Need Advice on my new car purchase...

Heatherdd

Heatherdd

New Member
Jurisdiction
North Carolina
I recently financed a new car. I didn't have to pay anything to leave the dealership, I got a loan. Unfortunately , I can not afford my car. I thought I could at the time I guess because I was just so happy that I was actually able to get one ( my credit was 0 ). My car payment is $454 a month and I have to pay another $200 for insurance. I have the taxes coming up at the end of this month which is another 200$. I've only had it long enough to make one payment, which was 10 days past due.

Basically, I want to know if there's anything I could possibly do to get out of this. I can not pay off the remainder of the loan because well it would be all of it since I've only had it for about 2 months. Could I sell it to a dealership or even a private party? If so, how? I'm just financially drained right now and there is no way I will be able to continue payments. I have even considered a voluntary surrender ( instead of it getting repossessed). Can anyone please help me?

Thank you.
 
You can sell it to anyone as long as you can sell it for enough to pay off the loan balance. If not then your only choice is to do a voluntary surrender. Do NOT allow someone else to take over payments. You cannot transfer the title out of your name until the entire loan balance is paid off.
 
Yes, you can try to sell the vehicle, but there is no magic way out of the situation. You are responsible for payments as long a the car is yours.
A dealer will not buy it for what you owe. You will lose money and still owe a portion of the loan. If you can find a private buyer willing to purchase for the remaining balance then you could escape this. Finding this type of buyer will be tough.
 
Ugh. Im stuck. I would never be able to pay off whatever is left after selling. My loan was 19000 and the value on my car is 11 to 12000.
 
Yes you are stuck. Even with a voluntary surrender or repossession they will attempt to collect the balance from you. If you purchased any additional products such as credit life, disability or extended warranty, you can cancel those products and reduce your balance a little bit. Although if the vehicle is used, carefully think about the warranty.
 
Heatherdd said:
I recently financed a new car. I didn't have to pay anything to leave the dealership, I got a loan. Unfortunately , I can not afford my car. I thought I could at the time I guess because I was just so happy that I was actually able to get one ( my credit was 0 ). My car payment is $454 a month and I have to pay another $200 for insurance. I have the taxes coming up at the end of this month which is another 200$. I've only had it long enough to make one payment, which was 10 days past due.

Basically, I want to know if there's anything I could possibly do to get out of this. I can not pay off the remainder of the loan because well it would be all of it since I've only had it for about 2 months. Could I sell it to a dealership or even a private party? If so, how? I'm just financially drained right now and there is no way I will be able to continue payments. I have even considered a voluntary surrender ( instead of it getting repossessed). Can anyone please help me?

Thank you.
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Had you not made the first payment and it was before that payment was due, YES, you could have returned the car.

Don't bank on it being easy, because it isn't.

Okay, that isn't your remedy.

If your debts are more then your income, you might be a person that could file a chapter 7 bankruptcy.

It can't hurt to discuss your situation with a couple bankruptcy attorneys in your county.

There are many benefits a BK could bring you, such as once you've filed the BK, you can keep the car for another 90 to 120 days.

During that time, you won't be required to make payments, and once the BK has been discharged, you might have another 30-60 days before the lender sends someone to take back the car.

That, by the way, won't count as a "repo".

I'll let the lawyers you discuss your finances with explain the other advantages for people, but the first visit with the lawyer is without charge.

Good luck.
 
"Had you not made the first payment and it was before that payment was due, YES, you could have returned the car." How?
 
txls said:
"Had you not made the first payment and it was before that payment was due, YES, you could have returned the car." How?
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In many finance contracts, the dealer is a silent co-signer (guarantor, if you will).

The ramifications of that arrangement are many, including that which I posited.
 
txls said:
If you're referring to "with recourse" in my experience it's extremely rare.
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No the "with recourse" clause was not what I was referencing.

It doesn't apply in the OP's case anyway, as she has already made the first payment.
 

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