Voluntary Reposession??

[brwngrl83]

Advice needed ASAP. I currently have an open auto loan for a 04 Dodge Intrepid through Credit Acceptance. The car no longer runs; the head gasket is blown and it isn't worth it to spend the large amount of money to fix it. I am upside down on the loan and behind 3 payments. I spoke with the finance company and they stated that I could do a "voluntary surrender". They would have someone come pick up the car, sell it at an auction and apply the proceeds to the balance. I would then be responsible for paying off the remainder of the loan. My concern is that this is going to show up as a reposession on my credit report. I have been driving a rental car since the car gave out and will need to get a reliable car soon to go to work. My credit is poor right now but I have once secured credit card and a store credit card in good standing. I also have high income. My question is, how badly would this reposession hurt my credit? Would I be able to get an auto loan with this repo on my report? Should I just file for chapter 7 bankruptcy instead letting the car get repo'd? Help!!

[BRBiz]

A repo is a repo,voluntary just hurts a little less.. It would be almost impossible to get another auto loan right after a repo. You would need at least 3 to 6 months and its still hard. What would filing bankruptcy do to get you another car?

 

Just go to a dealer that deals with Credit Acceptance and get another loan!

[RedHairedLady]

I wouldn't use Credit Acceptance again, if I were you. My husband and I had a newer, decent vehicle financed through Ally, that was repoed in December. We needed another vehicle for my husband to get back and forth to work, and ended up financing an older, not so nice one through Credit Acceptance in February, as we couldn't get approved with anyone else. I regret it already.

 

Our repoed vehicle was sold at auction in January, and we have a $6,500 deficiency balance that we owe on it. It shows as a charge off on our credit reports. Ally charged our account off right after the auction, and sold the balance to a collection agency. I don't know what our credit scores were right before the repo, but I'm sure they took a big hit afterwards.

 

Bankruptcy might be a good option for you, if you have a lot of other debt that you can't afford to pay, that can be discharged in a bankruptcy. It would also wipe out any deficiency balance on the repoed vehicle. Although, whether you could do a Chapter 7 (as opposed to a 13) would depend in part on your income. If your income is high, that might force you into a Chapter 13.

 

I've read lots of stuff here on CB, from people who have been able to be financed for cars at much better rates, after a bankruptcy, as compared to before, even with a repo on their credit report. Talk to hrguy - he's mentioned being successful in getting financed for a nice car after bankruptcy. Filing for bankruptcy doesn't have to be the end of the world, nor does it mean you'll never be able to buy a car with a good lender at a good rate, ever again.

 

Good luck!

Edited March 16, 2013 by RedHairedLady

[MarvBear]

You will get better advice on this topic in the main credit forum. Lets move it there.

[BRBiz]

I wouldn't use Credit Acceptance again, if I were you. My husband and I had a newer, decent vehicle financed through Ally, that was repoed in December. We needed another vehicle for my husband to get back and forth to work, and ended up financing an older, not so nice one through Credit Acceptance in February, as we couldn't get approved with anyone else. I regret it already.

 

Our repoed vehicle was sold at auction in January, and we have a $6,500 deficiency balance that we owe on it. It shows as a charge off on our credit reports. Ally charged our account off right after the auction, and sold the balance to a collection agency. I don't know what our credit scores were right before the repo, but I'm sure they took a big hit afterwards.

 

Bankruptcy might be a good option for you, if you have a lot of other debt that you can't afford to pay, that can be discharged in a bankruptcy. It would also wipe out any deficiency balance on the repoed vehicle. Although, whether you could do a Chapter 7 (as opposed to a 13) would depend in part on your income. If your income is high, that might force you into a Chapter 13.

 

I've read lots of stuff here on CB, from people who have been able to be financed for cars at much better rates, after a bankruptcy, as compared to before, even with a repo on their credit report. Talk to hrguy - he's mentioned being successful in getting financed for a nice car after bankruptcy. Filing for bankruptcy doesn't have to be the end of the world, nor does it mean you'll never be able to buy a car with a good lender at a good rate, ever again.

 

Good luck!

CAC would be a last resort obviously but even if you file bankruptcy your still with out a car for months and months till the BK is discharged. If you can wait that long go for it if you have a lot of debt.

 

As much as every one hates CAC the problem isn't so much with them as it is with the dealership where you bought the vehicle. There is a lot of shady dealerships out there and a lot of them use CAC but there is also a lot of good dealers with good cars that use them also. So its not really CAC its the dealership. No different then if you buy a crappy used car with a normal lender , you would still be in the same boat with a useless car and a loan. Really the dealership is losing out when you don't pay for your car though CAC because of the way they work there loans so its really in the best interest of the dealership to sell a reliable car but a lot just don't care.

