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NCD! (and auto financing questions)

MatticusMania

MatticusMania

LANA! HE REMEMBERS ME!
Sep 10, 2008
9,565
152
42
Pomona, SoCal
www.facebook.com
#1
Im sure youve all noticed I wasnt around the last few days.

Well, Sunday afternoon my transmission disappeared. Yup, just vanished... Im driving and all of a sudden I am driving no longer, but rather coasting to the side of the road. Engine revs, speedometer goes up (huh?) but the gears dont engage. 30 minutes later the trans does engage and I drive it home. Monday I had it towed to a shop for inspection, as the trans would not engage again.

The shop wanted to replace the trans and then look into starter repairs (car has intermittent starter issues). The repairs were too costly to bother putting money into the car, so I went and got a new (used) one. Attached below is my new (to me) 2007 Kia Spectra with just 13K miles on it.

So, now what to do with my previous car... its still at the mechanics, and I still owe about $3000 on it. My mother advised I call the lienholder and have them repo the car. They'll sell it at auction, take that off of what I owe them, and then I'll owe the balance. I talked with someone at the bank this morning who confirmed this action.

My questions... how would having a car repo'd effect my credit, or what other effects might I expect because of it?
What other possible recourse do I have to get rid of my previous car and bring down the balance that I owe on it? Just looking for some other posssibilities here.
 
#3
macaroni tony said:
First!

My brother, sister and cousin have all done this; their credit was adversely affected, but I don't know how bad the damage was. Congrats on teh new ride
Click to expand...

Thanks! I also managed to get 3 days off of work, paid (vacation time).
My brother also did this when her wrecked his friends motorcycle. After they auctioned it off he still owed like $1500. His credit didnt seem to get hit too hard, I think.
 
#4
1. Have the transmission and starter replaced.
2. Sell the car for market value (informing the buyer of your recent repairs, of course...)
3. Hope that market value for a used car is more than the $3K you still owe on it.
4. Pay off the car, and apply the rest of the money to your new car, especially if you bought it on credit.

Other details required:
What brand/year/condition was old car?
Cost of repairs?
Have the mechanics initiated the repairs yet?
 
#6
Chebass88 said:
1. Have the transmission and starter replaced.
2. Sell the car for market value (informing the buyer of your recent repairs, of course...)
3. Hope that market value for a used car is more than the $3K you still owe on it.
4. Pay off the car, and apply the rest of the money to your new car, especially if you bought it on credit.

Other details required:
What brand/year/condition was old car?
Cost of repairs?
Have the mechanics initiated the repairs yet?
Click to expand...

This just isnt cost efficient for me. The repairs alone would be upwards of what I still owe on the car. The market value of that car (2004 Saturn Ion with 130k miles) is probably around what I owe, the repairs would put me right in the same position I am now, about $3500 or so in debt.
The estimate for the trans alone was around $3k. They havent initiated repairs, nor will they since I told them not to.

PSPookie said:
Part it out and sell it in the classifieds.
Click to expand...

That was a thought as well, though Im not sure how long it would take to recoup $3500 in parts. I also dont have a place to keep the car once I take it back from the mechanic.
 
#8
If you cannot afford to complete the repairs on the vehicle, then your car is effectively dead. You can donate it, take the value of the vehicle (generally valued as though it were working) as a tax write off, and then find ways to pay off the mechanic and the difference in the car value.

It isn't really worth anything at auction in non-running condition, so taking the value as a tax write-off might be the greatest value longer term. This wouldn't affect your credit, too.

Either way you are out a bunch of money in the short term.
 
#10
Skitch it! said:
Have someone else look it over to make sure it's not just the clutch that has gone, I presume it is manual?
Click to expand...

Nein, its auto-matic.

Angus said:
If you cannot afford to complete the repairs on the vehicle, then your car is effectively dead. You can donate it, take the value of the vehicle (generally valued as though it were working) as a tax write off, and then find ways to pay off the mechanic and the difference in the car value.

It isn't really worth anything at auction in non-running condition, so taking the value as a tax write-off might be the greatest value longer term. This wouldn't affect your credit, too.
Click to expand...

Hmm, this may be an option.

Either way you are out a bunch of money in the short term.
Click to expand...

Indeed. Ive accepted this as fact, already. Now, Im just looking into the best way to bring my balance down and get the car off my hands.
 
#11
It will ruin your credit score. (Minus 100 or so points, and you can't get a home loan for three years after the repo.) what I'd do is go to edkunds.com, and see what it's worth both fixed and broken, and if the difference is greater than the repairs, then fix and sell it if you can.

It's a tough situation to be in, of you don't want to ruin your credit.
 
#14
Pupiit said:
It will ruin your credit score. (Minus 100 or so points, and you can't get a home loan for three years after the repo.) what I'd do is go to edkunds.com, and see what it's worth both fixed and broken, and if the difference is greater than the repairs, then fix and sell it if you can.

It's a tough situation to be in, of you don't want to ruin your credit.
Click to expand...

Honestly, Im not too concerned with my credit score. I was just curious as to what effect it may have on it. I dont plan on getting any kind of loan in the next 3 years.
 
#16
Pilgrim said:
Pay it off. Don't take a hit on your credit. It's your car...so pay it off and take your lumps.

Tow it home and sell it for what you can get without the transmission working...or if an auto recycler will pay a few bucks, have it towed there.
Click to expand...

Thats the thing... I cant afford to just pay off the balance right now. I cant sell it as the bank still owns the it, and they have the pink slip.

Im not trying to get out of my financial responsibility or anything, but I have no place to keep another car and am not able to sell it until its paid off.

Believe me, Im taking my lumps in droves here.
 
#18
Can you trade the old car onto the new one, eat the amount you owe and add it to the loan, putting yourself underwater on it?? It's not a good idea, but it's better than taking the credit hit.

BTW - what I would have done is go to a wrecking yard for a transmission that would fit the old car and have the shop install it. That would have been under $2000 total. While they were doing that, they could have dropped in a rebuilt starter in minutes.
 
#19
Pilgrim said:
Can you trade the old car onto the new one, eat the amount you owe and add it to the loan, putting yourself underwater on it?? It's not a good idea, but it's better than taking the credit hit.
Click to expand...

Thats what I originally wanted to do, but I couldnt get the financiers at the dealer to accept the trade. One thing I may try and do, since my new car is being financed through the same bank the previous one was, is try and add what I owe onto the new car. It may be an option, it may not be. If thats the case I could then sell the car for whatever I can get for it, and use that as a large payment on my new loan. If.

Pilgrim said:
BTW - what I would have done is go to a wrecking yard for a transmission that would fit the old car and have the shop install it. That would have been under $2000 total. While they were doing that, they could have dropped in a rebuilt starter in minutes.
Click to expand...

Sinking even $2000 into the car is probably not the best of ideas. Id then owe $5500, and the car is only valued around $1500.
 
#20
MatticusMania said:
The estimate for the trans alone was around $3k. They havent initiated repairs, nor will they since I told them not to.
Click to expand...

$3k for a saturn tranny? really? I think you are being hosed man.. my buddy's 2006 Mustang tranny was less than that.

Oh wait... Saturn is no longer right? that may be the problem... i still think that's a totally unrealistic amount for a 2004 Saturn. have you done research on where you took the car for work?

The "donation" thing is shaky too, i've done that with a vehicle and it wasn't even worth it. i would've been better off paying the tow lot fee, replacing the catalytic converter and actually getting something out of it. Instead i got a useless piece of paper...
 

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