What is the real process of Repossession

[Rozi]

So I went to a Toyota dealorship this weekend to buy a cheaper car. I currently drive a 4Runner that is financed thru Santander for 598.81. Toyota wanted to sell me a 2011 Carolla for 498.00 a month with only 500.00 down. The catch is I would have to do a voluntary repo on my 4Runner. The manager told me that the repo should be easy since I am giving the car back to the bank on my own will. He said they will sell the car and what they don't sell the car for I am responsible for the rest. He said I could make small payments of 25.00 a month to Santander and they can't garnish my wages. He said that my credit score is below 600 so a repo wouldn't affect it that much. Is he telling the truth? Should I take this deal? I love these boards and everyone has been so helpful!

[Wantmypeace]

If you can't afford 598, I'm thinking that 498 isn't going to be that much different. I'd be looking for something you can pay cash for (maybe save up for a month or two), or finance something older and get a very small payment. You don't want to end up back here again...

[kenzter]

What are the terms on that corolla loan? $498 seems VERY high for a car in that price range.

[NoMoreCards]

That salesman/woman should be hung by the toes over a ant hill! To suggest such a thing I think is terrible. Your payment would be 100 cheaper a month, and your insurance would more than likely be higher due to the higher value of the vehicle. PLUS you'd be paying 25 a month for YEARS!! Not to mention your credit will be worse than it is today, keeping you stuck. I can promise you that if you let your current car get repoed, it will be sold for next to nothing and they will come after you for the balance. So you will be paying for it, even after you do a voluntary repo. You just won't have the car.

I have to agree with "Wantmypeace", save up and buy a cheaper car for CASH. You can find a very nice, dependable, reliable car without the high payment. I found a car right after discharge of my BK that is 17 years old, and I'd drive it anywhere.

[Rozi]

Thank you so much for the replies!!! There was never a contract drawn up but, the manager told me that he could sell me the car for 498.00 a month and the car only costs 21K so I can only imgaine the terms. I am having problems paying the 598.00 a month and I have seriously been thinking about bankrputcy but, I am hoping that is the last result.

[bcohen]

With all due respect, if you can't handle $598 a month (which is an extremely high car payment as it is) then I very seriously doubt you'll be able to handle $498. And remember, that's just the loan payments. You'll still have to pay for insurance, fuel, maintenence, and so on. Therefore, your cost to own this Corolla will easily exceed $750 a month, which is more than what a decent 2-bedroom apartment rents for here!

BTW, the salesman is saying what he thinks you want to hear. There is no such law that merely by paying something toward the deficiency balance, that would prevent Santandier from filing a lawsuit, obtaining a deficiency judgement, and proceeding to garnish your wages, levy your bank accounts, and so on.

It sounds to me like you'd be better off to quit paying on the 4-Runner, drive it for a couple months until the repo man comes to get it (maybe longer if you keep it in a locked garage, or at a friend's house) and then use the money you're saving to buy an inexpensive, but functional "beater car" from a private seller, auction, or similar source.

Then, by the time the deficiency judgement hits, you can file BK and dump the debt.

[jetsfan2010]

I am not sure if you ever filed BK or made your decision, but would be curious to hear your choice. I think many members here hit it on the head. Since you had not filed already, the salesman was probably able to state he could get you approved for financing, though the rate would be rather high. As many have said, figure out the true cost of owning the car, not just the car payment. Get a quote from your insurance company on the new car you would be buying, before making any decision. there are some factors that arent listed, such as the year of your current 4runner, current mileage, how much time left on loan etc. a new corolla will last you forever, and if you did the vol repo, you could look a potential ch 13 on the def balnace from the 4 runner loan plus lowering the interest rate/payment of the newly financed corolla.

Look at all options and keep an open mind.

[Rozi]

I am not sure if you ever filed BK or made your decision, but would be curious to hear your choice. I think many members here hit it on the head. Since you had not filed already, the salesman was probably able to state he could get you approved for financing, though the rate would be rather high. As many have said, figure out the true cost of owning the car, not just the car payment. Get a quote from your insurance company on the new car you would be buying, before making any decision. there are some factors that arent listed, such as the year of your current 4runner, current mileage, how much time left on loan etc. a new corolla will last you forever, and if you did the vol repo, you could look a potential ch 13 on the def balnace from the 4 runner loan plus lowering the interest rate/payment of the newly financed corolla.

Look at all options and keep an open mind.

Thank you sooo much for your response! To be honest with you I am still trying to make a decision about the car. I am not buying the Toyota Carolla. I am now trying to decide if I should keep the 4runner or just go ahead and file chapter 7. I have two more years left to pay on the 4runner but 598.81 is killing me. I can afford the rest of my bills but with Chapter 7 it would wipe everything out. I love my 4Runner but it has 139K miles on it and it has a bad Catalytic Converter. So I don't know what to do. I welcome all the help I can get on here. Thanks

[jetsfan2010]

Thank you sooo much for your response! To be honest with you I am still trying to make a decision about the car. I am not buying the Toyota Carolla. I am now trying to decide if I should keep the 4runner or just go ahead and file chapter 7. I have two more years left to pay on the 4runner but 598.81 is killing me. I can afford the rest of my bills but with Chapter 7 it would wipe everything out. I love my 4Runner but it has 139K miles on it and it has a bad Catalytic Converter. So I don't know what to do. I welcome all the help I can get on here. Thanks

Have u priced the cost to fix the issues on the 4runner? The good part about that car(if there is one) is you KNOW your car, and you know the problems it has. If you qualify for a 7, then give serious thought to possibly including everything in the 7, getting a small daily driver car for maybe 6 months, then after the bk is fully discharged, rebuilding your credit with a new loan. You would likely get a better financing options then

[Rozi]

Yes, I was quoted with a price of 2K to fix my car. My car on the nada website is only worth 13K and I still owe 23K on it through Santander. That is why I am scared to file a chapter 7 because I need a car to drive back and forth to work. That is why I was trying to buy a car before I file. It's hard to buy a car though when you have an open car loan already so that is why I am going back and forth. The total debt including my car is 37K. I didn't think that was enough to file chapter 7. Plus I filed Chapter 7 10 years ago and it's about to drop off my credit report so I am depressed about filing again. You are right about the car though. I know what is wrong with my car. If I were to buy another car I would have no idea what was wrong with it and it could be a lemon.

Have u priced the cost to fix the issues on the 4runner? The good part about that car(if there is one) is you KNOW your car, and you know the problems it has. If you qualify for a 7, then give serious thought to possibly including everything in the 7, getting a small daily driver car for maybe 6 months, then after the bk is fully discharged, rebuilding your credit with a new loan. You would likely get a better financing options then

[bcohen]

I still stand by my previous advice. Quit paying on the 4-Runner and save your money. Park it in a locked garage, or at a friend's house to reduce the chance of it being reposessed quickly. Save your money and buy an older car in good condition for $2k-$3k. Even if it needs a couple thousand in repairs in a year or two of ownership, you're still way ahead of the game. Besides, most cars that people are selling are not lemons--especially if the same person has owned the car for many years. Now if the person just bought it not too long ago, and/or the car has had many owners in its lifetime then you know there's something wrong with it.