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Repo question for a friend

Discussion in 'Credit Talk' started by thecatslai, Feb 5, 2002.

  1. Feb 5, 2002 #1
    thecatslai

    thecatslai Well-Known Member

    I have a friend who stupidly went and bought an overpriced van about 18 months ago because her husband had been working overtime and they thought they had tons of money. His company has since done lots of cut backs and now he only works 4 days a week. The payment is really killing them but they are way over in negative equity so they can't sell it.
    I've tried to find the law in Washington about voluntary repo but I don't know where to look online. I know she will have to pay the difference back after they sell it. Do they take smaller payments or will she still be stuck with $400 a month? She is financed with Americredit who is just awful. Her interest rate is about 22%. She has like 4 years left to pay $400 a month on a 95 Mercury Villager that needs a timing belt, tires, and a million other things.
    What do you guys recommend.
     
  3. Feb 5, 2002 #2
    GEORGE

    GEORGE Well-Known Member

    The difference between a VOL-REPO and a "REGULAR" one is they don't have
    to "TAKE IT" @ 2:30 am...

    You will still have to pay what they DON'T get from the sale.
     
  4. Feb 5, 2002 #3
    sam

    sam Well-Known Member

    typically when you turn in the vehicle, they will auction it FAR below the wholesale trade-in value, tack on a ton of fines and charges, then sue you for the difference. The amount due is due in full once they decide how much it is...

    Hard place to be in when your car is negative equity. i think those places that make car loans at 22% know that folks will fail..
     
  5. Feb 5, 2002 #4
    thecatslai

    thecatslai Well-Known Member

    Thanks for your responses. I think she is screwed. The worst part is she filed chapter 7 in Sept. 1996 so she can't even do that. It amazes me that some people don't learn from their mistakes.
     
  6. Feb 5, 2002 #5
    jrjr35

    jrjr35 Well-Known Member

    I sympathize with your friend, I too got in over my head with an auto loan that is eating up my finances. I'm not in quite the mess though due to the fact that my car is very reliable and the company i financed it through has been reasonable. I understand that we are ALL responsible for our own actions but dont underestimate the guile of a good car salesman that can talk you into a 21% interest loan and convince you that "YOU WILL BE ABLE TO REFINANCE THAT TO A BETTER RATE WITHIN A YEAR"



    Thanks
     

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