Question about surrendering car

[cj0203]

We are surrendering one of our cars, which is currently sitting under a HUGE pile of snow, with a broken engine and a broken headlight (the headlight is thanks to our icy driveway, we hit the car with our truck trying to get UP the hill to the road and didn't quite make it ).

We are still paying insurance on it but no longer paying the car loan. We had originally figured we'd give it to the bank once we file (which should have been March), but now it looks like we won't be doing that until May or so. So we'll be paying $50/mo for insurance on a car we plan to give up. I can't cancel insurance (it's required in NH when you have a lien).

I guess I"m just wondering, should we give it up now? Will they even bother trying to repossess it when I tell them it doesn't run and has a broken light? We owe about $4000 on it (it's a 2000 Saab 9-5). The cost of a new engine is more than the car is worth.

I was just looking for opinions.

Thanks!!

[HHM]

How many payments have been missed?

About all you can do is let the repo process run its course. Since the car is not running, it would probably cost you more to have it towed to a dealer than paying for the next month or two of insurance. They will come and get it eventually.

Although it may be the law to have insurance on the car, I don't think the insurance company can force you to keep their policy. So, strictly speaking, you probably can cancel the insurance. Although you need to check with your state law about the ramifications, about all that happens is the DMV will suspend your registration when the insurance company reports the cancellation to the DMV. Since you are not driving the car, I don't think having a suspended registration is going to hurt you in anyway.

[CindyLou]

How many payments have been missed?

About all you can do is let the repo process run its course. Since the car is not running, it would probably cost you more to have it towed to a dealer than paying for the next month or two of insurance. They will come and get it eventually.

Although it may be the law to have insurance on the car, I don't think the insurance company can force you to keep their policy. So, strictly speaking, you probably can cancel the insurance. Although you need to check with your state law about the ramifications, about all that happens is the DMV will suspend your registration when the insurance company reports the cancellation to the DMV. Since you are not driving the car, I don't think having a suspended registration is going to hurt you in anyway.

Apply for a nonoperable registration and give the plates back to the DMV (or follow the procedure in your state...that's how you do it in CA)..then cancel the insurance. The lein holder cannot FORCE you to provide insurance, but they can buy you policy and charge your for it if you fail to do so. And in this case it really doesn't matter.

I say let it sit there until it's repo'd.

[cj0203]

I already cancelled the registration, we transferred it thru the DMV to the replacement car we got.

I guess we'll just let it sit. Thanks for the posts!!

[krielly]

I live in Vermont. While we ARE required to carry insurance on any vehicle with a loan, we have been able to drop "collision coverage" on vehicles which are not on the road, and just maintain the remaining coverage. Something you may want to check into. Dropping collision may save you some $.

[cj0203]

Thanks, I did look into that, we are required to have full coverage here in NH. Would've been nice