Ride through car questions

[idainc]

Discharged about 22 months ago and we’ve been paying on our car financed by a bank. The loan shows as discharged on our credit reports. We’ve kept up payments on the car and maintained it and we’ve got about 14 payments left. Its fully insured.

I know we have no liability for the loan – are we liable at all to do repairs ? IE: transmission dies and it no longer makes sense to fix it. Can we just call them up and tell them to come pick it up ?

Can I presume we can use any equity in the car as a trade? And if so, what kind of loan rate can we expect maybe 2 years out of BK ?

I’m looking at what we’d have in terms of value and mileage at the end of the loan vs. any upkeep and repairs.

[malf1204]

Yes you can stop paying and they will come a pick it up. They will sell it at auction and if there is any money left after towing, repo, recondition, storage and auction fees and the lien is fully paid you can expect a check for the rest but I would not count on it and it will be several months after repo if you receive a check. The fees on my repo after BK7 discharge exceeded 2K. I am one year out and I received 9.9% from Capital One

[btbeme]

Since you have no liability (did not reaffirm the loan in your Ch 7) then you can walk away at any time. Some finance companies might try to pursue you for damages outside of the ordinary, such as damage from an accident, that insurance might otherwise cover.

Trade? Yes. Loan rate? Who knows? But to get a favorable trade it should be in good mechanical condition. Rates vary all over the map, but always remember that financing terms are negotiable. CapitalOne has a good "test drive" program to see what type of loan you would get. But hard to predict a rate.

[idainc]

Thanks everyone. I couldn't find the Cap One test drive. It's a relatively low miles Volvo that to be made "perfect" by Dealer standards would need about 2K. I'm in that nexus of ending payments yet needs a little work - but not much. I could pay it off and did try when I made an offer to the bank of what I thought it would bring them at auction and got no response. Loan payoff is about 1.5K over KBB trade. Nice car and serves our purposes well.

I've kept paying on it on the theory that if the engine / tranny goes I can just walk away. I suppose I'm at the same point many people are with a used car and how long it'll last. I will say though that a 9.9% rate payment on $30K is a good bit higher and longer than what I owe now.