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.
First off, you need to stop borrowing money. You're not very good at it. You're going to do your family a lot of good if you just drive them around in a 20 year old Econoline until you get your debts paid off.
If you keep the van, you're going to pay another $23,000 for it. If you sell it, you're going to owe them probably $12,000 - less if you sell it on the private market. You're still going to owe them $12,000, but I'd rather be working to pay off $12,000 instead of $23,000. You could knock half of that amount off next year when you get your tax refund.
If I were in your shoes, I'd sell the van and get the cheapest one I could find when I get to Texas. I'd avoid getting another car loan, and I'd pay off the remaining balance that I owe the finance company as quickly as possible. You need to stop paying $500 a month in car payments and start putting that money toward your family. In a year or two you're clear and out of the mess. Then you can start saving that $500 a month or whatever toward a nicer car.
If the POS van you buy breaks down, buy another one. Get an old Caprice wagon if you have to. But don't go into debt again - you've already declared bankruptcy once and you're well on the way to doing it again.
She cant sell it, unless she has cash to pay the difference between the sales price, and whats owed
I thought of going the voluntary repo route as well. I'm not sure paying the balance would help anything since it would be reported as a paid collections account. Although the unpaid balance would be nagging to me.
Go see if you can finance a USED, CHEAP car, and let the van go to the repo guy.. But buy the new vehicle first..
Go see if you can finance a USED, CHEAP car, and let the van go to the repo guy.. But buy the new vehicle first..
Only problem with that is, if I give back the van, I'm doing it here and then flying down to TX to move, which sounds way better to me than driving. If I bought a new (to me) car, I'd still have to drive down there, take all the costs associated with that...tune-up, gas, motel stay, new tires, 10 cans of Fix-A-Flat because I'm paranoid....
I think I'd be better off paying cash for a cheap one.
You'll have to sign a note for the balance remaining on the loan. Tell your finance company that you aren't going to keep going with this loan on this car, and they can either sign a note for the balance after you've sold the van or that you're going to do a voluntary repossession - and then you'll sign a note for the balance after they've sold it at auction. That might also inspire them to drop your interest rate, if that is something that you want to negotiate.
A voluntary repossession will be a ding on your credit report, but you'll have to decide whether the credit rating or the cash is more important.
Yes, I guess that is what it comes down to. I got the letter from the finance company saying they cannot re-finance because they're already giving me a competitive rate. I guess they mean when they consider my credit report. They checked all three bureaus, so at least I can get my free reports to see where I stand at the moment.
Maybe I'm wrong, but it sounds like you want to get rid of this van because you don't want to drive it to Texas. Why don't you just drive it to Texas or get someone else to drive it down? Won't it cost a ton to buy a bunch of plane tickets and then when you get here renting a vehicle until you find one to buy?
You need transportation, you have a vehicle, you have a payment plan, you're about to relocate, I'd put the car situation on the back burner until you get settled in Texas.
Probably not the answer you want BUT it's an alternative ...
Car loans, like mortgages are what's known as a "simple interest" loan..
Simply put, the faster you pay down the principle, the less interest you'll pay & you'll reduce the length of the term ...
Each month, add a few extra dollars (make absolutely sure you specify "apply to principle) and in a very short time, you'll have the principle balance paid down, and regain enough positive equity to sell the call & either make a few bucks or a least break even ...
You're going to have to bite the bullet but, it will work
Maybe I'm wrong, but it sounds like you want to get rid of this van because you don't want to drive it to Texas. Why don't you just drive it to Texas or get someone else to drive it down? Won't it cost a ton to buy a bunch of plane tickets and then when you get here renting a vehicle until you find one to buy?
You need transportation, you have a vehicle, you have a payment plan, you're about to relocate, I'd put the car situation on the back burner until you get settled in Texas.
That's one reason, but not the main reason. The main reason is that I want to get out of the loan before schedule. I'm just not sure if I want to do that by giving it back now, or by paying it off ASAP.
My current plan is to drive it down...but I'm also very nervous about that. I've never driven that far ever, let alone by myself (well, the only adult). Flyng down is more convenient and not all that expensive compared to driving. I already checked out ticket prices...$999 for everyone one way. Gas alone is going to cost at least $500.
Probably not the answer you want BUT it's an alternative ...
Car loans, like mortgages are what's known as a "simple interest" loan..
Simply put, the faster you pay down the principle, the less interest you'll pay & you'll reduce the length of the term ...
Almost every bad loan I come across has interest calculated under the "Rule of 78" Simple interest and rule of 78 loans are equivalent if you keep the car and continue to make payments as scheduled...
The problem, as I understand it with "Rule of 78" loans is when you would like to pay off the loan early or refinance into a better loan...
Under the Rule of 78... the loan's interest due actually becomes more costly because the loan is "Padded"
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.
Getting out
