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Thread: Car Loan After Repo; do I have to wait till my next life?

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    Veteran Member Lklucky's Avatar
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    Dizzy Car Loan After Repo; do I have to wait till my next life?

    repo: one year ago/ still paying for that car

    job: dancing

    Question: any chance in hell or what do you think I should do?

    Things to consider: must move in a month to a place where I will either have to take a cab to work or have a car. Within a month I could have a larger down payment to put down on a car than a good credit person would be required to have or I could have a clunker.

    PS: Suzie Orman says =save buy a clunker, no more financing on money that one doesn't have.

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    I like Suze's advice. Save up and pay cash for an inexpensive, safe, economical, reliable vehicle. Rehabilitating your credit situation is probably best done the same methodical way....save regularly, deposit it into a savings account, and slowly build up a relationship with your bank. As time goes on your bank will offer some of their credit products, as you will be a more reliable customer.

    For now, pay off that old repo'd car, get rides, take cabs, take the bus, and save your money. Good luck.

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    Banned Melonie's Avatar
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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    It's an unfortunate fact of life that , despite having received billions of dollars in US taxpayer TARP money, banks have now become extremely stingy in regard to writing new loans. They are still carrying previous loan losses on or off their books, they are expecting accelerating additional losses on all kinds of loans, and they would rather gamble with TARP money in the stock markets than loan it out ( because statistically speaking the probability of loan losses versus interest income is far worse ).

    As a result, new 'consumer credit' applications are being scrutinized like never before. Besides the gov't mandated new regulations i.e. proof of income, bank credit committees are also very reluctant to loan money to any business or individual with less than a stellar credit history. Please don't take this personally, but between your dancing income being difficult to officially document, and your repo incident, the likelihood of being approved for any sort of conventional auto loan is probably next to zero.

    This leaves two major possibilities.

    A - you can seek an auto loan through a 'legalized loan shark' i.e. lenders / auto dealers who specialize in high interest rate loans to subprime borrowers. You can probably get approved for such a subprime auto loan, but you will undoubtedly wind up paying through the proverbial teeth in terms of interest rate / fees / high initial selling price of the vehicle.

    B - you can save up enough cash to buy the vehicle outright without the need for another auto loan. To be honest, paying off your delinquent auto loan is NOT a factor with option B.

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    I got a car loan after a repo (although it appears as something else on my credit report); but my interest rate is really high and now I am trying to refinance it. I also do have a "real" job thugh and a decent credit score (well these days 550 is probably considereed decent)

    So yes, it can be done.. but like Mel said it would be "special financing".
    XoXo Gia
    Danielle Fishell (the Dish): "If the Super-Star thing doesn't work out, Gia makes a great stripper name"

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Quote Originally Posted by Lklucky View Post
    repo: one year ago/ still paying for that car
    Did they give you credit for what the car was worth when they took it back?

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    To the OP, you can find some really nice cars for really cheap if you pay cash. Try doing some research online at like AutoTrader.com or places similar. I found some nice luxury vehicles with good mileage under $7k.

    Or you could find someone who has a dealers license and go to the auto auction with them. Believe me, if only you knew the deals that are out there, why would you want to finance again. Seriously, in this era of economics, it would be naive to try to finance another car. Especially since your interest rate would be astronomically high.

    I only have $5k left on mine and I will NOT finance again. The interest I paid was almost what I paid on the retail price of the car. Not cool. I could've saved that interest and had a down payment on a house.

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    Banned Melonie's Avatar
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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    To the OP, you can find some really nice cars for really cheap if you pay cash. Try doing some research online at like AutoTrader.com or places similar. I found some nice luxury vehicles with good mileage under $7k.
    Yes there are definitely 'deals' to be found right now ... primarily 'distressed sales' by individuals. But purchasing directly from an individual seller will be a 'cash on the barrelhead' transaction.

    Where the dealer / auction market is concerned, the recent 'cash for clunkers' program essentially destroyed tens of thousands of pre-owned vehicles that would otherwise have found their way to the used car market. As a result, dealer / auction prices for good used cars are actually higher now than before the 'cash for clunkers' program went into effect, because good used cars are in shorter supply.


    Did they give you credit for what the car was worth when they took it back?
    Odds are that she was credited with the proceeds of a dealer's auction sale ... LESS the cost of repossession and legal ... which was probably many thousands of dollars less than the car's 'book value'.

    ~

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Quote Originally Posted by greeneyedgrl View Post
    Or you could find someone who has a dealers license and go to the auto auction with them. Believe me, if only you knew the deals that are out there, why would you want to finance again.
    A word of caution; at dealer auctions one finds the cars a new car dealer took as a trade in and didn't want and there is very little one can do to inspect the car; no test drives. Buying form a private seller is good but one must be able to know a reliable car when one sees one. With both of these one can buy a car wholesale.

