A co-worker of mine recently went through a rough patch with his long term girlfriend. They purchased a car together awhile back and since he decided to move back in with his parents for awhile and already has another vehicle, he let her keep the car they bought together with the understanding that she would be making the car payments.
Fast forward 3 months-- guess who didn’t make the car payments?!
That’s right, the car has been repossessed and she’s got NO money as she’s apparently decided that working isn’t something she wants to do right now.
My co-worker is looking at approx $1500 in payments and fees in order to get this car back that he truly doesn’t need.
So my question is… once you have a car reposessed, is it worth the money to get it out if you don’t truly need the car? Should he cut his losses or get it back in hopes of mending his credit?
Will there be a negative mark of equal weight on his credit regardless?
Well, that would be the differenct in the payoff amount and the sell price, wouldn’t it? Assuming that they are upside-down, that could be more than just the $1500.
I meant if the OP decides to not get it back, and his payoff is 10k, if they sell it for 4K they can only sue him for 6K. (as I was told by someone who had this happen).
Yes, even if he gets it back, there will be a repo mark on his credit report. Your question is basically an “opinion based” question, I’m surprised it hasn’t been moved. But in my opinion, if he owes like 12 grand on the car, I wouldn’t get it back. If he only owes a tiny bit, get it back. I’ve had my car repo’d twice and each time the “fees” were about $1000.00 bucks. So, he’s looking at $2500 bucks PLUS a bad mark on his credit report.
And let me tell you, having a repossession on your credit report is like being convicted of being a pedophile in the credit world. You won’t be able to get shit any longer.