Discussions

I’ve just surrendered my new SUV voluntarily. Due to the Covid-19 and loss of both breadwinners in the family we didn’t really have a big choice as we could realistically could afford one vehicle and due to not knowing how long this will last it was a hard decision. Wondering if anyone else is in the same dilemma.

I’m currently still working but my husband is not, so I did call the bank my vehicle loan is with and “redo” it. We extended the term at a lower interest rate. So I had 4 years on my new vehicle loan (Last September I got it) and extended it to 6 years to make my payments much cheaper. We went with a shorter loan to pay it off quicker and be debt free sooner, but I guess just making the payments now is priority.

This thread should be named tough times ahead.. while in my family we dont have vehicle payments anymore.  
 
I have been laid off for 2 weeks now... my wife just lost her job permanently due to work shortage. Thankful I dont have car payments or else ill be with you giving up up vehicle as well.  
 
I did change my insurance from full to personal use. For 2 vehicles saving $625/yr.  
 
Edited by Iceman69, 2020-04-09 20:04:43

If you choose to surrender your vehicle back to the Creditor make sure that the "Quit Claim" document you sign contains a clause that the vehicle is accepted as total payment of the loan, or as an alternative get a letter from the creditor outlining same. If you do not have some type of documentation that the Creditor is accepting the vehicle as total settlement of the loan, they can sue you for any outstanding balance between what the vehicle sold for at auction and the amount of the loan. Bank Managers have a wide range of powers during a financial crisis, one thing they can do with a vehicle loan is re-write same a 0% interest over a longer period of time. No financial institution wants financed assets being returned - they'd rather work with the individual. If you are having financial trouble talk to you Bank/Credit Union and see what kind of a deal you can make. A word of advice - when going to see your banker do not have a pack of cigs in your shirt pocket because if you can pay $22.00 for a pack of smokes you can quit and make your payments.

We are only four weeks in. With so many programs and deferred payment options it’s too bad you had to come to such drastic terms. I’m sorry you’ve lost your vehicle and wish you all the best. We can and will get through this!