Choosing Voluntary Turn-In or Repossession

[needtogetrich]

I bought a car from 'RipYouOffTIME' over a year ago... I've made all my payments on time (sometimes 5-10 days late here and there, but never missed a month). At this time in my life I can no longer afford the vehicle, (never really could "afford" it, I just made the $455 a month payments and BARELY got by). I was discharged from the Military; and with what I make at my current job, I just don't have the money to make the payments anymore. I'd like to try to sell the car (I might get half of what I owe on it). Or just voluntary turn it in. What happends when you do that? What are my other options? If re-po'ed or tunrned in... how much/often will I have to make payments on the car? What I'm saying is.. right now my payments are $455 a month.. will they be less after the car is re-po'ed? That's my main question. I'd like to hear from other people who have gone through this, or who have dealt with "DriveSLIME" before. Thanks in advance.
-Need to get Rich

Edit: this is in Florida!

[Mr. Knowitall]

If you let the car be repossessed or try to turn it in, the lender will normally auction the car (resulting in the lowest possible sales price), then collect from you the difference between the sales price and what you owe (probably with additional charges for the repossession and the cost of the sale). They will demand a 100% payoff, not a continuation of your payments. Either way, repo or turning it in, you will get a significant negative entry on your credit.

If you really can't afford the car, your best approach is normally to sell it for the most you can get, then pay off the loan, making up the difference out-of-pocket.

[jk]

Mr. K has it down but realize that to sell the car, you will have to payoff the car at the time of title transfer since there most assuredly is a lein on the title and would have to be removed for the title to transfer.

That all means, cash out of pocket at the time of the sale to cover the remainder of the loan.

[ggauf]

If you let the car be repossessed or try to turn it in, the lender will normally auction the car (resulting in the lowest possible sales price), then collect from you the difference between the sales price and what you owe (probably with additional charges for the repossession and the cost of the sale). They will demand a 100% payoff, not a continuation of your payments. Either way, repo or turning it in, you will get a significant negative entry on your credit.

If you really can't afford the car, your best approach is normally to sell it for the most you can get, then pay off the loan, making up the difference out-of-pocket.

A few things....if you do a vol. repo you will take a hit on your credit report, but that's just one thing. They will sell it off at auction either public (which means it will sell for way less then fair market) or private (wholesale-dealers only type which will bring close to kelly wholesale depending on car's condition etc). You will be responsible for the remainder plus repo costs. While they will most likely demand 100% payoff it's not too uncommon for them to set up a payment plan with you for the remainder balance, if they don't and you can't pay they will sue you for the remainder and then you can really end up paying much much much more......your better off vol. repo then just letting them do it on their own, that way you can be there to "hand the key's over" and make sure they do a proper inspection of the vehicle and ask to be provided a copy for your records. Make sure that any agreement you have on this route is put in writting for your own protection...thusly if they promise to sell it off at specifically "fair market value" then you have it in writting and not just a verbal (alot of times they will say this but not mean it) so you have some recourse if they sell it off for less then what they promise....but keep in mind condition of the vehicle is critical in these situations.

also, since you said you were just discharged from the military there may be some laws to help you out and make it easier, but I'm not positive on that one.....

another plan could be to trade the car in on another that with the negative equity rolled in would cost less monthly, just another thought for you. Since your not "behind" on payments yet you do have some wiggle room but don't toy around with it too much.

[needtogetrich]

Thanks a lot guys... that helps! Yeah I know they will sell it and I'll pay the difference. My main concern is the monthly payments after that happens. I just can't afford to pay $455 a month...even my rent is ($5) less than that! My credit is already jacked (b/c of this car, fell behind in credit cards, student loans, ect).. so yes, a re-po would hurt, but the damage is already done.

I don't have $k sitting around to pay off the remainder of the loan if I were to sell the car... so that option is out. My only other option sounds like getting a trade-in on a cheaper car and hope the payments will be less.

Ya know, I was on my way to getting out of debt. I was making good money in the miltary. With "ok" credit (at the time), I needed a car of my own, but NO one would finace me! or put me in anything without a mega down payment!.. no military buyers program, no discount on down payment, nothing! Yeah, your welcome for serving my country! So I resorted to DriveSLIME (note: Do NOT buy from Drive Time!!), with thier +20% IR's. I should not have bought from them.. but what else was I supposed to do? I had tried everything! Oh well, lesson learned... and It's made me a wiser person. Why are all the scam artists in business; raking in the dough, and all the good, hard working people struggling!?? sorry... just venting

-Need to get rich

[kiwibaby]

I am currently in a situation with DT in Florida right now and would be curious to know how it turned out with your ordeal last year with them. Hoping you're still an active member of this forum and checking it periodically.
The DT manager told me yesterday that the car (though it has only 4k more miles on it than when purchased) and is in the exact same condition as then. (I don't drive alot and my work is very close to home.) She stated that it WILL be sold at auction and not returned to the lot. She said it could sell as little as $2,000 and I will have a nasty credit report (expected), they can put a lien on my property (I don't have any right now), AND can garnish my wages for the full price that I had agreed to!
My hands are tied and I'm paying just under $200 every 2 weeks! I WAS making great $, then I was laid off and could only find something else paying a moderate wage. I like my current job and have lots of advancement opportunities in the near future. I'm snagging as much over time as I possibly can. But it's still not enough. I will happily surrender the car to them, IF I'm not going to be stuck paying almost as much as if I was to keep it!
Can they actually garnish your wages for this???
Any help would be greatly appreciated!
Thanks :-)

[CaliforniaMom]

First, you really shouldn't hijack someone else's thread. There's a better possibility that someone would answer your question if it wasn't attached to a year old thread...however

Yes, they can and probably will sue you and that will result in a judgment. Once they get the judgment, they can and probably will garnish your wages.

What gets me about these posts are these comments:

but NO one would finace me! or put me in anything without a mega down payment!.. no military buyers program, no discount on down payment, nothing! Yeah, your welcome for serving my country!

You two have already shown yourself financially irresponsible and you want someone else to take the risk of loaning you MORE money without a significant interest rate??? You can't be serious.

As for kiwibaby.. did you happen to check the blue book value on the car BEFORE you purchased it? You'll probably find that it wasn't worth much when you bought it, therefore even with only 4K miles used, it's worth even less. They are called predatory lenders for a reason... but you guys continually use them because they are your only options...

Sorry you lost your job, but that isn't their problem. You signed an agreement to pay them back the money you borrowed and they will hold you to it.

[kiwibaby]

First, if you would read my very first couple of lines, it was directed to the person who made this thread originally in hopes of them still being active. So, I was not 'hijacking' anyones thread.
Second, I have proven myself as 'divorced', not irresponsible with money. Divorce seems to kill your credit! Amazing, your spouse turns out to be a very good liar and a drug addict and you get rid of them and suddenly you're labeled as bad person! Go figure...
Third, the car was about 1k over blue book so it wasn't that bad. The interest rates are horrid, but I knew that. At the time I purchased the car, I was told that as long as the vehicle has less than 60k miles, it can go on the lot. Nothing over that. I have no problem with paying on a loan I agreed to. I do have a problem with them selling the car at auction for 1/5th of it's blue book value then holding me responsible for the remaining part.
I expect to have to pay for a reasonable difference, NOT an extreme amount as they have threatened.

[aaron]

There's no need to argue about "hijacking". Simply put, comments or queries regarding an existing thread are properly placed in the existing thread. Inquiries about separate situations are best placed in a new thread.