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Smart Shopper Owe more than it's worth... I'm upside down and I can't get up!
1160 messages, Last post on Oct 22, 2009 at 7:11 PM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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I would never, ever let the car be repossessd if there was the slightest way to avoid that. That is a major, major mark on your credit report. The missed payments that lead to the repossession are in addition to that, so you are taking a really bad situation and making it worse. If in this case the car is worth, say, $1K less than the loan balance I'd try to get the $1K together. A decent credit record is worth more than that and a bad mark on your credit stays there for at least three years. Obviously there are individual cases but as a rule you want to keep those things to a minimum. Plus there is the validity of a signed contract and a moral obligation to live up to it. |
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Replying to: joel0622 (Mar 10, 2007 12:12 pm) But you're not familiar with how BHPH works...it's in their business plan to repo as many cars as possible, but only after squeezing as much money as possible off the borrower. It's a viscous circle for most buyers.
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Replying to: bolivar (Mar 10, 2007 11:56 am) Do I have this straight? You lend me $1,000. I pay back $100 then skip town. I can have a clear conscience because you're holding gravy, right? tidester, host SUVs and Smart Shopper
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Replying to: sebring95 (Mar 10, 2007 1:13 pm) I am not familiar with them? Well thank you for pointing that out to me. I will make sure they know that when I am standing out front this evening before we close BS'ing with 3 or 4 of them that are here to buy are wholesale pieces from the weekend. Maybe one them can explain it to me. You saying they are in the business to repo cars is crazy. they in the business to have a very, very strong AP Account, a large group of people making there payments on time every week. When they open the door on Saturday morning the want a large pile of envelopes laying there that came through the slot from FP's (Friday pays) They do not want to chase paper They do not want to pay a repo man They do not want to hassle with a PO'ed customer What they want is you to pay your fricken car payment like you promissed you would when you signed the contract. I think it is funny how allot of you think you can just wipe your feet on these guys because they are a BHPH lot. That speaks volumes.
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Replying to: joel0622 (Mar 10, 2007 1:40 pm) How about the story about the Camero a few years old that had been sold 18 times by the same lot? |
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Replying to: tidester (Mar 10, 2007 1:22 pm) No, that's not quite straight. Now, I definitely don't agree with defaulting on an agreement. BUT, in your analogy, he only got back $100 out of $1000. In the car situation, he got $100 PLUS the $1000 car back ... at which point he'll sell it again for $1000. |
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Replying to: joel0622 (Mar 10, 2007 1:40 pm) I can wipe my feet on them because as a CPA, I've had close financial relationships with several of these BHPH shops. I've also terminated my services to all of them . I don't do business with folks when I'm not morally comfortable with their business plan. I've also cut clients involved with resort sales (selling "memberships" to people that can't afford it at 20% interest, repo'ing, then selling it again...), cash advance stores, and just plain folks I don't like. Not everyone can pick their clients, but I do and it's worked out well. I really doubt any are going to tell you "yeah, we love it when folks default" as these guys are trying to keep a low profile. Last thing they want are legislators breathing down their necks like some of these other questionable businesses. |
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...if a person owes money on a car and dies? Does the car get repo'd or is the loan written off? Say the person was single and had no family or life insurance.
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Replying to: lemko (Mar 12, 2007 5:40 am)  With or without a family or estate, I doubt that the dealer will leave the car sitting in the driveway for long. Alive or dead, no pay no car! |
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Replying to: lemko (Mar 12, 2007 5:40 am) |
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