I used to work in collections. Here is what likely will happen...
1. Once the bank repos the car they will take it to auction. They will deduct what it sells for(plus towing, storage, repo fees, auciton fees, ect) from your payoff and you will be left responsible for the remaining balance. If you don't pay, they can take you to court and get a judgment/sheriff sale/garnishment against you(try getting a loan for anything again while there is a judgment, it won't happen FYI judgements don't vanish either). Even as an employer I wouldn’t hire someone with an outstanding judgment. I would bet you will probally get more money in the long run if you just trade it in.
2. Your credit will get messed up. You will likely have to be months behind before they will repo it. This will show for 7 years from the date the account went past due.
Here are the options you have...
a. Sell it and pay whatever is left on the spot(bank won't release the title without it being paid in full). Credit card/personal loan/401k/borrow from family, whatever you have to do.
b. Ask the bank if you can do a short sale(they likely won't agree)... chances are they won't agree to it because the simple fact you are just being a bum and trying to get out of paying what you owe because you don’t want the car anymore.
c. trade it in towards something that you want and eat the negative equity(wouldn't do this because it will just put you in the same position you are in with just a different car)
d. Keep the car, fix it, and keep driving it(the only option that probably won't screw you royally)
e. Default on the loan
Quote:
Originally Posted by CleanNeon98
It won't totally bomb your credit but it will absolutely hurt it. I deal with people who have "voluntary reposessions" all the time, its not easy getting them approved for new loans.
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You call not totally bombing your credit having to cross your fingers to even get approved for a 15+% interst loan with a crap load of money down for a car you don't want because your interest is so high you can only afford a turd?