we cant afford our car payment no more..........?

B

boredstiff8

New member
and we want to give the car back to the finance company.... we still owe about 9 grand about 2 more years till its paid... my question is if we give them the car back will the finance company be able to garnish my salary ????????
 
That will be a repo and they will come after you for the balance. It would be much better to sell it and come up with any cash shortfall yourself.
 
Auto finance is what I do for a living and what will happen is the lender will sell your vehicle at auction for much less then it's worth and then come after you for the difference plus all fees for towing, storage, reconditioning, auction, interest, lawyers and anything else they can think of.

This will amount to several thousand dollars and if you do not pay they can take you to court, win a judgment and at that point they can attach bank accounts, garnish wages (if your State allows it) and file liens on any other real property you may own like cars, boats, land and homes.

All of this will show on your credit for the next 7-years making it very hard to get any other types of loans without making massive down payments, paying huge fees and State maximum interest rates.

You would be much better off to either sell the vehicle yourself and pay any difference or refinance for a longer term so you can lower your payments. Either way you can salvage your credit.
 
No but here's what will happen. The finance company will sell the car and whatever the balance is after they sell it they will ask you for the balance. As far as garnishing your salary, the answer is "no"! But this will really hurt your credit. So when you decide to make another purchase you will pay a very high interest rate, or you may get declined.
 
Yes for the difference between what you owed and what they sold the car for. Keep in mind that finance companies and banks are not in the business of selling cars. They have to real interest in mitigating YOUR loss on the car. They will need a court order to garnish your wages. And your credit profile will be destroyed - future loan applications will come with much higher interest rates.

You might be able to negotiate with them to refinance the balance to a longer term. That will reduce your monthly payments but extend the pay off time plus cost additional interest over the life of the loan. That may protect your credit, also.
 
if i understand correctly if you give it back that is a voluntary repo going on your credit and if they have to hunt it down they will come after you and of course it count on your credit. I would suggest trying to sell it on your own first or talk to a finance company and try to refinance it. You can have someone else refinance it with you as a co signer so that it's still your car. Good Luck, I've been there and it's very tough but it will all work out for the best.
 
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