[smolik]

Hi All,

To make a long story short, i ended up in a bad position with my bmw (owing more than its worth, etc). I already picked up a new car, and plan on just defaulting on the BMW. Who has any experience with this? How did you resolve the issue? any tips on what to say?

[blackhawkk22]

Originally Posted by smolik

Hi All,

To make a long story short, i ended up in a bad position with my bmw (owing more than its worth, etc). I already picked up a new car, and plan on just defaulting on the BMW. Who has any experience with this? How did you resolve the issue? any tips on what to say?

Lol @ South Florida

[lichtgelb]

The lender will reposes the vehicle and sell it at auction. There's a 100% chance the auction sale will be for less than the amount owed and the lender will attempt to collect the difference from you. You will have a repossession on your credit report and a delinquent amount. Read your note and it will tell you exactly what the lender will do in the event of a default.

[Kolyan2k]

Repo on credit history, thats pretty much it. No more auto loans or home loans for a while

[9krpmrx8]

And you are better off turning the car in to avoid repo costs being tacked on. It's best if you try and work something out with the lender. Years ago I worked for a small credit union and we would work with people minimize the damage foe everyone. But it depends on the lender.

[Gohan335i7]

Don't f up your credit dude...

[335NJ]

It'll fuck your credit to no other. Maybe buy a cheaper car to avoid this situation down the road? Shit happens, but BMWs aren't exactly cheap to own.

[patents]

They will repo it and they can sue you for the remainder of the amount owed. It may not be worth their while to sue, but you never know.

What is your new car?

Your credit will be jacked for the next seven years. During those seven years just plan on no car loans, no house loans, no cell phone financing, insurance rates go up, did I mention no loans?

Eat rice and beans and make the payments. If you can't, then call then lender and work something out. Pay on the car until you can sell it and pay it off. Man up and pay your debts.

And next time, don't buy an expensive car.

[Welcome to NBA Jam]

You going into default is going to screw up your credit. You need to call the lending institution about it to figure out what can be done to prevent poor remarks on your credit, if anything at all.

The more concerning part is that you've already gotten another car with money that you seemingly don't have. You should have had ample time to know that it's time to get rid of your car. These things don't just happen overnight. At the first sign of problems, you should've started the process of selling it to someone and paying the loan off. "Planning to default" is a terrible decision.

[EZgo]

How much is your negative equity?

[NW 335i]

Originally Posted by EZgo

How much is your negative equity?

A real opportunist

[addict]

Should have asked these questions prior to jumping into a new car. You are now at the point of no return.....

[techwhiz]

Originally Posted by smolik

Hi All,

To make a long story short, i ended up in a bad position with my bmw (owing more than its worth, etc). I already picked up a new car, and plan on just defaulting on the BMW. Who has any experience with this? How did you resolve the issue? any tips on what to say?

I don't understand the "bad situation".
Just because you owe more than it's worth did not make the situation bad.
Deciding that you no longer want the car did.
This often happens on new cars with very little or no money down. Your situation is not special or unique.

Defaulting on a car messes up your credit for years to come.
You will have a difficult time with anything that requires a credit report.
It may affect you if you want to rent a new place.
It will affect you in other large purchases that require credit.

Deciding to default is not a good decision.

[spiderspider]

I highly recommend the movie Repo Man. Classic

[floydarogers]

If possible, turn your NEW car back in (especially if there is a no-fault 48 hours or whatever), and negotiate a new lease/loan on the old car.

[barefootin]

Sorry, no sympathy. My kids know better... First step should have been to contact the lending institution when "trouble" started to see if they were willing to help via refinancing, lowering the interest rate (thus the payment), etc. Second, trade in on cheaper car financing the "loss" in and work your way out by paying extra as things improve. There are always options as institutions do not want stuck with the car either. Every individual out there buying vehicles at these new longer terms (72 and 84 mos) are UPSIDE DOWN in their loans for some period of time which is why "gap" insurance is becoming so popular... If you get repo'd on, good luck even getting a student loan... When I check credit, missed payments, a default or repo is a keep on looking bubby. I wouldn't even rent you a $45 a month parking space...

