Up Side Car

[mztee34]

Okay I filed for Chapter 7 on 7/20/11 my hearing is scheduled for 8/25/11 I own a 2006 Nissan Titan worth about 15000 according to NADA and 11000 according to KBB clean retail.
The dealership offered me 9000 for it but it was contingent on me buying from them, of course. I owe only 7000. In my state (Louisiana) the automobile exemption is 7500. My current payment is 500 which i am behind by three months. I have body damage to the vehicle which I had appraised at 5700 to repair. I advised the court that I would redeem for 5700 with USAA do you think that would be considered a low offer?

I want to pay it off then get something with better gas milage like an Altima, I don't want to trade in with a balance because I do not want a note I want to sell them the car and pay the difference...any thoughts on my situation is appreciated.

[newbie2]

I'm a bit confused..you have several different values stated for the vehicle. If the dealer already took in to consideration the body damage when they offered you 9000 for the vehicle, then that would be the most accurate value.

All you can do is make the offer to the lender and see what happens.

[AngelinaCatHub]

The dealer of course is giving you a sweet offer. There is a considerable mark up on a new car so he can get you on the trade in. Go by the blue book sell to an individual or trade in value in poor shape. You have devalued the car by the amount it would take to fix it as well as the value of an accident happening with that car.

I like your idea of paying the difference as that is what all dealers do, but it depends on what you would buy also. Cheaper car, cheaper value on the trade. Remember they make their money on financing you and depend on their cut. Used cars are every where now days. Look for a good used car and sell yours outright as is. See if it works. 'Hub

P.S. Welcome to the Forum

[justbroke]

I'm confused... are you trying to redeem? If so, you have the value at $9,000. I would use CLEAN TRADE-IN VALUE for a redemption! (At least that is the value they use in my District!) That means that if clean trade-in is about $9K, then you really only have $2K in equity.

[mztee34]

Sorry for the confusion...the 9000.00 was what the dealer said it was worth without damage. Th appraisal for damages was 5600... so I subtracted that from the 9000. I later found out my state uses NADA clean retail value (SMH) so I averaged KBB and NADA came up with 11,000 so I deducted the 5600 from that. I'm about to file a motion to redeem and trying not to pay anywhere near the 7200 I owe them and then I will trade it in for something without a note.

[justbroke]

Sorry for the confusion...the 9000.00 was what the dealer said it was worth without damage. Th appraisal for damages was 5600... so I subtracted that from the 9000. I later found out my state uses NADA clean retail value (SMH) so I averaged KBB and NADA came up with 11,000 so I deducted the 5600 from that. I'm about to file a motion to redeem and trying not to pay anywhere near the 7200 I owe them and then I will trade it in for something without a note.

When you file your motion, make sure to include exhibits (evidence) of the value. Show the printouts from KBB and NADA. Make sure you write in the motion that you used the average "clean retail" value. Make sure that you also include a copy of an estimate to repair the damage. Otherwise, you won't have "evidence" that it's worth less than the $11K average.

Best wishes to you. I don't see your lender budging on the issues. Additionally, what happened with your insurance? (Why wasn't an insurance claim filed?)

[mztee34]

Just to update I filed the motion to redeem for 5000.00. The court never received an objection, so the clerk told me not to show up for the hearing because the judge would honor my request! I talked to a dealer who wants to give me 10500 for the truck so it worked out great!

[justbroke]

Just to update I filed the motion to redeem for 5000.00. The court never received an objection, so the clerk told me not to show up for the hearing because the judge would honor my request! I talked to a dealer who wants to give me 10500 for the truck so it worked out great!

See how much fun this can be! If you present enough evidence, most defendant creditors will not even respond to the motion.

[mztee34]

Yep! Thanks for all your help I filed the appraisal along with the estimates and they said nothing lol so glad I filed myself instead of paying an attorney because I learned so much about the legal system.