[RedHairedLady]

 

I wouldn't use Credit Acceptance again, if I were you. My husband and I had a newer, decent vehicle financed through Ally, that was repoed in December. We needed another vehicle for my husband to get back and forth to work, and ended up financing an older, not so nice one through Credit Acceptance in February, as we couldn't get approved with anyone else. I regret it already.

 

Our repoed vehicle was sold at auction in January, and we have a $6,500 deficiency balance that we owe on it. It shows as a charge off on our credit reports. Ally charged our account off right after the auction, and sold the balance to a collection agency. I don't know what our credit scores were right before the repo, but I'm sure they took a big hit afterwards.

 

Bankruptcy might be a good option for you, if you have a lot of other debt that you can't afford to pay, that can be discharged in a bankruptcy. It would also wipe out any deficiency balance on the repoed vehicle. Although, whether you could do a Chapter 7 (as opposed to a 13) would depend in part on your income. If your income is high, that might force you into a Chapter 13.

 

I've read lots of stuff here on CB, from people who have been able to be financed for cars at much better rates, after a bankruptcy, as compared to before, even with a repo on their credit report. Talk to hrguy - he's mentioned being successful in getting financed for a nice car after bankruptcy. Filing for bankruptcy doesn't have to be the end of the world, nor does it mean you'll never be able to buy a car with a good lender at a good rate, ever again.

 

Good luck!

CAC would be a last resort obviously but even if you file bankruptcy your still with out a car for months and months till the BK is discharged. If you can wait that long go for it if you have a lot of debt.

 

As much as every one hates CAC the problem isn't so much with them as it is with the dealership where you bought the vehicle. There is a lot of shady dealerships out there and a lot of them use CAC but there is also a lot of good dealers with good cars that use them also. So its not really CAC its the dealership. No different then if you buy a crappy used car with a normal lender , you would still be in the same boat with a useless car and a loan. Really the dealership is losing out when you don't pay for your car though CAC because of the way they work there loans so its really in the best interest of the dealership to sell a reliable car but a lot just don't care.

Hmmm, good points. But I've read that dealerships that use CAC generally mark up the price of the vehicle quite a bit, sometimes as much as a few thousand dollars, to cover an upfront fee that CAC charges them. If that's the case, and the OP uses CAC again, she might find herself stuck in an upside down auto loan at a high interest rate, which she can't refinance. Personally, I think if she wants to file for bankruptcy, she might be better off just renting cars until the bankruptcy is done, and then try to buy a car, with a good lender.

 

I've also read, and maybe you or the OP can clarify if this is true, that CAC doesn't generally report to the credit bureaus. If that's the case, then getting a loan through them won't even help improve someone's credit, even if they make their payments on time every month. They'll have no good auto loan payment history showing on their credit reports, to help with financing another car in the future.

Edited March 16, 2013 by RedHairedLady

[BRBiz]

 

 

 

I wouldn't use Credit Acceptance again, if I were you. My husband and I had a newer, decent vehicle financed through Ally, that was repoed in December. We needed another vehicle for my husband to get back and forth to work, and ended up financing an older, not so nice one through Credit Acceptance in February, as we couldn't get approved with anyone else. I regret it already.

 

Our repoed vehicle was sold at auction in January, and we have a $6,500 deficiency balance that we owe on it. It shows as a charge off on our credit reports. Ally charged our account off right after the auction, and sold the balance to a collection agency. I don't know what our credit scores were right before the repo, but I'm sure they took a big hit afterwards.

 

Bankruptcy might be a good option for you, if you have a lot of other debt that you can't afford to pay, that can be discharged in a bankruptcy. It would also wipe out any deficiency balance on the repoed vehicle. Although, whether you could do a Chapter 7 (as opposed to a 13) would depend in part on your income. If your income is high, that might force you into a Chapter 13.

 

I've read lots of stuff here on CB, from people who have been able to be financed for cars at much better rates, after a bankruptcy, as compared to before, even with a repo on their credit report. Talk to hrguy - he's mentioned being successful in getting financed for a nice car after bankruptcy. Filing for bankruptcy doesn't have to be the end of the world, nor does it mean you'll never be able to buy a car with a good lender at a good rate, ever again.

 

Good luck!

