Anyone financed with Toyota?

[Tromploi]

They want me to reaffirm. I do NOT want to. I have a 2007 I owe about 12K on, and I could probably sell for close to double that. Trucks hold their value here. Anyway, I called them because their reaffirmation letter states that if I don't reaffirm, pay and retain is no longer an option. Toyota rep said, "at this time we are not taking back vehicles on which the payments are current, but that could change at any time, without notice". Well crap. I get that that's the PERFECT thing for them to say, but that IS a huge risk! I only pay $295/mo on it.

Thoughts?

[yuckhatethis]

We are financed with Toyota, but we did reaffirm. We knew we wanted to keep the car and didn't want to take any chances with it.

[dingdong]

Poop head lenders! Of course they are going to say that, they want you to reaffirm.

If you reaffirm, you are on the hook for the loan. If something happens in the future, you can walk away with no recourse.

IF you don't reaffirm, and keep paying, why would they take the car back?


They would be cutting of their head to spite their face as my dear old dad would have said.

Especially in this market where no one is buying cars.

They are trying to manipulate you into reaffirming in my opinion. They never said, they WOULD take it back, only that they can't guarantee it.

[Tromploi]

I agree with dingdong. They are trying to scare me. I am not going to buy it, rolling the dice. Seems to me reaffirming also slows down the whole discharge process (or could) and man do I want to get on with it.

Thanks!

[pcn]

If you owe less than it's worth (equity, right?) why not reaffirm, and if something financially horrible happens, sell it to pay of the balance, and keep your equity? Why wouldnt you want to reaffirm if you have such a large amount of equity?

[dingdong]

Park it in the garage when you are at home, if you do see some repo action, sell it before they repo and pay off the loan.

[jessegirl]

Dingdong is right - I have a loan with GMAC. I never reaffirmed and I continue to pay for 6 months now. I have never heard from them. As long as you are continuing to pay on time, why would they take it? Its a lose for them. They are just trying to bully you into signing the reaffirm. I did not reaffirm anything that anyone wanted me to and i still have the item because i am current on it. Just continue paying on it and I WOULD NOT sign anything...

[ansky0007]

I disagree with everyone... If you owe $12k and the vehicle is worth more then you would be silly to not reaffirm this debt. I would only agree if the vehicle is worth less than you owe, In the opposite situation where there is equity in the vehicle if anything happens down the road you could just sell it and pay it off and keep the difference.

If you dont reaffirm it and the vehicle is worth more than you owe there is a reason for them to repo it because they could sell it at auction and actually make a profit for themselves.

An additional reason to reaffirm would be that most likely they will update your credit report and you will now have a positive account showing payments than a negative account that shows in bankruptcy. I reaffirmed my GMAC loan where we had around $4000 equity and they just corrected my credit report and my score jumped up 30 points.

[dingdong]

Yes, but a reaffiration means more lawyers fees, plus the added scrutiny of the BK judge.

If the BK judge rules it a hardship, then the OP is SOL, although it probably wouldn't happen, since it appears she has significant equity in the vehicle.

It will also, as she mentioned, possibly extend her closing date.

[ansky0007]

GMAC sent me the reaffirmation papers, my lawyer signed it and we sent it in. There were no costs involved. If your schedule J shows you can keep paying it the judge will sign off on it and you are good to go.

[yuckhatethis]

I agree with dingdong. They are trying to scare me. I am not going to buy it, rolling the dice. Seems to me reaffirming also slows down the whole discharge process (or could) and man do I want to get on with it.

Thanks!

Go with what works for you! I think the whole reaffirm vs. ride through debate really depends on the individual circumstance. For us, we just didn't want to risk losing a car that we love and can afford. We also have (and are incredibly grateful for) very stable jobs and very consistent income. If that hadn't been the case I might have considered a ride through. Incidentally, it didn't affect my discharge date (was discharged right on time). That said, my case isn't closed yet, just discharged...

[Tromploi]

Gah, I go back and forth! All very good points. I am not worried at all about making the payments. I am, however, still married. Soon, I will be separated. Husband won't leave me out in the cold I know, BUT I just don't know what my future holds (who does right?). I get the credit reporting, which they do do, and I get the advantage of receiving a statement (minor). I just hate committing to anything when I think there are more cons than pros to reaffirm.

I said the exact same thing to my atty about it being in their benefit to take THIS vehicle because they can sell it for much more than I owe on it. He said he just had never seen it, and didn't think it would be an issue. Again though, just a guess.

May have to seek out the ol magic 8 ball on this one! Haha,,,

[mgmadara]

Husband won't leave me out in the cold I know, BUT I just don't know what my future holds (who does right?).

For this very reason I would not reaffirm. It is never in your best interest to do so. They will not repossess your vehicle no matter how much equity you have if you make your payments on time. In the many years that I have been reading this forum I have never seen one person who has had their car repossessed and was current with their payments. They don't want your car they want your money.

[Tromploi]

Okay so reading more about reaffirming then I ever wanted to know.

I owe $12,345
LOW KBB has the truck at $18K roughly
It has a custom grill and a shell on it

I know retail for private party would be low $20's, I see them on Craiglist all the time.

Now, if I don't reaffirm, and I default, and they take it (or they just come take it while I'm current) I would just be out the equity in it.

If I do reaffirm, and I default, I wouldn't owe them anything anyway would I? Since they would actually be making money? It's really just the same thing, out the equity.

So seems like the only difference is whether I am willing to gamble on them taking it while current, and/or whether or not it will delay my discharge at all.

[dingdong]

If you reaffirm, I am pretty sure you are liable for the debt, it is a reaffirmation of a contract and if you default, I don't believe the debt is considered dischargable, even though it was listed in a BK.

So, worst case scenario, you lose your job or get hurt and can't work, when you reaffirm, you have basically given them permission to go after you for the debt, and any deficiencies, including a 1099 if you happen to owe money after they pay off the loan.

If you don't reaffirm and the situation above happened, you walk away without any recourse.