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Discussion Starter #1
I am not new to FV but I am having a hard time paying my car with a $32K balance @ $466 a month, hard time as in we have the funds just that's a HUGE chunk.

I am tempted to just give back the car and take a hit on my credit as a voluntary repo but wanted to know if anyone has done this and anything you can advise me on?

On that note, I have great credit 796 and keep thinking even a 50 point hit for giving back my car wouldn't be so bad, I don't plan on getting more credit or even buy a house and figured I want to cut costs and be an at home wife, that this would lessen the burden of my husband having to pay off the car (which is in my name only). AND if anything and I could be a stay at home wife, that I could get a job locally part-time without the need for a car.

Idea, thoughts, advice?
 
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Hi Tracy! Nice to see you back. :) I can answer this one first hand. You may not remember me but when the crash of 2008 hit before we filed bankruptcy in 2010 we also had a brand new ( first one either of us had ever had ) vehicle. When the crash hit and we had to let it go in Feb of 2009 we owed about the same amount you are talking about. Here's a few things to think about before you do this. And I know this first hand. Experience.

Credit score will take more than a 50 point drop for repo. It WILL go back up at some point but figure on more than 50 points.

Next. Voluntary doesn't mean jack crap. Repo is repo.

Now for the bad news. Your vehicle will undoubtedly go to an auction house. Before they do this they put new tires and fix anything majorly wrong with it. This will go on the owed amount. There's also charges such as towing blah blah blah. ALL tacked onto the amount owed at the time. So instead of $32,000 it'll be probably more like $33 to $35,000.

Now after it sells you'll still owe the difference of the balance of what was owed and what it sold for. Say by the time it was done with tires and such the balance was $35,000... and it sells for $15,000 ( remember it's an auction and people look at it as a "yard sale") you would still owe the finance company $20,000. And they WILL bill for it. It'll go to collections if not paid. And there the fun starts as the loan is sold over and over.

Please don't think it will go for big money at the auction and you'd only owe a very few thousand. Most of these cars go to a used car lot and they expect to buy cheap enough to make a big profit.

We paid payments on the repoed vehicle from March 2009 till March 2010 and took them down in the bankruptcy otherwise we'd probably still be making the payments.

So you surrender the vehicle but you're still going to be paying on it for a long long time.

Advice... if you're wanting to stay home cut back somewhere and pay extra on principal. You said stay home and get a part time job. Then use that part time job to make the payment. You also said you have the money to pay it off but don't want to use it to do that. Maybe use part of what you have and make a huge dent in it and refinance it and keep working putting every dime you can toward the principal at that point then maybe build the savings back up before you quit. Get out pen and paper and go over what you can do at this time and set a goal.

I would NOT let it go back with that money sitting in the bank. It WILL come back and bite you in the a$$.
 

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Discussion Starter #3
Thanks for the advice, I did read about having to pay what the balance will be after it sells super cheap, so in the meantime, I will just keep the car, get a part-time job and in the midst, sell our houses (2) and use some of the profits to pay off the car and other debt we owe. Just to clarify I do have a full-time job but it takes away from the things I love such as my home, animals, family and just me time. I just am not happy there even though the pay is good and don't think they will allow me to go part time since I am the asst. manager which requires full time.

I appreciate that breakdown, made me see things in a new light actually.
 
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what about if you sold the car yourself?
I bought a pickup that way. The seller advertised it, I responded. I made an offer and we agreed on a price. The seller set up a meeting with his lender and the 3 of us met. I wrote a check to the lender, they signed over the truck and gave me the keys and title. Then the lender set up a new personal loan for the seller (to make up the shortfall). The whole thing went pretty smooth.
 

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Tracy-welcome back. And what were you thinking!lol not my business. I'd see if I could sell for close to whats owed. You can look up the blue book,minus any repairs and calculate what you would lose at auction from Repo. Pretty sure selling it yourself would win. Just make sure to include the lender. And yes to everything Niko said esp. the credit hit. I lost 80 points when A Target balance went 3 mo. unpaid (being billed to the wrong email!).
 

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Hi Tracy, good to see you!
 

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Discussion Starter #9
For now I am keeping the car and will figure a way to keep it, I have excellent credit and do NOT want that to change, I worked hard to get back to good standing (as many of you know). I will continue the search for a decent paying PT job but until them stay where I am and try to save up money until I do find something else.

P.S. Thanks for all the welcome backs!
 
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