Unable to keep car payment, should I contact the bank?Due to job loss, I am unable to continue my car payment. I have thought about contacting the bank and discussing the situation, but I have heard that it is NOT the best thing to do. Reason is because in this current situation, the bank just repossess my car, sell it at virtually nothing, then come after me for the... |
After I had my second child, I was at a point where I could no longer afford my car payment or the ridiculously high full coverage insurance. I took it back to the dealership where I purchased it and "sold it back to them" (in other words, gave them about $400 - I was upside down on the loan).
I began driving an older car that was given to me. The insurance was low and I was saving about $450/ mo. New cars are no bargain. Furthermore, I liked the older car so much better! I have never regretted selling my car back to the dealership. I only wish I had contacted them sooner.
Good luck to you. You will make a responsible decision and save your credit which is so, so important. Try getting a job, or anything else without decent credit.
HUH? Did I miss something on your configuring the amounts you owe on the car? If you owe 30K you owe 30K and have to pay that amount (I don't understand the 5K you are talking about) Perhaps they will drop the payments to a lower amount that you can manage. RUN find a job asap! No bank will takeover the car for you, they will take it back if you don't meet the payments. Banks are not in business to help the folks they loan money to, but to make money. Same with bank accounts, they use your money to make more money for themselves.
OR to try and save your credit score/s put the car up for sale for the price you owe on it..sell as "take over payments" that will get you out from under what you owe the bank and spare your credit.
WOW what i just read, not everyone is up to date in the car market. The car is only worth what is will bring at auction first off.
You think is it worth 25K but the car will only bring say 15 to 18K (that's right) how do you think they make profit when one week "A" car is on sale for 20K and next week it is in the paper 17k.
So you can't do the payment here is now what is going on in the industries. They now take it to court and garnish you income to pay back the balance. And if they have to pay some one to find it that fee is also added as well as.
Long story short try to short sale the car like one of you inputs said or just give it back and wait for the other shoe to drop that could take 3 years or so.
It makes no difference if you Give them the car or they Take the car
they're going to auction it off and you owe them the difference
and your credit rating will suffer.
They are not going to hold the car and hope someone will give them 25K for it, You contracted to pay the $30K.
If you can't pay it when due you still owe it to them.
Otherwise they would have a gigantic parking lot full of cars they can't sell.
Your best bet would be try and sell it yourself.
Maybe YOU can get the 25K for it,
Depending upon what bank you are using, is how they will help you. Your going to have to tell them either way, but make sure you tell them you are looking for a job and only hope to be out of car payments for a few months. If your thinking your gonna be out longer than that on car payments they will usually take away your car. With today's economy the bank may not be willing to wait a month or two, but there's nothing you can do. Try and keep communication with them and get a job. I hope it works out for you.
