Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I would drive the vehicle back to the dealership and leave it with them. Is there a way to return a lease like this situation? Car maker gets vehicle back early, then it can sell it for more then it could when lease ends. Then send a bill to OP for price differences. Isn't there a lease swap where you can find someone to take over the lease?
The worst thing that will happen is you'll get the vehicle reposed, and your credit scores will drop. I doubt if they will go to the trouble to garnish (court order) your wages if they get the vehicle back. They would know you're dire situation is not worth them wasting money to pursue a dead horse. You might get some hassling phone calls, just ignore them.
I have been a long time lurker, just reading citydata before making my Atlanta to Florida trip helped amazingly.
Sorry, I'm desperate here. I lost my job 2 months ago, my car is going to be recovered /repo'd any day. It is a new Altima, 2016. The car was $31K and the lease is almost half, $15k.
Nissan knows my situation, they don't care.
I have two sons and I can't pay this car, I could, but that would mean making my sons starve, screw that.
I am working off the books at my old job, I'm a bouncer.
My question is what can they do to me legally. Can they arrest me for owing 15 thousand and not paying, or do they send me letters in collections? My credit is already bad, it's 670, not good.
When I get another job can they garnish my pay, or keep my property? Sorry I'm desperate I only had the car a short bit.
Family is first it just sucks that I got that car less then a year and it is boom going gone.
God Bless
Eddie
1 Apply for Food Stamps, so your sons don't starve. 2. Lock the car up in a garage and keep it there, until you can get the payments caught up. 3. Get some type of extra work, even if it's at McDonald's or something. 4. Do whatever you need to do the get the car payments caught up.
I guess you need the car, and you need to start rebuilding your credit. If the car gets repo'd neither of those things is likely to happen.
I'm going to reiterate some of what has already been said. I wish you weren't having to deal with this situation, especially having kids depending on you and I hope that it will work out well for you.
A very simplified and condensed version of the advice given by Clark Howard and Suze Orman, two financial pros that I trust and respect, is the order of importance when you have more bills than income. The most important thing is keeping a roof over your head, the next is feeding and clothing your kids and yourself. Health insurance is next, but transportation may be even more important if a car is the only way you can possibly get to work.
I agree with the person who advised you to apply for SNAP (Supplemental Nutritional Assistance Program) benefits (aka- 'food stamps'). If pride is the issue, swallow it. If you've paid taxes in the past, you should have no guilt or embarrassment about taking some help when you need it the most. Also, with kids, you can't afford to let pride be a factor. Your first priority is to take care of them, regardless of how difficult or damaging to your pride or ego that it may be. Not trying to be nasty, just blunt and honest since your situation seems rather critical.
The next step, as long as you have a place to live and you're not at risk of losing it immediately, is to work on the car situation. How soon could you possibly earn enough money to bring your lease current? Is there any chance that you could 'trade' the car on a site such as LeaseTrader to another party? You would still need to pay the past due, but it would get you out of the lease if someone would assume the payments. That would protect your credit from further damage (a repo will tank your FICO score by 100-150 points for a few years).
If you keep the car in a locked garage, a 'repo' man can't take it. If it is parked outside at your home or any other location, it's fair game. If you have any intention or hope of catching up the lease payments and keeping the car, I'd park it in the garage (or in a friend or family member's garage) until that happens. Eventually, the lender will take legal action requiring you to surrender the vehicle, but I've never heard of that happening until after the six months past due mark. If you end up in that situation, surrender the car or you face more expenses, damage to your credit and possible legal repercussions.
While it is far from an ideal scenario, if you know that you won't be able to catch up the payments, you should start trying to find a much less expensive car BEFORE a repo hits your credit. Contrary to what some people think, a surrender (whether a 'repo' or voluntary surrender) has the same severe impact on your credit. Once that shows on your credit report, you'll be looking at high down payments and interest rates of 19% or more!
Just be aware that if you drive the car, it will get repo'd. Repo men are very good at their jobs and they will have someone watch your movements and snag the car at the first opportunity. As much as I hate it, you are in default and the bank isn't getting the money they are owed, so the repo man is doing his job in recovering their asset.
Also, contrary to what someone posted earlier, you can and will be sued by the lender (leasing company) for the balance of the lease contract minus the amount they sell it for at auction (which is usually far less than retail price). In theory, you could owe the total of your down payment, the sum of all your payments and the loss they take on the sale of the car. It is simpler with a car you are purchasing, if you owe $22k on a loan, it gets repo'd and they sell it for $15k, you owe $7k plus various repo fees and bank penalties. A leased car is more complicated because you pay off the lease contract, then the loss between the lease residual (the price to buy the car at the lease end) and the actual sale price at auction. It sucks.
But you could file bankruptcy if that happens and the car lease would almost certainly be discharged. Again, it would take years to get your credit score back to the point where you can get decent interest rates on loans and even on credit cards. Even your auto insurance will be more if you get another car unless you live in California, Hawaii, or one of the other few states that prohibit use of credit data to determine auto insurance premiums.
I truly wish you the best outcome possible with this! I went through a repo in 2000 and it took me four years to recover to the point where I could get decent interest rates on a car loan and credit card. Good luck!
How did you qualify for a lease with such a low credit score?
Because somewhere there is a bank willing to take the risk at a certain interest rate. His score isn't bad yet. 670 isn't a bad score.
