What happens if I stop paying my car loan?

So I stupidly took out a car loan with my now ex-boyfriend. We went to a financial service called SpringLeaf Financial, they used to be called American General. They were really nice to us and granted us a $2,000 auto loan but only if we cosigned because at the time I had no credit whatsoever and he had bad credit. At the time I had no reservations because I didn't think we'd be breaking up a year later. But now here we are broken up. We used to live together in Oregon and I moved back to California after we broke up and left the car with him in Oregon, we were on good terms then and I didn't anticipate any problems. Now nearly eight months later he has cut off all communication with me but is still expecting me to pay the car loan payment every month as I have been since we first got the car, we intended for the car to be solely in my name once we paid off the loan so I've been keeping up with the payments. But now that he is being an asshole to me I could care less about the car that turned out to be a lemon and gave us too many problems before finally being in working condition, thousands of dollars later. Anyways, now that he is being a huge asshole to me after a four year relationship, I'd really like to throw it in his face and stop paying all together. I know all ex girlfriends must say this but he really deserves it. I've read that my credit will take a hit but how bad will it be? I know he will take it much harder than me since his credit was **** to begin with.

Sorry for the long explantion, but what will happen to me if I just stop paying?

8 Answers

Relevance
  • Anonymous
    7 years ago
    Favorite Answer

    Take this from someone who has been in the Auto Industry for 14 years. A repossession will KILL your credit. Not hurt...KILL your credit. Doesn't matter that this was a co-signed loan. On the credit bureau, the car payment reports as a joint account. It doesn't state who was first and who was second on the loan. You are BOTH equally responisble for the payments, therefore, the negative marks on the loan will affect you both equally.

    I can usually find financing for people with bad credit....not always, but a good portion of the time. However, 99% of the time, if a customer has a repossession on their bureau, I can't do a thing to help them. Even if the repo was 4 or 5 years ago.

    Plus, keep in mind, just because the car is repossessed, doesn't mean the bank won't come after you both for the loss. They can and will try to recover any inequity in the vehicle (meaning if the balance owed was $2,000 and they sold the car at auction for $500, they will try to recoupe the $1,500). They will also come after you both for transportation costs, legal expenses and more.

    Find a way to pay this...you will be thankful you did in the future. (I understand the situation...but don't let a breakup haunt you for the next 7 plus years, as that is how long things stay on your credit report)

    Source(s): Automotive Sales and Management http://www.gartnercars.com
  • 3 years ago

    1

    Source(s): Instant Car Loan Approval - http://CarLoan.trustdd.com/?VFca
  • Debra
    Lv 4
    4 years ago

    Sorry this has happened to you. They can actually take you to court and sue you. Or should I say that they WILL take you to court and sue you. The judge will rule in their favor also. This happened to my brother a few years back. Just so you will know, you can purchase Gap insurance when you purchase your next vehicle. It only costs me a one time fee of $100 for my bank. This insurance will cover the difference between what you owe and they value of the vehicle. It is a pretty good investment for the money. Especially if you are that far in the negative do to having such a high interest rate. My best advice to you is to keep paying the original loan, because if you don't, you will end up having to pay the court cost plus extra fines and penalties. You can probably get an extension on the original loan if you call them up and ask nicely and explain your situation. Good luck! EDIT: Some of the above answerers have stated that your insurance company should pay for the damages. This is not true. Your insurance company will only pay what your vehicle is worth. You have to have Gap insurance if the damage exceeds the loan on the vehicle. That is the way it works in the great state of Florida.

  • Anonymous
    5 years ago

    Pretty sure that you will find all financial solution at: lendcenter.info-

    RE What happens if I stop paying my car loan?

    So I stupidly took out a car loan with my now ex-boyfriend. We went to a financial service called SpringLeaf Financial, they used to be called American General. They were really nice to us and granted us a $2,000 auto loan but only if we cosigned because at the time I had no credit whatsoever and he had bad credit. At the time I had no reservations because I didn't think we'd be breaking up a year later. But now here we are broken up. We used to live together in Oregon and I moved back to California after we broke up and left the car with him in Oregon, we were on good terms then and I didn't anticipate any problems. Now nearly eight months later he has cut off all communication with me but is still expecting me to pay the car loan payment every month as I have been since we first got the car, we intended for the car to be solely in my name once we paid off the loan so I've been keeping up with the payments. But now that he is being an asshole to me I could care less about the car that turned out to be a lemon and gave us too many problems before finally being in working condition, thousands of dollars later. Anyways, now that he is being a huge asshole to me after a four year relationship, I'd really like to throw it in his face and stop paying all together. I know all ex girlfriends must say this but he really deserves it. I've read that my credit will take a hit but how bad will it be? I know he will take it much harder than me since his credit was **** to begin with.

    Sorry for the long explantion, but what will happen to me if I just stop paying?

  • How do you think about the answers? You can sign in to vote the answer.
  • gabor
    Lv 4
    3 years ago

    Springleaf Financial Complaints

  • Mech
    Lv 6
    7 years ago

    Your paying on a car that's not in your possession? It's not ruining your credit on a measly $2000 loan. An attorney is out of the question on this one due to them charging $150 an hour. You should file a lawsuit in small claims court. Google up on how to do it or ask your county court system, they'll have you talk to someone who can assist how to file one.

  • 7 years ago

    What Gartner said.

    It's not worth killing YOUR credit just to "get back" at him. And, as mentioned, your credit will be slaughtered for years. Now is the time to be BUILDING credit for more important items (homes, business loans, etc.), not destroying it.

  • 7 years ago

    The vehicle will be repossessed and both of your credit ratings will take a big hit. The banks/credit rating companies won't care why the vehicle was repossessed, they will just see that you missed payments.

Still have questions? Get your answers by asking now.