept.. Blue book value is ridiculous. It's work more than blue book as scrap.

I don't think there is ample autos for sale yet, so maybe it's just that gas prices are up or some other factor(s).

You can always price it high(er) than estimates and add "or best offer" -- might also help deal with multiple interested parties.

[Anonymous]

I wish you the best in your situation and hope that you are able to achieve a quick resolution.

You can have a second lien placed on a car. If that were to occur, OneMain would be second in line to recover as the secondary lienholder, but this is possible. They would simply file the paperwork with your states DMV to have this recorded on the title. The primary bank would not be harmed as they are still the first lienholder and would owe any overage of recoverable amount to the second lienholder if a recovery and sale had to be initiated.

[805orbust]

Go to Carmax.com and check the value. They will cut you a check and payoff your car.  I did it myself several weeks ago with a 2020 Accord that I bought new in May of 2020. I got paid $3000 over what purchased it for.

Worth a shot as Subies are popular cars.

[Anonymous]

Hi 805orbust,

Took a shot as you suggested, but their offer was about $3k below what I owe on it since I just refinanced it with equity. I want to get at least what I owe at $18,400, but prefer to ask for $20k on account of its condition and low mileage. Not to mention its a 2014 and is better built than the newer models. 

[Anonymous]

Hello Ford_Man,

Thank you so much for this info. I had no idea how it worked. I figured there must be a way they can do it, but I'm not sure using my vehicle as collateral is wise since I'm not very good at controlling my finances. I worry I won't be able to pay it back within the time frame or that I'll somehow default on it. I just don't trust myself not to screw it up. 

[Lou-natic]

I don't think selling your car is going to help much if at all. Future you is going to want to kick your past self for doing it. There has got to be a better idea.

Also if you haven't already get your foot in the door at Navy Federal Credit Union.