Business Q&A

okay my husband has a truck which he doesnt want anymore it eats a lot of gas! so the more money. he wants to lease another car that doesnt eat so much gas and turn in his truck and simply tell the dealer he cannot afford the truck anymore. we want to know how bad will that mess up his credit? keeping in mind he has leased another car will be making monthly payments for that car and also he has credit cards he will keep paying. also he cant turn in his car and get something else because he owes too much on the truck. so doing as said how bad will his credit mess up? please help us do you recommend he does this? safe or not? not good for your credit? keep the truck? or lease a car and turn in the truck? sorry so long. thank you for taking the time to read this

---

answer from chinatrade114.com small business QA

---

Auto finance is what I do for a living and they can but only if they take him to court first and get a judgment, at that point they can garnish wages (if your State allows it), attach bank accounts and file liens on any other property he may own like cars, boats, land and homes does not matter if the property is joint.

All of this will show on his credit for the next 7 years and make it very hard to get any other type of loans without making massive down payments, paying huge fees and State maximum interest rates.

He would be much better off selling the vehicle and taking out a loan for the balance, that way his credit is still intact.

---

answer from chinatrade114.com small business QA

---

What state do you live in, for instance in texas they cannot take you to court, they can not garnish your wages all they can do is verablly threaten you and send you nasty letters all they can do is ruin your credit for 7 years.

---

answer from chinatrade114.com small business QA

---

This is all too common lately. I guess it boils down to what is more important to you. Your credit rating or your gas money. I understand the price of fuel has effected everyone and some people have to make some hard decisions.

As far as your credit, this will have an effect for about the next 7 years or so. You will be hardest hit intially when the REPO hits your credit report. The good news is the algorithms used to calculate credit scores for the 3 major bureaus really only takes into account what you have done in the last 24 months. Anything more than 24 months old has a small to negligable effect on your credit score even though the bad lease/loan will stay there for around 7 years. The bad news is it will cost more to borrow money again in the future. So even though you might be saving in gas, any future loans or credit will probably come with higher finance charges and you might even get turned down for loans you previously would have easily qualified for.

It all depends on your situation but I have had clients do this only to have the repo ruin opportunities or chances for credit a few years down the road. They had an opportunity to buy a house cheap and knew a buyer who would move in relatively quickly. The loan got turned down and they missed out on an opportunity to make ten%26#039;s of thousands of dollars. I%26#039;ve had other clients recover nicely so there is light at the end of the credit tunnel but you need to really think about what your future plans are.

I would keep the truck personally as long as you can afford it. Yes you may need to cut back in other areas but it may be worth it in the long run. However, if it keeps you from making that mortgage payment or put food on the table, you might want to consider letting the truck go.

As far as how much of an effect it will have on your score, that is hard to tell but in my experience, I%26#039;ve seen a 720 score go down to 590 score after a repo.

Good luck.

---

answer from chinatrade114.com small business QA

---

It will be viewed the same a a repossession although voluntary the exact same just the repo man did not have to come out and get it. So yes credit is shot (expect to be low 500%26#039;s) for 7 years and they will sell it at auction for penny%26#039;s on the dollar, and file suit against you for the remainder, if they get the judgment then wages can be attached along with tax returns etc. Dealer will not take back the truck by the way, but the loan company will.

---

answer from chinatrade114.com small business QA

---

With regard to credit, a voluntary repossession is as bad as a regular repo. It will hurt your score/profile badly for the next several years. Although no one can accurately calculate how many points, you should expect at least a 100-point drop in score.

What is the value of the truck and how much do you owe. If the balance due is close to the trucks value, sell it privately and pay it off even if you have to pay additional funds out of your own pocket. You do not need to have the title to sell it, there is a form you fill out from the DMV to do this.

If this has not happened yet, you should avoid it at all cost. A repossession is one of the worst things that can show on your credit report. Once the vehicle is repossessed, the lender will sell it off in an auction. Not only will they come after you for the difference but they will also add all costs for the repossession, towing, storage, auction, reconditioning, late fees, interest, lawyers and anything else they can think of.

This could amount to several thousand dollars and if you do not pay, they can take you to court, get a judgment and then attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like land and homes

Hope this answers your question.

LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.

---

answer from chinatrade114.com small business QA

---

my husband and his ex got a lemon car and tried to give it back to dealer. dealer refused so they sold it or whatever. dealer still charged them to pay on it. because they didn%26#039;t, it went on their credit as bad. so i would say, find someone to buy it off him and take over the payments. or keep it until it is paid off and do not drive it unless you have a lot of errands to do that require a truck. can the dealer maybe work with him to exchange the truck for a smaller car where he is buying the truck. if they want repeat business and good word of mouth from you guys, they should workd with you. otherwise, dog the company.

Tags: local business, Investing business, Real Estate business

Resource from yahoo answers business question and answer: I've linked my bank account to my paypal account. So I've made a purchase on ebay, and now i just found that i might not enough money in my paypal account to pay for the item. Can paypal take money out of my bank account to cover the extra costs? The...
I'm 16. I'm not picky--just need a job fast. Any suggestions?
When you want to get an apartment or rental house, what do you do? I tried asking a friend and he says that if you don't have a rental history, then you have to have some kind of co-signer. I don't have that. I do have a potential roommate, but he has ...
i meant a law graduate who has practised as a lawyer on civil and criminal side, is there any chance to enter company, law firm or corporate. or that is it necessary to do any other course to become a corporate lawyer?