Brian L asked in Business & FinanceCredit · 1 decade ago

Upside Down on Automobile. Repossession an option?

I owe approximately $10,000 more than the value of the car. The car is getting very high in miles and having problems. I know it will not last as long as it will take to pay the balance. I can get approved for an auto loan without trading this in and have a decent interest rate.

How would it effect my credit to buy a new car then let this one go into repossession?

3 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    Well depending on what condition you credit is in now. The leinholder may try to sue you for the difference between amount owed and the cars sale price after repossesion. But if you don't plan on needing credit for the next 3 or 4 years you really have no option but to get out from underneath it. I work with credit bureaus everyday and it really does suprise me how easy it seems to be for folks who have had a bankruptcy or repossesion to reestablish their credit. It almost makes me wonder why I try so hard to keep my credit perfect. But anyway, I hope everything works out.

  • Anonymous
    1 decade ago

    Brian,

    u shafted ur self.

    suggest u get 2 pt/tm jobs , save every dollar. Buy a Cash Car. work the 2 pt/tm jobs to pay off ur upside down slavery car.

    vist daveramsey.com to learn ur hard lessons from others bigger mistakes.

    Source(s): ex credit junkie/slaver
  • 1 decade ago

    If its repossessed. The bank will sell it for way less than its worth and definitely come after you for the deference.

Still have questions? Get your answers by asking now.