I know I sound like an A$$, but many years ago... Married only 2 years, new house, and baby on the way I was given notice that in 3 months I would be unemployed due to downsizing. I made the hard decision to get rid of my wife's brand new 6 month old car, my newer car, took out a high interest personal loan to cover the loss on hers and sold it private, bought (2) beaters, stopped all luxuries like going out to eat and getting coffee at the local convenience store, and picked up a part time job to bank some cash. By the time I lost my job we were prepared for the rough road ahead. I worked a full time job and two part time jobs until God saw fit to place me where I still am today. The thing is, I never was late on a single payment. Life comes down to choices....

[p30amg08]

Originally Posted by barefootin

Sorry, no sympathy. My kids know better... First step should have been to contact the lending institution when "trouble" started to see if they were willing to help via refinancing, lowering the interest rate (thus the payment), etc. Second, trade in on cheaper car financing the "loss" in and work your way out by paying extra as things improve. There are always options as institutions do not want stuck with the car either. Every individual out there buying vehicles at these new longer terms (72 and 84 mos) are UPSIDE DOWN in their loans for some period of time which is why "gap" insurance is becoming so popular... If you get repo'd on, good luck even getting a student loan... When I check credit, missed payments, a default or repo is a keep on looking bubby. I wouldn't even rent you a $45 a month parking space...

I know I sound like an A$$, but many years ago... Married only 2 years, new house, and baby on the way I was given notice that in 3 months I would be unemployed due to downsizing. I made the hard decision to get rid of my wife's brand new 6 month old car, my newer car, took out a high interest personal loan to cover the loss on hers and sold it private, bought (2) beaters, stopped all luxuries like going out to eat and getting coffee at the local convenience store, and picked up a part time job to bank some cash. By the time I lost my job we were prepared for the rough road ahead. I worked a full time job and two part time jobs until God saw fit to place me where I still am today. The thing is, I never was late on a single payment. Life comes down to choices....

well well done! awesome advice

[Larsim]

I would honestly suggest OP you go through the Financial Peace University - check out www.daveramsey.com. Be warned though that if you do the financial peace university you will be cutting up your credit cards, getting out of debt including your home (if you own one) and paying cash for everything going forward.

Good luck.

[Pixel8ed]

What ever you, keep in contact with the financial company. When you go silent they stop caring and just want their money. But if you can keep them up to date with what is going on, most will do what they can to work with you. Communication is huge! You can only dig your hole deeper by not talking to them. And it will only help if you do.

[Kevinl]

Originally Posted by Larsim

I would honestly suggest OP you go through the Financial Peace University - check out www.daveramsey.com. Be warned though that if you do the financial peace university you will be cutting up your credit cards, getting out of debt including your home (if you own one) and paying cash for everything going forward.

Good luck.

Please do op

And being upside down on a car or wanting a new one doesn't justify default

[Brettb1234]

You're going to need to elaborate a little more.

1. How underwater? What's the car worth and what do you still owe?
2. You don't have the money to close the negative equity gap but you have money to spend on a new car?
3. Said money in 2. makes it seem like being underwater isn't a huge deal anyways?
4. How is buying the new car fixing your problem? Does the car not run or something? i.e. motor blown

[xyaaeg234g234]

Originally Posted by lichtgelb

There's a 100% chance the auction sale will be for less than the amount owed and the lender will attempt to collect the difference from you.

Funny you say that. When I was in my early 20's I defaulted on my Civic that I only hand a handful of payments left on - when they sold the car it was far from upside down and I ended up getting a check for a few hundred dollars?

Yeah, screwed my credit big time - thankfully that has all fallen off and I'm on my way to 700's next month! A lot of drop offs, pay offs and some new credit lines have brought me out of the lower 500's hell into the mid-high 600's in about a year.

It only took a decade....