REPOSSESSION ALTERNATIVE


Hello, my name is Tabatha Parrick. In January we bought a 2002 Chevy ext. cab truck. Now we are not able to even get it put in our name due to the fact that our payment is so high. Well, I researched it. Our pay off is about $18,500 and the Kelley Blue Book value on it is $19,615. We have no other option but to voluntarily let it go back. We just can not make the payments. My question is how long does it stay on my credit report?

Thank you for your time.
Sincerely,
Tabatha Parrick

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Dear Tabatha,

Some things worthy of consideration:

To the best of my knowledge repossession stays on most credit reports for 7 years.
[Read other repossession columns.]
Allowing your vehicle to be repossessed should be avoided. There is no guarantee (although you could negotiate) that the book value will be the repossession value. That value is what the dealer recovers from the sale of the vehicle. Of course, there are repossession fees, fix up costs, and the potential of a very low "wholesale" sale. I have doubts about dealers making every effort to get the best price for a repossessed vehicle. Maybe THEIR mechanic found a defect that resulted in a low-ball sale to his brother-in-law.

If you are willing to return the vehicle for less than book value, clean it up and try to sell it privately. As long as you satisfy the lien, there should be no problem transferring title.

Ethically, lawyers and car dealers are in a dead heat. Don't get burned.
Everybody's Uncle