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    ^^^ Earl is absolutely correct about 'caveat emptor' applying big time where dealer's auction vehicles are concerned. In point of fact, my younger brother is a car dealer ... and has commented that he has quit buying cars at regional dealer's auctions because the prices being bid simply don't leave any room for dealer profit margin even if the vehicle is as good as 'promised'. And if the auction vehicle turns out to have 'problems', the cost of parts and labor he has to invest to make the vehicle legally salable with a dealer's used car warrantee results in a monetary loss.

    However, not every region of the country values used cars at the same price level. My little brother is actually buying cars at dealers auctions in different states i.e. different markets that are 1000 miles away where used vehicles aren't in as short supply, and trucking them back to New York.

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Do you have anyone who could co-sign a loan with you?

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    Veteran Member Lklucky's Avatar
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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Hi everyone, thank you for all of these informed answers;

    Regarding my paying on my delinquent car; basically they could only sell the car at auction for a lot less than its worth like others have said. Even though I am trying to
    do the right thing (bcs I didn't prior) and pay it, in my head I am thinking I could just not pay it and it drops off my credit in 6 yrs anyway (1 yr on)
    After reading through all of the answers here, I realized how little a car really meant to me; like I don't want to have to work/ slave to pay for a car (prob 5-600 with insurance monthly)

    I decided to move to a city where I didn't need a car and instead put half of the amount I would spend on a car (300) towards my new more expensive big city rent and the other half into a savings plan.

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Sounds like you made a smart move

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Big city can also mean scooter - which is a lot cheaper to own and operate.

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Quote Originally Posted by Deogol View Post
    Big city can also mean scooter - which is a lot cheaper to own and operate.
    This is the way the pros do it, bicycle messengers. Get a bicycle for about $800, it will take the pounding of the city but not attract attention. Spray the entire thing flat black, not the drive train. Then get flat orange and lightly spray the spokes and frame. It will be one ugly but serviceable bicycle. Make sure you have quick release wheels and seat to lock with a heavy duty lock. Not only will thieves look else ware but you will get a firm, toned body that may attract a doctor.

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Quote Originally Posted by Lklucky View Post
    Regarding my paying on my delinquent car; basically they could only sell the car at auction for a lot less than its worth like others have said.
    I would get the Kelly Blue Book value of a private sale at the time of the auction. It will be higher than the auction sale; take them to court and claim that as the value. If the court balks take the Kelly Blue Book trade in value the lowest value on a car and claim that. The courts usually accept the KBB as the worth of a car. Knowing the evil that lurks in the world they low balled you on the price of the car.

    Eat the rich.
    Last edited by Earl_the_Pearl; 11-01-2009 at 03:33 PM. Reason: Correct spelling; spelling trolls are not doing their jog.

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    Veteran Member Lklucky's Avatar
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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Quote Originally Posted by Earl_the_Pearl View Post
    This is the way the pros do it, bicycle messengers. Get a bicycle for about $800, it will take the pounding of the city but not attract attention. Spray the entire thing flat black, not the drive train. Then get flat orange and lightly spray the spokes and frame. It will be one ugly but serviceable bicycle. Make sure you have quick release wheels and seat to lock with a heavy duty lock. Not only will thieves look else ware but you will get a firm, toned body that may attract a doctor.
    Thank you; I was thinking I was just going to walk or bus places but this may be an option; LOL a doctor? yeah well that would be a solution for my lack of health insurance coverage...

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    I don't get it....

    Why are you paying for a repossessed car? They want you to finish paying it off and yet they get to resell it. That is double collecting for the same purchase.

    Sue the extorting bastards. You already lost your credit. They took the risk in selling it to you initially. Now they want to eliminate that risk they agreed to? And you get nothing?
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Banned Melonie's Avatar
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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Why are you paying for a repossessed car? They want you to finish paying it off and yet they get to resell it. That is double collecting for the same purchase.
    Welcome to our modern world of zero equity. Undoubtedly at the time that her car loan was far enough delinquent to prompt the repo, between her relatively small down payment + unpaid loan balance + late fees she owed a significantly higher amount than the car was 'worth'. This was likely exacerbated by the repo'd car being disposed of at a dealer's auction rather than a resale ( probably coincided with 'cash for clunkers' new car demand - where the net price on a new car with the 'free' gov't incentive payment depressed prices for 1-2-3 year old used cars that didn't come with a 'free' gov't down payment !).

    In the final analysis, the outstanding loan balance was not satisfied by the proceeds of the vehicle auction sale ... leaving her responsible for paying off the difference despite the fact that the car had been repo'd and sold. This is a very common situation these days, given that many new cars sold over the past few years have been bought using 5 year loans with little or no money down.

