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Defaulting on car loan
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04-13-2016, 10:59 PM | #23 |
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Screwed up credit...
...it isn't simply about applying for mortgage and not qualify. ...it isn't simply about only having to use cash to buy things |
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04-13-2016, 11:01 PM | #24 |
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Be prepared to never have another credit card, own a house, buy or lease a car.
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04-13-2016, 11:09 PM | #25 |
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04-14-2016, 01:14 AM | #26 |
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Well, now you have TWO cars that are upside down...
Do your best to sell that car and sell something you own to make up the difference. You just qualified for another loan (I'm assuming you didn't buy a car cash or you probably wouldn't be in a position to not afford the other car. Unless you bought a beater for $500 or something) So if you can qualify for two loans, you have good credit now. Preserve that. Go get a personal loan to make up the difference of what you can sell your car for and what you owe. If you are not in that position, try to have someone take over payments. You may be upside down, but there may be someone out there you know that can't qualify for a loan but can afford to make the payment. If you let it get repossessed, you will absolutely get sued for the difference if it is more than a couple thousand between what you owe and what they sell at auction for. I'm willing to bet it will be. And when you don't pay that, it will go into collections and potentially garnish wages. Most likely not garnish, but then it will eventually get "charged off" of your credit. It will show a charge off and if you ever go into a career that requires certain licenses and/or requires you to have a clean history of payments, you will not be hired without having to jump through hoops. You may not care now but you may care in the future. And if you truly don't give a shit about now, or your future, then you might wanna park it in the hood and pray to God that it gets stolen, vandalized, and wrecked to the point of it being a total loss or burned to the ground......
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04-14-2016, 06:40 AM | #27 | |
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04-14-2016, 07:02 AM | #28 | |
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I got lawyers involved and everything but still the way Transunion, Experian, and Equifax operate was almost like they didn't even care I was hacked and still refuse to remove those things from my credit, even after several letters and calls from my attorney.. I unknowingly had 6 credit cards opened up and went delinquent on about $10k in just a few months, when I finally figured it out it was way too late.. The lawyer got me for about $800 before I realized this wasn't going to get me very far so I just gave up and now I'm slowly paying it off.. Our system is so screwed up, and the credit system is even more screwed up.. Pay off all your cards on time and you go up 5 points in 3 months, but miss one payment, and you drop 100 points like that.. On top of that, get credit card hacked, and it's almost like everyone assumes you're full of shit.. smh.. I wish there was a way to just get it all removed as a good-will given that I had no clue what was going on, and I had a 745 before it all started..
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04-14-2016, 07:05 AM | #29 |
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I think the OP has gotten his auto loan mixed up with houses in SoCal or Phoenix. In those cases, yes, you simply walked away, because there was zero possibility of the borrower's making good for the rest of their lives. Say they borrowed 900k for a home, and it was worth 380k in 2009.
But a car? How much could the OP possibly owe, let's get extreme on an E9x, 20k? To default on that amount and go and get another new car? wow with the FICO scores, I didn't know they could get that low--don't borrow, why would you knowingly pay more than somebody else? That's like your buddy getting a playoff ticket for $50, and when you walk up, they say sorry, it's $125 for you. |
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04-14-2016, 07:31 AM | #30 |
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If they are unable to collect the debt then they will send you a tax bill and you will owe taxes to the IRS. Since there are no checks and balances regarding the IRS, they can do whatever they want (ie. garnish wages, withdraw or freeze funds from your bank account, etc.).
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04-14-2016, 07:36 AM | #31 | |
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The employment thing is nuts, imagine, you need a good job to catch up on your bills, and you are denied. I always found employment interesting, I actually attempted to make sure the NCIC and background check were ok, before I moved, because I had a perfectly good job that I would be leaving. The recruiter BS'd me it was set (because I later got to know him). It finally dawned on me the employer does not care that you are joining them and leaving a good job. They can background check you again 9 mos or 4 yrs. later, find something, and fire you. |
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04-14-2016, 08:57 AM | #35 |
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Haha you guys are funny.... I got my first 335 at the end of 06 when i didn't even see any on the road, got another LCI e90 after that, and jumped into a f30 335. I owed money on my LCI, so that money piled on top of my f30, resulting in over $700 car payments. The car is worth around 30, and i still owe around $35,000. I was driving not too long ago, and hit something in the road. Fucked my suspension, rims, tire... over $2500 in damage. With the $700 payment, upside down on the car, and now this little accident... just a bad situation that i could not be in anymore. I obviously know the consequences, but wanted advice from someone who has been through the same situation. Picked up a Final Edition Evolution.
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04-14-2016, 09:04 AM | #36 | |
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04-14-2016, 09:12 AM | #37 | |
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Its your life and you can fuck it up as much as you want, but good luck getting any kind of credit with a default of that magnitude. |
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04-14-2016, 09:12 AM | #38 |
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Sell the car (or turn it in) take out a small personal on the balance and pay it off. Think about it, is it better to A) jack up your credit for 7 years or B) pay what you owe on a car you shouldn't have bought in the first place. Do the right thing for yourself.
It will cost you a WHOLE lot less in the long term to just pay for it now.
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RIP 09' E93 N54 6MT, Smarttop, Lux V5, JB4 G5 ISO, BMS DCI, Black ER CP, Tial BOV Last edited by Bent_remy; 04-14-2016 at 09:25 AM.. |
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04-14-2016, 09:16 AM | #39 |
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Also as mentioned above if they auction your car for 25k since its damaged you will still owe them 10k and that is probably enough for them to come after you for it in court. You're better off at this point selling it for the max it's worth rather than it going to auction
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04-14-2016, 09:19 AM | #40 |
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It' will cost you two - possible three times the 5,000 living life with F-up credit for 7 - 10 years! It all depends on how your creditor files with the big three credit agencies.
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04-14-2016, 09:27 AM | #41 | |
Is it the shoes!?
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04-14-2016, 09:39 AM | #42 |
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I ran into some debt issues awhile back and I was able to consolidate my debt into one payment. I then simplified my life, put my head down and ground it out.
You are in debt 35-40 grand. Time to man up |
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04-14-2016, 09:41 AM | #44 | |
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I don't know all your details but the depreciation is steep on these cars, so the key is to put 50% or more down, and never sell it. That's my way of handling a new BMW that was not paid for outright. I mean the fact that you got hit 3X on depreciation doesn't help the fact that there's little to negative equity. |
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