What is the advantage of NOT reaff your cars?

[debtmonster]

what if you do not reaffirm and make less payments? say maybe your car payment has been $250 and you start sending them $150 what do you think they would do?

The repo man will cometh and taketh away, if they can find the car. I would think that if there were no communication with them and you got the equivalent of 90 days behind, they'd come looking for it.

So in 90 days, you should have paid $750. If you did $150/mo for 3 months, you'd be at $450 which is almost 30 days past due or so. I would think you'd be able to drag it out for a while. I would keep the car in a garage or swap cars with a friend so the repo man can't find it.

I'm sure they have the computer know the equivalent of 90 day's payments past due.

Some of the current and ex-repo people here should know the answer to this.

[mintz]

watch out for cross collateralization

[gdave44]

Remember, you do have some bargaining power in your reaffirmation! The lender doesn't want the car back, they'll never get it's value from a repo. They want their money. Negotiate with them. Talk down the balance or otherwise improve the term. If they can get 5k out of a 7k note, the smart ones would be happy. Even better if they can get 10% from their 22% note and still get the full principle.

Reaffirming an upside down debt without some benefit to you is just stupid.

[debtmonster]

Remember, you do have some bargaining power in your reaffirmation! The lender doesn't want the car back, they'll never get it's value from a repo. They want their money. Negotiate with them. Talk down the balance or otherwise improve the term. If they can get 5k out of a 7k note, the smart ones would be happy. Even better if they can get 10% from their 22% note and still get the full principle.

Reaffirming an upside down debt without some benefit to you is just stupid.

I am wondering if they can do $6,000 on a $12,100 payoff?

If my bank won't do it, then I'd rather give the car back and buy one of these for the amount close to what I would considering re-affirming:

Sweet car

Other sweet car (Click view larger pic and see how nice that car is!)

As you can see, even if they were to offer me to re-affirm at $8,000 reduced from the $12,000 payoff, why would I want to when I can buy those two beautiful cars above instead for the same money instead of re-affirming on my crappy Saturn which is barely worth $4,000 once they auction it off and pay repo fees and what not? By the time they get my 2007 Saturn back, it will have like 75,000+ miles. With those high miles, that makes it hard for many customers to get financing on it based on the year and mileage. Plus it can't qualify as a certified-used car now since it's way past the 50,000 mile mark. When I called to see about getting a 722 redemption loan on it, they said it does not qualify because they only allow up to 60,000 miles on a 2007 car. So if this car sat on a used car lot from a dealer who bought it at the auction, they'd have a hard time selling it unless somebody paid cash.