DO CAR PAYMENTS SURVIVE DAD

Everybody's Uncle,
My father purchased a vehicle October 2004 with his name only on the contract. He passed away in March 2005; he and my mother live in Arizona a community property state. My mom can't afford the vehicle payment, she has a vehicle payment of her own, is she liable if my dad's vehicle is voluntarily returned to the dealership.

Thank you,
Robert
 

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Robert,

Sorry about your father's passing. Let's do the best we can to avoid any unnecessary complications related to this vehicle.

Voluntary repossession does not dismiss payment obligation. If the vehicle was purchased (not leased) find the present retail value of the vehicle and the amount due. The payoff amount is not the total of the "coupon" payments remaining. That amount includes interest. The bank will provide a payoff amount upon request. If someone in the family is willing to take over the payments and possession - problem solved. If not, try to sell the vehicle to a neighbor or someone who knows the vehicle's history. They might be willing to pay a fair price for a known vehicle. In the worst case, get the best price the market will bear. To sell the vehicle, it must first be paid off, owned and then sold, or a mechanism found to enable the transfer. If the sale brings an amount less than what is owed, perhaps mom can find a way to extend small payments over a long period of time. An equity line, if she owns a home, would do it. Perhaps her children could contribute to such payment to make her burden a little lighter in these difficult times.

If possible, find the solution, put a plan in action and tell mom it has been taken care of. The last thing she needs is financial stress attending dad's demise.

Time to take the reins,
Everybody's Uncle