OP they cannot arrest you for not paying. Debtors prison is no longer allowed in USA. Yes there was such thing.
If the car sells at auction for less than what you owe you may be liable for the balance. They may send you a 1099 as income. I know it can be done with some debt balances. Not sure about a car but I don't see why not.
In order for them to attach your wages they need a court order. And they would need to notify you as to court date and why you're being taken to court.
They will sell the debt to a collection agency and they will go after you. They may do nothing.
Personally I think the advice of hiding the car is bad. Besides if he takes the car anywhere the repo guys will snag it. So he has to leave the car 100% of the time in the garage. So it's pointless to keep it. You can't drive it.
1. Try to find someone to take over the lease. There are websites where people do that.
2. Try to come current. The bank doesn't care about the car. They want the money. Whatever you need to do to catch up on payments. If this is insurmountable then dump the car. Walk in the dealer and hand the keys over.
3. Get a bike and a buss pass. Yeah it's crappy but it's cheap. You can save the money that was normally spent on car lease payment, insurance, fuel and maintenance. That's a huge monthly savings and it may get you out of the financial bind. Start saving some money to buy a car cash. Plenty of good used cars out there. And plenty for a lot less than what you paid for that lease.
4. Get on a government assistance for food. Your kids should be able to get free or reduced school breakfast/lunch. You should also be able to get the kids picked up by bus. Assuming the school is too far to walk. When I was little I walked to school.
5. If youre working both regular job and under the table be careful. I'm assuming you're not claiming your under the table wages. That's tax evasion ad it's punishable with jail time. If you're claiming the income ignore what I just said.
This is a great example as to why you don't want to lease or buy a car on credit. If something happens it's just another thing that is sucking money out of you when you are financially drained.
Good luck man I hope it all works out.
Last edited by Electrician4you; 04-13-2017 at 06:52 AM..
I have been a long time lurker, just reading citydata before making my Atlanta to Florida trip helped amazingly.
Sorry, I'm desperate here. I lost my job 2 months ago, my car is going to be recovered /repo'd any day. It is a new Altima, 2016. The car was $31K and the lease is almost half, $15k.
Nissan knows my situation, they don't care.
I have two sons and I can't pay this car, I could, but that would mean making my sons starve, screw that.
I am working off the books at my old job, I'm a bouncer.
My question is what can they do to me legally. Can they arrest me for owing 15 thousand and not paying, or do they send me letters in collections? My credit is already bad, it's 670, not good.
When I get another job can they garnish my pay, or keep my property? Sorry I'm desperate I only had the car a short bit.
Family is first it just sucks that I got that car less then a year and it is boom going gone.
God Bless
Eddie
i dont think debt is a criminal matter so i dont think jail time is possible. they can sue you obviousely.
can you sell the car and take subway/public transportation. its an expensive car so your not poor.
they can probably garnish your pay.
Because somewhere there is a bank willing to take the risk at a certain interest rate. His score isn't bad yet. 670 isn't a bad score.
OP they cannot arrest you for not paying. Debtors prison is no longer allowed in USA. Yes there was such thing.
If the car sells at auction for less than what you owe you may be liable for the balance. They may send you a 1099 as income. I know it can be done with some debt balances. Not sure about a car but I don't see why not.
In order for them to attach your wages they need a court order. And they would need to notify you as to court date and why you're being taken to court.
They will sell the debt to a collection agency and they will go after you. They may do nothing.
Personally I think the advice of hiding the car is bad. Besides if he takes the car anywhere the repo guys will snag it. So he has to leave the car 100% of the time in the garage. So it's pointless to keep it. You can't drive it.
1. Try to find someone to take over the lease. There are websites where people do that.
2. Try to come current. The bank doesn't care about the car. They want the money. Whatever you need to do to catch up on payments. If this is insurmountable then dump the car. Walk in the dealer and hand the keys over.
3. Get a bike and a buss pass. Yeah it's crappy but it's cheap. You can save the money that was normally spent on car lease payment, insurance, fuel and maintenance. That's a huge monthly savings and it may get you out of the financial bind. Start saving some money to buy a car cash. Plenty of good used cars out there. And plenty for a lot less than what you paid for that lease.
4. Get on a government assistance for food. Your kids should be able to get free or reduced school breakfast/lunch. You should also be able to get the kids picked up by bus. Assuming the school is too far to walk. When I was little I walked to school.
5. If youre working both regular job and under the table be careful. I'm assuming you're not claiming your under the table wages. That's tax evasion ad it's punishable with jail time. If you're claiming the income ignore what I just said.
This is a great example as to why you don't want to lease or buy a car on credit. If something happens it's just another thing that is sucking money out of you when you are financially drained.
Good luck man I hope it all works out.
This is the best advice. Pull the bandaide off and turn it in. Leave it in a store parking lot, call the repo company, and tell them where it's at. This saves you the embarrassment of having it taken at home or work. If you drive it to work the repo guys will find it. My BIL worked a job as a repo man during the recession and the places he would most commonly look were a person's home, their employer's parking lot, and the homes of known family. They will approach
It sounds like you're in a tough situation and catching up on the payments might not be possible or the best approach. Maybe you can save enough to buy a cheap used car just to get around until you're back on your feet. Best of luck to you, I hope your situation turns around soon.
Wouldn't bringing it back to the dealer cut out the repo man? Less business for repo man, and a fee that's avoided that will probably got tossed back on you.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
