Voluntary repossession?

[sem3578]

I am thinking of letting me car be reposessed. How much will it hurt my credit? I can't afford my monthly payment and am behind $1600.00. My dealership says they can get me a car loan on a less expensive used car with a co-signer and then to have my current vehicle repossessed. They said once I start making regular payments on the new auto loan, then my credit will bounce right back beyond the repo. Is this true?

Is this something I should look into doing or is it a dumb idea? My current vehicle is a 2005 Dodge Neon and they dont make them anymore so the trade in value (even with my car in perfect condtion) is only 1/2 of what I still owe on it. What are your thoughts?

I'm also wondering if I could refinance my car loan. Maybe that would get me a lower payment (even if a few dollars) and stop the reposession?

[blueprairie]

You need to check with a qualified credit counsellor; however, I would be leery of someone promising your credit will bounce right back. Sure, you'll be able to get credit but it will cost you more than it will cost someone with a clean record. It sounds as if the dealership is simply trying to get their money back out of you any way they can.

[pdudenhefer]

The repo will be on your credit report for 7-10 years unless you are able to dispute it and get it removed. Doesnt make a difference what they say -a repo is a repo.

[roy40372]

I never had it happen but i have seen some people do it and end up still owing money. In some states if you get repoed the dealer sells the car. If it does not bring enouigh to pay it off them you're responsible for the balance. You better check this. Also a repo will definitely do damage to your credit rating.

[mia2kl2002]

OK, have had/seen some experience with this, and I can tell you that it will cost you more to have it repossessed than it does to pay for it. They charge several hundred dollars ON TOP of what you owe to cover their cost for paying those rats who come to your house in the middle of the night and basically steal your car and take it to the bank. The bank doesn't want your car, and they don't want to fool around selling it, either. They will sell it for whatever they can get, as quickly as possible and then YOU will STILL owe them for the balance, up to the amount of your debt to them.

It will hurt your credit of COURSE! Who is going to be fool enough to loan any money for anything, to somebody who flat didn't make their car payments. You just need to sit tight, we've all been there before. Once you get it about half paid-off, you will be in a better position to sell it, or whatever you want to do. Next time, remember this, and buy something less expensive, so you can EASILY afford the payments + insurance + whatever else you like to spend money on.

[Boricua]

If you have your car repossessed, that will lower your credit score, very low. For them to tell you that they will give you another car with payments that you can afford, it is also and untruth. You see since your credit score will be low, they can give you another loan but the interest will be double of what you are paying now. So in the long run, you will be paying more for that car than what it is worth. You can talk to the bank and see if they can give you an extension for your payment, usually they can give you at least two months to try to recoup. The extension will cost you about maybe 70 to 100$'s if Iam not mistaken. I don't know how many months you are behind but repo starts right after 90 days of being late. Try your darnest to work something out before they repo your car. Borrow the money from family members do anything you can. The repo will stay with you for 7 years. Don't listen to what they are telling you, It is all false. Also for your information if you have the money in the bank, the bank can take it without your permission, because this has been mentioned to you before, even if you did not hear.p.s. giving your car voluntarily or not is the same thing.***another option hurry and file for bankcruptcy and the car stays with you, remember to put the car in the bankcruptcy with your other debtors.**that is an excellent option, to refinance..a great option, this will not harm your credit at all, you might have to have someone sign with you on this, though..ok I hope I have helped you.Collections dept, for vechiles at Chase Bank

[nature4me]

Bad idea -if you have a co-signer then you should get a new loan in order to lower your payments and catch up the arrears.It sounds like you have a good economical car ,why send it back in order to take on a older cheaper car ?In the end on a repo they will come after you for the difference between the value and what you owe...also a repo will stay on your credit report for 7 years , yes you can slowly improve your credit however your credit score will go down the tubes.If you must send it back ...volunteer it ( there is a difference on your credit bureau .Good luck !Ps try not to destroy your credit over 1600 -you will regret it.

[simpleheart]

A friend of mine let her car get repossed a few years ago and she said that since that has happened she cannot get any type of credit whatsoever. Both cars that she has she had to but at a buy her pay here and she couldn't get a apartment in her name. She has had a lot of problems since then, She is now paying the car off plus the interest so she can buy a home . S o I wouldn't recommend it. As for the car if you are financed through Chrystler they will give you a bunch of bull over it too. I have had 2 neons and both financed through them and with each late payment that i had they charged an outrageous ballon payment the ended up with me having to pay an extra 8 months on the deal. With my new car i went through a completely different loan company just to keep away from chrystler because I only like Dodge vehicles.

[Dirtydog]

If the car is repossessed it will appear on your credit report for up to 7 years. It will have a negative affect on you ability to get a new loan for another car, hence the need for a co-signer. It will me you will pay a higher interest rate on most future loans.Try looking at selling the car privately. Trading it to a dealer will often cost you as much as 30% of the value. If you do sell it privately you will have to discuss it with whom ever you owe the loan on it to.If you want to fix your problem and clean up your credit score you would be better off to borrow the $1,600 from someone and bring the overdue balance up to date. The late payments would still have a negative affect. As the car is newer you would be better of with it than a clunker and maintaining timely payments over say a year should put your credit score on the mend.I am not trying to be mean only practical with the following; the payments on a Neon cannot be significant and if you cannot afford them you probably should not own a car. Remember the older the car the more repairs. The bigger the motor the more fuel.Never get financing through the dealer or private brokers try to stick with the bank.

[Process Guy]

If your car is reposessed, you will still owe the money that you are past due. In addition, the bank will sell your auto at auction for much less than you owe. You will be responsible for the difference of what you owe on your loan and what they sold the car for.Refinancing the loan sounds like the much better option.