 

CAC would be a last resort obviously but even if you file bankruptcy your still with out a car for months and months till the BK is discharged. If you can wait that long go for it if you have a lot of debt.

As much as every one hates CAC the problem isn't so much with them as it is with the dealership where you bought the vehicle. There is a lot of shady dealerships out there and a lot of them use CAC but there is also a lot of good dealers with good cars that use them also. So its not really CAC its the dealership. No different then if you buy a crappy used car with a normal lender , you would still be in the same boat with a useless car and a loan. Really the dealership is losing out when you don't pay for your car though CAC because of the way they work there loans so its really in the best interest of the dealership to sell a reliable car but a lot just don't care.

Hmmm, good points. But I've read that dealerships that use CAC generally mark up the price of the vehicle quite a bit, sometimes as much as a few thousand dollars, to cover an upfront fee that CAC charges them. If that's the case, and the OP uses CAC again, she might find herself stuck in an upside down auto loan at a high interest rate, which she can't refinance. Personally, I think if she wants to file for bankruptcy, she might be better off just renting cars until the bankruptcy is done, and then try to buy a car, with a good lender.

 

I've also read, and maybe you or the OP can clarify if this is true, that CAC doesn't generally report to the credit bureaus. If that's the case, then getting a loan through them won't even help improve someone's credit, even if they make their payments on time every month. They'll have no good auto loan payment history showing on their credit reports, to help with financing another car in the future.

To my understanding of how they work they don't charge fee's per say. But do have a yearly fee or some thing. But they only advance a portion of the money from the loan to the dealer and then as the customer makes payments the dealership gets the rest as they go. Kinda like a buy here pay here type place but with a lender. So if you don't pay the dealership really loses out and CAC doesn't lose much if anything.. This is why your downpayment varies by dealership. One dealer may only want 20% but others may want 30%,40% or even more because between that downpayment and the advance the dealer wants to atleast get what they paid for the car back right away. I helped my brother in law look for a car so I learned a lot about them when he had no other choice but them a while back. So if you find a good car at a good price you really won't be upside down that much if any. You just need to shop around. You know CAC will approve you now you just need to find a good dealer and have a decent down payment usually around $2000 to $3000 anything less will just get you a chocolate box.

 

They do report to credit agencies..

[RedHairedLady]

 

 

 

 

I wouldn't use Credit Acceptance again, if I were you. My husband and I had a newer, decent vehicle financed through Ally, that was repoed in December. We needed another vehicle for my husband to get back and forth to work, and ended up financing an older, not so nice one through Credit Acceptance in February, as we couldn't get approved with anyone else. I regret it already.

 

Our repoed vehicle was sold at auction in January, and we have a $6,500 deficiency balance that we owe on it. It shows as a charge off on our credit reports. Ally charged our account off right after the auction, and sold the balance to a collection agency. I don't know what our credit scores were right before the repo, but I'm sure they took a big hit afterwards.

 

Bankruptcy might be a good option for you, if you have a lot of other debt that you can't afford to pay, that can be discharged in a bankruptcy. It would also wipe out any deficiency balance on the repoed vehicle. Although, whether you could do a Chapter 7 (as opposed to a 13) would depend in part on your income. If your income is high, that might force you into a Chapter 13.

 

I've read lots of stuff here on CB, from people who have been able to be financed for cars at much better rates, after a bankruptcy, as compared to before, even with a repo on their credit report. Talk to hrguy - he's mentioned being successful in getting financed for a nice car after bankruptcy. Filing for bankruptcy doesn't have to be the end of the world, nor does it mean you'll never be able to buy a car with a good lender at a good rate, ever again.

 

Good luck!

CAC would be a last resort obviously but even if you file bankruptcy your still with out a car for months and months till the BK is discharged. If you can wait that long go for it if you have a lot of debt.

As much as every one hates CAC the problem isn't so much with them as it is with the dealership where you bought the vehicle. There is a lot of shady dealerships out there and a lot of them use CAC but there is also a lot of good dealers with good cars that use them also. So its not really CAC its the dealership. No different then if you buy a crappy used car with a normal lender , you would still be in the same boat with a useless car and a loan. Really the dealership is losing out when you don't pay for your car though CAC because of the way they work there loans so its really in the best interest of the dealership to sell a reliable car but a lot just don't care.

Hmmm, good points. But I've read that dealerships that use CAC generally mark up the price of the vehicle quite a bit, sometimes as much as a few thousand dollars, to cover an upfront fee that CAC charges them. If that's the case, and the OP uses CAC again, she might find herself stuck in an upside down auto loan at a high interest rate, which she can't refinance. Personally, I think if she wants to file for bankruptcy, she might be better off just renting cars until the bankruptcy is done, and then try to buy a car, with a good lender.

