Surrendering a vehicle?

Well we have a truck and our payments are very high. My boyfriend got a new truck without trading in the other because if we did they wanted to charge us $400 more a month. He now has the truck he wants and decided hes not going to try to get another. the truck we had was very simple and the new truck is fully loaded and payments are the same. The dealership told him to just surrender the other and by him doing that he it wont affect him that bad. But should it matter because we dont plan on getting anymore vehicles anytime soon. i just recently got a brand new car a few months ago and now he has his brand new truck. But will we be stuck on paying on the other truck. Its was 28000 truck and probably worth almost the same because its only a year old. And we already tried getting someone to take over the payments but its just too high. No one wants to take over. So is it a good idea. I dont think we have too many choices.
Additional Details
Okay he just called and they asked if we can do partial payments. He said he will call and see if we refinanced if the payment would go down. Right now the payment stands at 700! im thinking it really wont go down that much. we'll see. ill keep you posted.

ajsnskool

Are you saying he's planning on defaulting on a year old truck loan? Not making the payments? Can we say repo? Can we say REALLY bad credit? What if he totals that truck next year (God forbid) and has to get a new one? His insurance will only pay off the loan on the totalled truck (maybe), so he'd need a new loan to replace the totalled truck. You need to do something with that old truck to pay it off or you're going to be in a world of hurt. (He will anyway).

Fox

Try to sell it first. Either way, this situation stinks. If you "surrender" the vehicle, it will still show up as a repo on your/his credit! Even without trading it in, you are probably still upside down in the new truck loan. The payments are not the same, because you guys now have 3 car notes. Damn car salesmen! You say you might not need anything for a while? You don't know what can happen. I'm sorry girl, but you guys are kind of screwed unless you can sell the old truck.

jautomatic

bad marks on your credit can haunt you for a long time. Defaulting on a car loan will not be seen as bad just by other car dealers. it will be on your credit report. Any time your credit is checked it will be seen as a bad mark. That means any other loan, credit card, apartment rental. bad credit ends up making you pay more for things then people wit hgood credit do and prevents you from doing or having things. So you should always protect your credit. If you know the payments on the old truck will be made on time and the truck paid off then don't surrender it. But it sounds like you should try to sell it first. then you should consider surrendering the vehicle. If you fall behind on the payments for too long it will be worse hit to your credit then voluntarily giving it up.

And the truck is not worth the same as it was a year ago. The biggest drop in value is the second you drive it off the dealer's lot.

TERRI S

Well this is called a voluntary repo.....I would say its been to do it voluntary...but still it will effect his credit for at least seven years if not longer.....This will effect buying a home getting credit cards etc......The dealership where you purchase the new truck basically lied to you...so they could sell you a new one.....Its not the end of the world...but it will effect his credit greatly....

elstilez

have you tried putting an ad out? i see ads in the paper for that a lot. i don't think you should count on just never needing to buy another new vehicle because you never know! also, won't that affect your credit....?
good luck!

Leizl

Honestly, you've already made a bad choice by getting a new truck without getting rid of the old one. By surrendering it the bank will list it on your credit report as a reposession and you will be liable to pay for the outstanding balance for it (minus what they sell it for at auction, which will be next to nothing). Whether or not the bank will persue the money is up to them, but you could end up in court and have a judgement against you (it's probably not likely though, but the letters and phone calls will threaten that).
A reposession on your credit report will last at least 7 years and will make your credit rating go down a lot, which will effect getting credit for future purchases including cars and a house. So unless you don't plan on getting a new vehicle, house, or credit card for the next 7 years (or so, it can be hard to get it off your credit even after that) then go ahead and do it.
After all, you don't have much choice anyway. And in the future, don't listen to dealerships, they are just slimeballs trying to make a sale and will say anything.

River Euphrates

If he just 'surrenders' it, he will probably take a hit to his credit rating, plus he might still end up owing money on it anyway.

It sounds like this dealership is screwing him over royally, either that or your boyfriend is an idiot.

I would try to find someone to buy the original truck, and try to get as much money out of it as possible - if it is a year old (even if it is in good condition) most vehicles depreciate quickly the second you leave the car lot, and you aren't going to be able to get that much for it - hopefully enough to pay it most of the way off.

If these are work trucks, and are necessary for some business that your b/f is running, then it is one thing. If these are just personal vehicles, then he is screwing himself into a hole.

UCANTCME

If you do this your creditor or lessor will sell the vehicle and applies the amount received to your unpaid obligation.

For example, if you owe $2,500 on the car and your creditor or lessor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing.

In most states, a creditor or lessor who has followed the proper procedures for the sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract.

mbrcatz

You guys need to sell all three vehicles, and get out from the slavery of debt you've put yourself into. It's a disaster waiting to implode on you.

That $400 a month, is your NEGATIVE EQUITY - how much you owe on the old truck, more than it's worth.

Heaven forbid one of these new vehicles is in an accident . . you're going to owe payments on TWO cars you don't have any more.

Start listening to Dave Ramsey. www.daveramsey.com

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I like trucks

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