OK, so here's the situation as clearly cut as I can share it. I honestly am thinking of allowing the bank to take my car and repossess it because it's not worth anything right now and it's too expensive to repair.
- I bought a 2011 Jeep Patriot in 2017 and financed the purchase with Capital One for ~$185 per month.
- Last March it broke down and I was told by the dealer that it would cost me $6000 for a new transmission.
- It's been towed back home and sat there ever since.
- Another mechanic said he can replace the transmission for ~$3400
- I currently owe $5500 on the vehicle at this point, but because it's undrivable and hasn't moved in months, it's worth like what... $850? I mean it honestly can't be worth that much and it's certainly not worth $5500 to me at this point.
I've looked at a few options and I understand the following: - I can allow the lender to take the car under "voluntary repossession" - The lender could charge me repo and auction fees - The lender could also potentially charge me other fees like repair fees if they pay to repair the vehicle - Whatever the lender sells the car for at auction, which could be that shitty $850, is taken out of my loan - If I default on the loan along with the repossession, etc, it will hurt my credit for a while, but I could negotiate paying off the debt for less than $5500 at that point with a credit collector instead of the lender.
Ultimately, I want to get rid of this car and not have to pay $5500 fucking dollars for learning the mistake of never, ever financing a used car. I honestly could pay the damn thing off if I tapped into Savings, but I'm also terrified of doing that because it's fucking COVID-19 time and I might need Savings if I get fired or something awful.
Any thoughts, advice, or experiences are welcome. Should I let the bank take my car, or should I pay it off and risk draining my savings for a shitty lesson? What are the worst circumstances I could encounter if I let the bank take the car?
I have decent credit and a good job, and I've got a 97% on time payments record. This sucks and I've been paying $185 monthly for a car just sitting in my yard. Absolutely crazy upside down on this vehicle. What should I do?
Quick edit: It’s 4WD and a CVT transmission just for folks recommending I do the repair myself. I would totally give it a shot if you think YouTube and the Haynes manual will give me enough data to do it.
Submitted April 18, 2020 at 08:11PM by cuppa https://ift.tt/2xDYnTq
