Comments on: What To Do When You Can’t Afford Your Car Payment

By: Peggy Tarr

Peggy Tarr — Mon, 08 Mar 2010 18:35:01 +0000

What do you do when you have a vehicle that has been nothing but trouble since it was purchased and the dealership doesn’t really seem to care. Hadn’t had the vehicle two months, engine blew up. Took 2 months to put new engine in. Then some kind of trouble with drive line. Then electrical trouble in fuel tank, wouldn’t start, stranded on top of a hill. Driving horses to MT, transfer case blew up- could not even trade in core because it was spread all over interstate outside of Laurel. Now something is wrong with the back end. Payments are $600 a month (dealership saw last name, thought affordability was no problem!!! wrong) Because of all the repairs, upside down. What can be done? Thanks

By: Annie

Annie — Mon, 30 Nov 2009 02:28:41 +0000

Hello there, I tried all above: Salary decrease, so I ended with two jobs in which took away my family time and was not enough to pay the late and interest fees of all my monthly debts. Spoke with bank to refinance my car for lower payments with 800+credit score;the only option given was to skip 2 car payments. In the meantime posted my car in Craiglist for sale and tried trade In;Didnt work, not even in the same car dealer I bought it because of the debt. I voluntary repossesed my car and was told by the bank I will have to pay the difference after they resell my car. In other words my credit score would drop off anyway and on top of that I would have to pay more than $3,000 for the car that is not mine and have to use public transportation. I filled Bankrupcy chapter 7 and my lawyer got my car back to me with a $170 monthly payment at market value with no interest,no credit cards debt and still paying my mortgage. Quit the nite job and got back my family time. In other words Free Debt, Free Depression.

By: Ben

Ben — Mon, 23 Nov 2009 21:30:04 +0000

You might as well do your best to inform the loan company that you are in a tight spot financially, ask for their help with a payment reduction or a skip a payment offer for a one or two month time frame. This may not help in the long run, but at least you are saving the cost now and a better situation may lie in the upcoming month or two ahead. Let’s face it you and your family need to come first and as long as you do the best you can by informing the loan company of the potential problem, offering an alternate lowered amount for affordable payments(ultimately extending your loan pay off period time line and increasing interest cost) or whatever possible solution you and they can work out you are doing your do diligence and should have a clear conscience that you did everything you could to soften the economic blow we all are suffering. In the end if you owe the loan, have a voluntary repossession, are issued wage garnishment,or forced into a lawsuit eventually when the economy is up and you are prosperous again I feel that the lenders for car, home, etc.. will look back at this time period and write it off as a “sign of the times.” If they do not and decide to hold all people accountable, dredge the bottom of the social performance standards, etc.. then they too will be out of a job because statistically 60% of the population of the US are in foreclosure, repossession, credit card default etc.. and with the previous stated loan mentality no one will get a loan and without lending money, banks do not make money.

Hope this helps….

By: kelly

kelly — Thu, 06 Aug 2009 00:25:37 +0000

Does anybody know if your able to trade in a car you owe on for a car much less in value???

By: sell my car

sell my car — Fri, 27 Mar 2009 12:32:37 +0000

Sell the car is also what I would suggest! Price will drop if you wait longer…

By: Mason Easley

Mason Easley — Wed, 04 Mar 2009 17:11:52 +0000

I am in the same boat…I lost my job and had to take one making 80% less than I used to…my car payment is $600 a month and I can’t afford it anymore. I have spent all my savings paying for it…going to go talk to a bankrupcy attorney…should have long ago. I guess this is my only option. Anyone have a similar situation?

By: IntheSameBoat

IntheSameBoat — Sat, 24 Jan 2009 23:12:55 +0000

Apparently Mr Credit Card who answered this posting doesn’t have a clue as to how bad the economy is. If it was that easy to put your vehicle up for sale and actually have someone buy it, that would be great……there are not a lot of people who can afford to buy anything right now. Getting a second job…..there aren’t even enough jobs around for everyone who needs one to get one, let alone 2 jobs.

The advice that was offered here mean nothing in this economy. Most lenders for auto loans won’t even work with you….I’ve tried that route. It sure would be nice if someone could offer help to those who are now making half or less of what they were making last year.

By: Roger

Roger — Fri, 23 Jan 2009 03:58:56 +0000

Robin,
I was thinking the same thing. If she attempts to sell the car to a private party, wouldn’t she have to sign over the deed. Naturally, she would not have access to it because she has not paid off the loan, so technically, the car isn’t hers to sell. With that said and as Mr. Credit Card suggested, honesty is the best policy. Simply talk to the lein holder.

Your situation reminds me of “me”. My car got repossessed about 11 years ago, and it was the best thing that EVER happened to me. Yes, I had to pay back the $2,000 that remained after it was re-sold, but I started using public transportation and my bicycle to get to work and school, so I got in shape and dropped a lot of pounds, lol. Also, because I didn’t have that huge expense anymore, I was able to save and put myself through grad school. I’m still carless, and I love it.

By: Robin

Robin — Sun, 04 Jan 2009 21:51:19 +0000

How can you sell your car if the loan isn’t paid in full?