Yes I can get a co signer but If purchasing a new car they said I don't need one. The balance on he car is 31,300.00. May 2012
Kathi,These are are some options for you to consider.1. From a purely legal perspective, returning the vehicle DOES NOT invalidate the loan. The lender, even if they accept the vehicle, can still hold you liable for the remaining debt. For example if they take this car back, put it on auction, and sell it for $25,000, you would be personally responsible for the difference between the value they sold it for, and your outstanding balance pus auction fees, fines, and penalties for defaulting on the vehicle. There is a myth that by returning the car, it absolves you from the agreement--that is not the case. You can still be held liable and pursued for the difference. This is only a viable option if the lender agrees in writing that before you return the vehicle, the lender will consider the debt paid in full and will not pursue you for any deficiency that may be owed to them for the vehicle.2. If the dealer is willing to 'buy back' your car and offer a different deal for a more affordable vehicle, that may be a viable option. Please also be aware of the issue above, that if they offer you less for the car than you owe, you remain responsible for the difference. Many dealers add this value to the backend of your purchase, so a car can then become far more expensive if you purchase it.3. You may also want to consider speaking to local credit unions in your area. They tend to be far more liberal with their lending, and they may be able to provide you with the means of refinancing your loan for a lower fee. Some credit unions offer very low interest rates on used car loans if the car is still relatively new (I have seen loans as low at 1.99% APR, and personally took advantage of such an option with one credit union), which can lower your payments if you transfer the loan elsewhere. Hope that helps.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).