Finance Company Won't Wait Any Longer For Payment

**Jen3029** · 08-25-2007, 10:03 PM

Okay, I purchased a brand new car less then 1 year ago, this past May I lost my Job, and my Husband was out of work on a medical and was only receiving 60% pay, I am now collecting unemployment, and my husband goes back to work tommorow. My car payment is 83 days late, I explained to the finance company that I will be able to make the payment in Full on September 14th, they told me that they have no choice but to reposses the vehicle or I can voluntarily surrender the car. I told them that I would voluntarily surrender the car and turn it into the dealership on Monday. I know that they will auction off the car and sell it for alot less then what I owe, leaving me with a large debt and NO vehicle, question, should I hide the car and make the full payment on September 14th? And if I do so, can they still reposess the car even though I have come current with my payments??? Please advise!!! I don't want to pay for something I don't I can't use and thats exactly what will happen if they take possesion of the vehicle.

**Jen3029** · 08-25-2007, 10:58 PM

Also I forgot to mention that when I financed the car that I also added an extended warranty, if they reposses the vehicle do I have a right to cancel the extended warranty?

**Mr. Knowitall** · 08-26-2007, 08:08 AM

Quoting Jen3029

told them that I would voluntarily surrender the car and turn it into the dealership on Monday. I know that they will auction off the car and sell it for alot less then what I owe, leaving me with a large debt and NO vehicle, question, should I hide the car and make the full payment on September 14th? And if I do so, can they still reposess the car even though I have come current with my payments???

Once you default on your duties under the loan contract, they don't have to give you another chance. They can repossess the car. Given the extent of your default, I will be surprised if they will agree to let you keep the car unless you pay off your entire loan balance (plus any penalties provided for in the loan contract).

In some states, intentionally hiding a vehicle from repossession is a criminal offense.

Quoting Jen3029

Also I forgot to mention that when I financed the car that I also added an extended warranty, if they reposses the vehicle do I have a right to cancel the extended warranty?

That will depend on the warranty. If you purchased the warranty in advance and are simply paying off the warranty along with the car, and there is no provision for proration in the contract for the warranty, you may not be able to avoid paying that balance. If the warranty is subject to proration, you should be able to cancel the remainder (or that might follow from your default).

**Jen3029** · 08-28-2007, 11:52 AM

Thanks for your help, I don't plan on hiding the vehicle, but do you know if it makes a difference credit wise if I surender it at a dealership as opposed to having the finance company send a tow truck and pick it up? From what I understand there is still a repossesion fee, but would it look better on my credit or at this point does it even matter? Thanks again!