Surrender lease car?

[troubled]

Hi,

Car was included in BK. Not reaffirmed. No longer can make the $368 payment (honda civic).

How would I go about surrendering the car - buying a used one much cheaper.

Thanks!

[NoMoreCards]

I also surrendered a Honda Civic lease during BK. Great little cars, just more than I can currently afford.

You have options to purchase another car. Here is what I did.
Bought a beater and turned in the lease. (111K miles, 1993 Grand Marquis), no rust and runs great. Once the BK was discharged, I took a 401K loan out and bought a 2004 F250 truck and paid cash for it. I know they recommend against 401K loans, but I couldn't afford the crazy high interest rates and needed this second vehicle. Now, in the event of a job loss I take the IRS hit, but it still leaves me with a nice vehicle with no lien on it.

I looked at a few of those "buy here, pay here" places, and I couldn't stomach the prices or interest rates. So I chose the above. But be flexible and you will come up with options that meet your needs.

Best of luck.

[troubled]

Thanks. do I just bring it to the dealer and turn it in?

[NoMoreCards]

I hung on to my civic until I had the beater to drive. You can do this on your terms, within reason of course. My attorney had me call Honda Financial's bankruptcy department and make arrangements. I offered to drop it at the dealer and they were fine with that. So I drove up there Sunday when I knew they were closed, and put the keys in the envolope for the service desk with a note that it was a surrender vehicle.

They will need you to sign a "surrender" form at the dealer, or via fax. In my case, they faxed it to me I faxed it back.

Quite painless, although sad to see it go it was the right decision for me.

[Kiltie]

I also had a 2007 civic that was leased and not reaffirmed. If you keep paying monthly, honda will continue to let you keep driving the car. I did for about a year after my bankrutcy was discharged. Then I decided it was time to buy another car (used) that I could pay on to increase my credit score. I called my local honda dealer and he told me to just dropped off the car but I would have to sign a mileage statement. It turned out that that was all that was required by me since the car was written off in the bankruptcy. I was not responsible for any damages or excessive wear and tear even though the car was in perfect condition. It was the simplest transaction ever. Buy Here Pay Here are not very good places from what Ive heard. Cars are not checked out very well and some are not reliable, interest rates are very high.

[troubled]

Turned car in. no hassles. bought used car @ 8.5% interest - saving more than $130 a month compared to lease.

[ASUChloe]

When to buy another car?

I have a leased car also, and I feel that BK is inevitable. My lease will run up in a year, if I choose to reaffirm. And a year will be too soon to buy another car, due to interest rates or being denied.

Should I buy a nice, used car now while my credit isn't horrific...and not reaffirm the leased car?

Suggestions?

[troubled]

we wound up having the leased car repod before even getting to surrender it and got a used car right away from a dealer for 8.25% loan.

[LSUTiger32]

The late payments can't hurt you so drive it for a few months while they get mad and eventually come and get it. Sock the money you save from the payments away to purchase a beater.

[LostNFound]

We are in the pre-planning stages of filing BK and my attorney suggested that we try to purchase our leased Auto prior to BK so that we can keep it. My lease is up in September 2010 and we hope to file by May 2010. The problem is that I can't get a loan!! I have 5 charge off's on my credit report (cr.cards) to the tune to 100K. Is it just me or is it supposed to be this hard to obtain financing? The attorney was so "Matter of Fact" about it that I assumed we would pay a higher interest rate and be done with it. I'm getting discouraged and a little concerned when I read the comment above that the leased auto was repo'd!! Did you make the payments? I dont' know if I'm ready for something like that to happen just yet. Wish I could have planned this better! ha! As if there is a plan to this madness....jeesh...

[MakinMeCrazy]

Hello
I am so glad I found this post!!!!!!!!!!!! we have a leased Mazda which the lease ends in May 2010...........we paid the lease in full when we got the car, it now has of course over miles on it, this is my question.......we were told that we could lease it monthly after the lease was up, before I opt for that........I plan to file BK in July 2010, if I give back the leased car in May as per our contract, and then file BK in JULY will the lease company try to charge me for the overage? or show up at my 341 saying I turned ina car with over miles in May ...knowing I would be filing in Aug for BK? In other words might they show up at my 341? I would love to keep it leased until I file but I'm afraid to even try that. thank you all in advance