upside down car loan

[huntersmom40]

Hi, on 4/5/06 I purchased a 2002 Nissan Xterra. The original loan amount was 18,438.03 and the original loan date was 4/5/06. My interest rate was 19.29% with household bank auto loans. My payoff quote as of today is 14,616.18. I have not even paid 4,000 of the principal of this loan. I went to trade it in yesterday. It has 90,000 miles and I was only offered 3,500.00 trade-in value, but owe almost 3 times that much. Is there any law that protects me here? I know it is my fault for buying it in the first place but I think I have really been taken advantage of.

Also, I can no longer afford to put gas in this vehicle nor the payments of close to 500.00 per month. I drive 25 miles one way to work and fill up twice per week. I also would like to know since I cannot get rid of this vehicle, I would like to turn it in as a voluntary repossession. Do you have any advice on whether I should voluntarily turn it in or let them come and get it. I have tried refinancing it, trading it, selling it out right, but I do not have the deficit to pay off the loan.

Thanks,
Help Me Please!

 

[Michael Wechsler]

There is no law that protects you for making a deal that ends up as a bad one. If you go the route of repossession it's even worse. You will get charged for picking up the vehicle and selling it, etc. You're almost always best off getting rid of it yourself. At this point your problem is financial and you need to do what you can to work out refinancing. I'm sorry to hear about your problem and wish you the best of luck.

 

[huntersmom40]

Thank you. I just have several other questions?

So what happens if they do reposess it and I do not pay any of those cost to them? Will they put a judgement on my credit report? Will I go to jail? Garnish my wages, lien my property? Besides ruining my credit, I guess I am asking what will happen to me if I do turn this car in?

 

[JohnMacek]

if they repossess and the amount your vehicle fails to sell for equal to or greater than what you owe, you will owe the difference. thay can sue you and garnish you wages, attach property (personal or real) and "ruin" your credit. judgments can be renewable indefinitely, depending on the state.