Auto repo question

[gak555]

Hi All,
Here is the deal. My chapter 7 discharge went through in October 2007. I did not reaffirm my car loan, but have been making regular payments. I've continued to make the same payments, including interest from the original loan which was at 5.99%. My car is a Mazdaspeed gas guzzler. I have given thought to stopping the payments, letting them repossess and then buying a honda fit or some other gas sipper. I know the interest would be much higher. I'm wondering approximately how many payments does one have to be behind before the car company starts repo proceedings. Also, do they just come in the middle of the night and snatch it with no notice.
This whole thing is a world I know nothing about. Also, is this a good idea to begin with ? The car payments have already been dismissed in the chapter 11. And finally, are there any other alternatives ?

[BassBoy]

Usually, after you miss one payment, the lender can take action to repossess. If you're wondering about when and where the lender will take the vehicle, that's hard to answer. I often wondered if the repo of my truck would look like one of those Discovery Channel shows about the Repo-Man showing up late at night draggin' the truck out of the driveway without making a sound. LOL! Anyways, you could always make arrangements to have the vehicle picked up, but be sure to have another vehicle first.

I know that the fuel costs are an issue, but with your current rate, and probably assuming that you're about half way through your loan, buying another vehicle with a higher rate would probably be a wash either way. You need to do a little more investigating to find out what rate you would qualify for, how much you would save in fuel costs, how many more years you'll be maikng car payments and how much more the loan would cost you and then figure out what is the right choice.

I wish I could be of more help.

[BK2008]

I know that the fuel costs are an issue, but with your current rate, and probably assuming that you're about half way through your loan, buying another vehicle with a higher rate would probably be a wash either way. You need to do a little more investigating to find out what rate you would qualify for, how much you would save in fuel costs, how many more years you'll be maikng car payments and how much more the loan would cost you and then figure out what is the right choice.

I wish I could be of more help.

I got into that kind of thinking trading my Ford Freestyle with a $389 payment into a Honda Accord $569 a month, thinking the gas mileage difference of 6MPG would cover the higher payment....WRONG!
I made a total mess of that thing and ended up repo'ing the Honda.
Should have stayed in the Ford. But all ended up ok, I got a cheap used car for 7K with a $140 payment and I love that car, and get better mileage than the ford, but a little less than the Honda.

Be very careful with this..in theory, it sounds great, in practice, it looks better on paper than the reality.