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  #1  
Old 11-19-2011, 02:18 PM
FloridaGuy FloridaGuy is offline
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Join Date: Nov 2011
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Default Been out of work/disabled/get rid of my car?

Hi, I came across this site. I'm looking for some advice on how to handle my situation. In 2008, I bought a new car, a Chevy Cobalt. At the time, I was making enough money to pay the monthly payment. I lost my job in 2009 and I am on disability right now. My car payment is $340 a month for 31 more months. My insurance is about $250 a month because I need full coverage. I honestly don't want my car. It's been a financial drain on me and I just can't afford it anymore. Add in gas and tolls and it's almost $650-700 a month. Ideally, I'd like to save up money and buy a used car for about $2,000 so that I just have insurance payments to make.

How do I go about doing this? Do I call the finance company up and tell them the situation? If I sell the car, how do I give the person that bought the car the title of ownership? Or do I let the finance company sell the car? What about making up the difference in what the car is worth and the interest of the loan? I don't want to get sued by the finance company either but if I still owe them $3,000 or $4,000 I can't just cut a check out.

Any advice is appreciated. Thanks!
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  #2  
Old 11-21-2011, 09:47 AM
littleroc littleroc is offline
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Join Date: Mar 2011
Location: Minnesota
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Default Re: Been out of work/disabled/get rid of my car?

If you don't pay the bill they will repossess the vehicle and then sue you for the difference, it's pretty hard to avoid because they will garnish your wages. What I would do is go to KBB and find the private party value of the vehicle and compare that to what you owe. If you owe lets say 4k more then what it's worth you will need to get a loan to cover the difference and to pay off the note. They will then release the title and you will be rid of this headache. I do like your idea of buying a used 2k car until you find work.
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Old 11-21-2011, 10:48 AM
FloridaGuy FloridaGuy is offline
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Default Re: Been out of work/disabled/get rid of my car?

My credit is pretty bad. I doubt I can get a loan right now to pay the difference. I could probably get a loan for $500 but that's about it. That's why I'm not sure what to do. I'm also going to be on disability for probably 2 more years. Can they garnish SS benefits?
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Old 11-21-2011, 11:48 AM
littleroc littleroc is offline
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Default Re: Been out of work/disabled/get rid of my car?

Can you sell anything enough to bring what you would owe? I wouldn't let them repossess whatever you do, they will have total control then. I'm not sure about SS garnishment, call them and find out.
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