 

I've also read, and maybe you or the OP can clarify if this is true, that CAC doesn't generally report to the credit bureaus. If that's the case, then getting a loan through them won't even help improve someone's credit, even if they make their payments on time every month. They'll have no good auto loan payment history showing on their credit reports, to help with financing another car in the future.

To my understanding of how they work they don't charge fee's per say. But do have a yearly fee or some thing. But they only advance a portion of the money from the loan to the dealer and then as the customer makes payments the dealership gets the rest as they go. Kinda like a buy here pay here type place but with a lender. So if you don't pay the dealership really loses out and CAC doesn't lose much if anything.. This is why your downpayment varies by dealership. One dealer may only want 20% but others may want 30%,40% or even more because between that downpayment and the advance the dealer wants to atleast get what they paid for the car back right away. I helped my brother in law look for a car so I learned a lot about them when he had no other choice but them a while back. So if you find a good car at a good price you really won't be upside down that much if any. You just need to shop around. You know CAC will approve you now you just need to find a good dealer and have a decent down payment usually around $2000 to $3000 anything less will just get you a chocolate box.

 

They do report to credit agencies..

That makes sense, and clarifies a lot of things for me.

[MarvBear]

Advice needed ASAP. I currently have an open auto loan for a 04 Dodge Intrepid through Credit Acceptance. The car no longer runs; the head gasket is blown and it isn't worth it to spend the large amount of money to fix it. I am upside down on the loan and behind 3 payments. I spoke with the finance company and they stated that I could do a "voluntary surrender". They would have someone come pick up the car, sell it at an auction and apply the proceeds to the balance. I would then be responsible for paying off the remainder of the loan. My concern is that this is going to show up as a reposession on my credit report. I have been driving a rental car since the car gave out and will need to get a reliable car soon to go to work. My credit is poor right now but I have once secured credit card and a store credit card in good standing. I also have high income. My question is, how badly would this reposession hurt my credit? Would I be able to get an auto loan with this repo on my report? Should I just file for chapter 7 bankruptcy instead letting the car get repo'd? Help!!

 

 

Bump for the OP for some help.

[LKH]

 

I wouldn't use Credit Acceptance again, if I were you. My husband and I had a newer, decent vehicle financed through Ally, that was repoed in December. We needed another vehicle for my husband to get back and forth to work, and ended up financing an older, not so nice one through Credit Acceptance in February, as we couldn't get approved with anyone else. I regret it already.

 

Our repoed vehicle was sold at auction in January, and we have a $6,500 deficiency balance that we owe on it. It shows as a charge off on our credit reports. Ally charged our account off right after the auction, and sold the balance to a collection agency. I don't know what our credit scores were right before the repo, but I'm sure they took a big hit afterwards.

 

Bankruptcy might be a good option for you, if you have a lot of other debt that you can't afford to pay, that can be discharged in a bankruptcy. It would also wipe out any deficiency balance on the repoed vehicle. Although, whether you could do a Chapter 7 (as opposed to a 13) would depend in part on your income. If your income is high, that might force you into a Chapter 13.

 

I've read lots of stuff here on CB, from people who have been able to be financed for cars at much better rates, after a bankruptcy, as compared to before, even with a repo on their credit report. Talk to hrguy - he's mentioned being successful in getting financed for a nice car after bankruptcy. Filing for bankruptcy doesn't have to be the end of the world, nor does it mean you'll never be able to buy a car with a good lender at a good rate, ever again.

 

Good luck!

CAC would be a last resort obviously but even if you file bankruptcy your still with out a car for months and months till the BK is discharged. If you can wait that long go for it if you have a lot of debt.

 

As much as every one hates CAC the problem isn't so much with them as it is with the dealership where you bought the vehicle. There is a lot of shady dealerships out there and a lot of them use CAC but there is also a lot of good dealers with good cars that use them also. So its not really CAC its the dealership. No different then if you buy a crappy used car with a normal lender , you would still be in the same boat with a useless car and a loan. Really the dealership is losing out when you don't pay for your car though CAC because of the way they work there loans so its really in the best interest of the dealership to sell a reliable car but a lot just don't care.

 

If you were to file bk, you'll find your mailbox flooded with offers to finance a car. You don't need to wait for discharge to do that. However, it might be smart to try and get another car now before the repo is done and reported.

