Car requires extensive repairs and debt referred to collection agency?

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smiley_girl

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My little sister has gotten herself into quite an issue with her car and I am no longer sure what to do here.

Her engine blew a few months ago and was towed to the local dealership for repair. It turns out the repair bill was $6k. I told her to get her payoff so we could explore options, and well, it turned out she had not been making payments for some time. The loan company demanded a full pay off in the amount of 12k within 2 business days or stated they would reposses the vehicle. The 12K plus $6k is 18k! More than she could come up with, and more than I could help with. We told them they would have to repossess the car. They came back to us and said that since the engine was dead, it was not benefical and she should resume making payments. Still we could not come up with the 6k to fix it, so we told them this, and that we could not even make payments since the car is dead, and they referred the debt to their law collection office. The collection office said they'd reposses. Again, we told them to go ahead, and they again changed their mind.

We basically need to abandon the car as we can do nothing with it. It's sitting at the dealership where some nice service guy is getting chewed out for still having it there. We told the collection agency we would have to just call the junk yard and they indicated since we do not have clear title, they will not take the car. Any ideas what to do at this point? It's broke, won't run, and isn't even insured anymore. My sister rents a room and cannot have this car sitting in the road broken. She has now gotten a really cheap junker car for $2k. The car is a 2004 model year.
 
Dang that's tough. Whatever you do, DON'T junk the car are try to sell it. That will get you into lots of legal trouble. I would call the bank one last time and tell them you have NO intention to make another payment on the car and the address of the dealership. Tell them they need to come and get it because you are abandoning it.

This will obviously go on her credit rating and make it harder to obtain credit in the future, but she's pretty much already screwed with all the late payments.
 
The loan company cannot force you to keep the car if you wish to turn it in. Any storage cost the vehicle has accrued during its stay at the dearlership will have to be paid by the loan company. Call them, and tell them that you will no longer be able to keep the car and do not wish to make payments. They can try to get you to make payments all they want, but if you clearly state that you no longer wish to make payments, and do not try to hide the location of the vehicle, then they cannot force you to do anything. Your only recourse is to do this, and accept that her credit will take a hit considering she will have a loan defualt or 'repo' on her record.
 
ouch, Well, i would think that they would pick up the car because that was basically what would of happened if the car was in good condition. You should probably look through any contracts that were signed to see if it says anything about damaged vehicle's and not being willing/able to repo it. then there is the subject of credit, having bad credit sucks!! i read a story about a girl who had bad credit because her supposedly best friend stole her Identity and put her in the hole, unfortunately she had to pay the debts even though it wasn't her fault.
 
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