I bought my car from a used car lot. they got my fianced by a lending institution. well the vehicle is giving me nothing but problems and i really need to get rid of it. i have been shoppin for a new car but every where is telling me that the problem is my vechicle its upside down in payments and it would cost me about $4,000 to get a new car and get rid of my old one. Also most importantly 3 different places have told me that my car lender is not report my monthly payments to the credit bureau . if i let them repo this car will it hurt my credit? if yes, how can i get out of this old car and get a new one without have to put down a lot of money?
One error in one field of a computer program can cause the lender to not report to the credit reporting agency. If you have been making timely payments, this hurts because your good behaviour is not being showcased. Undoubtably, if they repo the car, they will have to go back into the lending program to update your status and the error will be corrected at the same time as your repo status is put in.
It is possible to ":pack": the old loan into the new one. This means you will be super duper upside down and paying more in monthly payments than if you didn’t have to. This is really only worth it if the old car is not meeting your needs anymore and the new car is going to be kept at least 5-6 years (to pay off the whole loan). You are at risk here too. If something happens to the car, your insurance will not pay out enough money to cover the whole loan. You definely need to look into buying GAP insurance, which can cover the difference so you aren’t making payments on a vehicle that pretty much doesn’t even exist anymore.
Shop around to find a lender who will take on the whole amount for a reasonable interest rate. Try the dealer, sometimes they do, but I highly recommend joining a Credit Union. The rates are the same for everyone at a credit union and usually a comittee will decide the loan and will take into account your personal needs.
Do your research and your legwork. This is a big money thing. A few days of running around could equal the same amount cash that most of us earn in a month or more. Find out the max amount you can get for your trade, see if you can sell it privately for more, find out how much the dealer paid for the car you want and visit multiple dealers and keep negotiating downward. This isn’t going to be a cake-walk, but it’s possible.
GET GAP INSURANCE!!!
Your loan company will most definitely report any delinquency to the credit bureaus. If they are not, they are violating the law….but the winner is you and if I were you I would be happy.
Being upside down in the what you owe compared to the value of the car…sucks. But, I would try selling the car privately for what you owe. Then, tell the loan people to report a payoff so you can get another car. Repo’s WILL hurt your credit for up to 7 yrs. Do not do this if you can help it.
You are in a catch twenty two Miss. You are going to louse no matter what road you take. Take the loss and upgrade with a dealership that is backed by the BBB and is trust worthy. A repo on your credit will kill any chances of ever upgrading into another vehicle. First off save thousands of dollars and use the Fleet department on the Internet. Apply for their special financing and own the new car that you have always wanted.
You could buy a new car before getting rid of the old one and let them repo it (the old one). However, the ethical thing to do is honor your debts. Your issue is not with the lender, it is with the car dealer. Not really fair to the lender to skip out on the loan. Was there any kind of warranty on the used car? If so, and the dealer isn’t honoring it, speak to an attorney.
If you let them repo it, they might start reporting then.
Look into the ":lemon law": for used cars in your state.
First of all, if they are not reporting your payments, perhaps your actually paying them and their independant financer. Best thing to do is check out your states Lemon Law and see if they can help you out.
Yes, it can…they can still report at a later time if you default or have it repoed…they can report anytime during the contract.
Yes it can mess up your credit! If you have proof that you are making the payments, then you can fight it, try contacting the Better Business Burrow.
If they dont report good info..they might report repos. be very careful.
if they are not reporting then it won’t hurt.