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Hopefully this thread exposes the danger one is in when accepting credit.

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Quote Originally Posted by Melonie View Post
    Welcome to our modern world of zero equity....

    In the final analysis, the outstanding loan balance was not satisfied by the proceeds of the vehicle auction sale ... leaving her responsible for paying off the difference despite the fact that the car had been repo'd and sold. This is a very common situation these days, given that many new cars sold over the past few years have been bought using 5 year loans with little or no money down.
    My point is that in return for charging interest on a loan -- which represents overhead, profit and an amount for carrying the risk -- now finance companies now require the risk of loss to be eliminated at a cost to the loan recipient of loss of her vehicle and repayment in full of their previously accepted loss plus a negative report on her permanent credit record card. If they are able to eliminate their risk, then their interest rates must be lowered to compensate for that additional profit opportunity. Where are institutions to oversee such injustices? Once again powerful corporations, backed by laws that their lobbyists have slyly pushed forward, just overwhelm the individual consumer.

    You know, people used to respect most financial corporations (post trust busting era), but now they obviously do not dseserve that previous status.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Senior Member Blackstone's Avatar
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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Quote Originally Posted by threlayer View Post
    My point is that in return for charging interest on a loan -- which represents overhead, profit and an amount for carrying the risk -- now finance companies now require the risk of loss to be eliminated at a cost to the loan recipient of loss of her vehicle and repayment in full of their previously accepted loss plus a negative report on her permanent credit record card. If they are able to eliminate their risk, then their interest rates must be lowered to compensate for that additional profit opportunity. Where are institutions to oversee such injustices? Once again powerful corporations, backed by laws that their lobbyists have slyly pushed forward, just overwhelm the individual consumer.

    You know, people used to respect most financial corporations (post trust busting era), but now they obviously do not dseserve that previous status.
    It is a contract. Nobody forced her to sign it.

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    It is a contract. Nobody forced her to sign it
    ... which coincidentally brings us full circle on the subject of 'consumer loan protections'. If the lenders are forced to assume loss risk, and if the lenders are prevented by (new) regulation from recovering their losses from the statistical group of borrowers who creates the majority of losses, then a whole bunch of logical outgrowths are likely to happen ...

    - subprime borrowers are NOT going to be approved for new loans
    - prime borrowers are going to be hit with higher interest rates to 'cost shift' subprime losses from existing loans
    - credit lines for both subprime and prime borrowers are going to be reduced, so the lender can reduce potential future loss risk
    - all taxpayers are going to be hit to bail out the lenders who are unable to recover their losses from their own customers, prime or subprime

    there is no free lunch !!!!!

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Quote Originally Posted by Melonie View Post
    ... which coincidentally brings us full circle on the subject of 'consumer loan protections'. If the lenders are forced to assume loss risk, and if the lenders are prevented by (new) regulation from recovering their losses from the statistical group of borrowers who creates the majority of losses, then a whole bunch of logical outgrowths are likely to happen ...

    - subprime borrowers are NOT going to be approved for new loans
    - prime borrowers are going to be hit with higher interest rates to 'cost shift' subprime losses from existing loans
    - credit lines for both subprime and prime borrowers are going to be reduced, so the lender can reduce potential future loss risk
    - all taxpayers are going to be hit to bail out the lenders who are unable to recover their losses from their own customers, prime or subprime

    there is no free lunch !!!!!
    Free lunch = marrying a surgeon or something. That doesn't appear to be a popular option around here, and I'm not sure why. I am sure I don't really understand the zeitgeist of strippers.

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    I am sure I don't really understand the zeitgeist of strippers
    A lot of 'strippers' don't have an iota of 'negative' zeitgeist. However, a lot of 'strippers' also don't declare all of their incomes, nor do they pay the associated taxes, thus they have little personal reason to develop a case of 'negative' zeitgeist !

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    Default Re: Car Loan After Repo; do I have to wait till my next life?

    Quote Originally Posted by Melonie View Post
    A lot of 'strippers' don't have an iota of 'negative' zeitgeist. However, a lot of 'strippers' also don't declare all of their incomes, nor do they pay the associated taxes, thus they have little personal reason to develop a case of 'negative' zeitgeist !
    There may be some strippers out there that make way more than I do. When you add in the fact that I pay taxes, and they don't, it may be significant. (I get free health insurance and other perks which may offset some of the difference, but it's not really relevant.)

    The thing is - someday, in the distant future, I will be 40. And unless the world changes dramatically, I'll make more then than I do now. Someday, strippers will be 40, too. But for the most part, their income will be in a free-fall. I understand that many of you are business savvy, and take on second careers after the first one is over. But I don't get why marrying a rich dude is such a
    disfavored way to cash out.

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