You started off sounding honest, and then said you'd rather set the car on fire than give it back to repay your debt to the bank....that makes no sense....
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How much do repo cars go for?
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You started off sounding honest, and then said you'd rather set the car on fire than give it back to repay your debt to the bank....that makes no sense....
I don't like authority in general. But then I usually tend to avoid most situations where I get stuck with something I can't afford. So I'm just curious what gives?
I don't even know what you're getting at with "what gives", but when you take money and agree to pay it back or to return collateral in usable condition (the car), one would think that a decent human being would live up to their end of the contract.
But, it should be no surprise that scum is out there.
Generally I purchase my vehicles for cash. That way the bank has nothing on me. And imho, that's what people should be doing. Save money then buy car. If you didn't and then got stuck with a car that you're not able to afford - you brought this upon yourself.
Yeah, well, in an ideal and perfect universe, yes, indeed, this does sound like an approach that may be worth considering and emulating.
However, life may turn out a little differently than planned. Thus, a great many people enter into commitments with every intention of fulfilling them, and then something changes.
For example: The company you work for goes bankrupt, and you lose your job.
Or, the company you work for is bought out, moves to the Far East, or is taken over, and 'downsizes', or, worse, (remember the 80s term for 'downsizes', which was 'rationalisation' - what is rational about unemployment?), 'rationalises' - which means shedding many, many employees, and you lose your job.
Or, you fall ill, lose your health, and you lose your job.
Or, your spouse falls ill, and you have to care for him/her once the healthcare insurance runs out, and you lose your job.
The truth of the matter is, in quite a number of modern societies, not least that of the USA, a great many people are around two to three pay checks away from financial difficulty. And that is when it becomes difficult to meet prior commitments, made when it seemed more than possible to meet them.
Scamming companies is one thing, but in recessionary times, many people find that their employment circumstances change, and with it their financial means and their capacity to meet their prior contractual commitments.
It's hard to accurately say how much your car will sell for at auction, but I would guess 50-70% of NADA retail value. I've worked in the banking/credit union industry for several years and I have a bit of experience working with these types of things.
I beg to differ. I don't live in the ideal world but the real one, just like you. I'm not a millionaire and I don't have a trust fund to siphon from. What I did have is a regular job. Only instead of wasting my money on useless crap and living in the land of instant gratification I saved my money up and paid for cars in cash. That way financial institutions cannot do a damn thing but bite themselves and they just can't take my car away because it belongs to me.
Now, there are certain times where this approach doesn't work such as buying a house. Saving up several hundreds of thousands of dollars would take a very long time. But when it comes to buying something a lot cheaper like a car cash is still king. Basically when it comes to that if you can't pay cash for it - you can't afford it and you shouldn't be buying.
I plan on continuing paying only cash and spitting on banks and car payments. Why? Because it feels good.
Recessionary times? Where? That was back in 2008-2009. Pretty sure we recovered by now.
I believe that is really high. These repossession auctions which are sold dealer only really go for a very low price.
Right. 70% is a bit generous. Realistically it is closer to 50%. Maybe even less. It also depends on the condition of the vehicle, mileage, options, etc.
I get all my vehicles from a dealer only auction. The prices are ridiculously low. I used to also pick them up from Insurance Auto Auctions but more vehicles are being salvaged titled for stupid things. At a Dealer Only auction, I'm only using KBB Trade In value when I price. That is the lowest value that they show.
My Lincoln Navigator, I bought it for about 40% of the KBB Trade In value at the time. It was a repossession and it was raining on the sale day.
My Ford Thunderbird, I picked up for about 55% of the KBB Trade In value. I paid more because it was low milage and limited edition. It was also a repossession.
I stole this 1st Generation Honda Insight because everyone was afraid of a hybrid. Picked it up for about 20% of KBB Trade In value. It was a trade in.
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Nice! Pretty sweet deals if you're ok taking on the risk of a repo vehicle. I'm doubting they go through any sort of inspection before going to auction (maybe they do?). There is a bit of risk in that you never know how the previous owner treated the vehicle before it was repo'd. Often times when borrowers figure out their car is being repo'd they don't exactly treat it very nicely.
The dealer auctions open early. At most auctions if you bring your red plate (GA Dealer Plate) you can test drive a vehicle. I run them through Pep Boys if I'm really interested.
Why would I pay cash for a car when the bank is giving me the loan at 0% or slightly more? Over the course of the 3,4,5,6 years of the loan, investing the money that would have went to the car will make you even more money.
By the way do you have to be a car dealer to go to the dealer auctions?
Because people who aren't very intelligent think that banks are out to get them.
You, however, are exactly right.
Not much you can do, for now... see what happens.
Might start looking at cheap cars, that embarrass you and scare your passengers away.
The bank will either be really active in collecting or give you some time to regroup if they move slow and give you time to build up enough to offer them a settlement.
Since it sounds like you will be settling $6-8 thousand for the cost of a possible lawyer assisted bankruptcy filing anyhow ($1-1.5 thousand).
Might start looking at cheap cars, that embarrass you and scare your passengers away.
The bank will either be really active in collecting or give you some time to regroup if they move slow and give you time to build up enough to offer them a settlement.
Since it sounds like you will be settling $6-8 thousand for the cost of a possible lawyer assisted bankruptcy filing anyhow ($1-1.5 thousand).
Important statistic... People who pay cash for they vehicles don't get the repossessed
You either have to be a licensed dealer or have a friend that is a licensed dealer. I am in the second category.
People who take out auto loans and pay it on time every month also don't get their vehicles repossessed.
Just because you got repo'd doesn't mean you lose your ride. Back in 98, I got repo'd & dumped some stocks to pay the past due balance. There are ways of coming up with the loot if you're creative enough. My credit took a hit but I paid the loan off over time like a good boy & saved my credit.
I didn't realize I was going to get repo'd. It was during the tech bubble. Those were wild times. Had to sell stocks because I was pumping most my money into the market and partying it up with the rest. Very fun, and very irresponsible times. I wouldn't change a second of it.
Keep in mind there are also fees for the repossession. Nothing like paying to have your car stolen. I rode with a repo guy one night. We picked up six cars in eight hours. Not one of the owners woke up. Using the VIN or a key code, he had already made a key fob for every vehicle so he could deactivate the alarm. His truck was a well oiled machine. It looked like any other pickup truck until he was backing up to your ride.
It's a job that pays well but does have risks.
It's a job that pays well but does have risks.