[BRBiz]

I wouldn't use Credit Acceptance again, if I were you. My husband and I had a newer, decent vehicle financed through Ally, that was repoed in December. We needed another vehicle for my husband to get back and forth to work, and ended up financing an older, not so nice one through Credit Acceptance in February, as we couldn't get approved with anyone else. I regret it already.

 

Our repoed vehicle was sold at auction in January, and we have a $6,500 deficiency balance that we owe on it. It shows as a charge off on our credit reports. Ally charged our account off right after the auction, and sold the balance to a collection agency. I don't know what our credit scores were right before the repo, but I'm sure they took a big hit afterwards.

 

Bankruptcy might be a good option for you, if you have a lot of other debt that you can't afford to pay, that can be discharged in a bankruptcy. It would also wipe out any deficiency balance on the repoed vehicle. Although, whether you could do a Chapter 7 (as opposed to a 13) would depend in part on your income. If your income is high, that might force you into a Chapter 13.

 

I've read lots of stuff here on CB, from people who have been able to be financed for cars at much better rates, after a bankruptcy, as compared to before, even with a repo on their credit report. Talk to hrguy - he's mentioned being successful in getting financed for a nice car after bankruptcy. Filing for bankruptcy doesn't have to be the end of the world, nor does it mean you'll never be able to buy a car with a good lender at a good rate, ever again.

 

Good luck!

 

CAC would be a last resort obviously but even if you file bankruptcy your still with out a car for months and months till the BK is discharged. If you can wait that long go for it if you have a lot of debt.

As much as every one hates CAC the problem isn't so much with them as it is with the dealership where you bought the vehicle. There is a lot of shady dealerships out there and a lot of them use CAC but there is also a lot of good dealers with good cars that use them also. So its not really CAC its the dealership. No different then if you buy a crappy used car with a normal lender , you would still be in the same boat with a useless car and a loan. Really the dealership is losing out when you don't pay for your car though CAC because of the way they work there loans so its really in the best interest of the dealership to sell a reliable car but a lot just don't care.

 

If you were to file bk, you'll find your mailbox flooded with offers to finance a car. You don't need to wait for discharge to do that. However, it might be smart to try and get another car now before the repo is done and reported.[/

 

Her current loan is 60 days late and she has really bad credit who would touch a second new loan??

[mk_378]

If your only debt is this car, don't file BK. The damage would be more than it's worth.

 

They may bring some papers in this voluntary repo. It is probably not in your best interest to sign them, as likely you will be giving up your rights to fight on a technicality later. Better to just have them take the car. Though since they know it does not run, they may not consider it worth what it would cost to come get it. You can end up in a standoff that lasts for years.

[BRBiz]

If your only debt is this car, don't file BK. The damage would be more than it's worth.

 

They may bring some papers in this voluntary repo. It is probably not in your best interest to sign them, as likely you will be giving up your rights to fight on a technicality later. Better to just have them take the car. Though since they know it does not run, they may not consider it worth what it would cost to come get it. You can end up in a standoff that lasts for years.

I think with out a doubt CAC will take it no matter what and auction off even if half the car was missing. The dealership really eats good chunk of of the losemore then CAC.

[brwngrl83]

Thanks for all of the advice. I decided to have CAC come pick up the vehicle. They did not ask me to sign any paperwork, they just sent someone to pick it up. Other than the auto loan, I have some student loans that are paid on time and two credit cards that are both paid on time. I've decided that filing for bankruptcy is not the best option. I am thinking of going to an auction with about $4000 and trying to find a reliable car there. Do you guys know anything about public auto auctions?

[BRBiz]

You don't want to buy a car at auction unless your a mechanic or have the money for any repairs needed which could be pricey. You could be buying a car just like yours!

 

Your better off searching the online ads and find a good private owner car.

Edited March 26, 2013 by Brndnh721

[futurehomeowner?]

most auctions also require a dealers license so make sure yours doesnt before going.

[BRBiz]

Thanks for all of the advice. I decided to have CAC come pick up the vehicle. They did not ask me to sign any paperwork, they just sent someone to pick it up. Other than the auto loan, I have some student loans that are paid on time and two credit cards that are both paid on time. I've decided that filing for bankruptcy is not the best option. I am thinking of going to an auction with about $4000 and trying to find a reliable car there. Do you guys know anything about public auto auctions?

I have heard CAC is very quick to go after wages for the balance owed on loans so that is one thing to keep in mind especially if your in a garnishment friendly state.