Letting a car go...

i would sell the tacoma( since it is paid off) and get a lower payment on the runner

you live you learn
best of luck OP

 

Short financing period, expensive vehicle, high interest rate...there's a lot of ways to elevate a payment amount.

My payment for the Taco is over $600 per month. My car payment is higher than my rent. I like to be done with debts quickly.

 

$600 for a take over-payments sale might be too high for most potential buyers. You could try refinancing it for a longer period. It will reduce the payment and might make it more appealing to a take-over payments buyer. If you owe less than the vehicle is worth, it shouldn't be a problem.

Best bet is, as you said, is either to sell the 4-Runner privately if you can or sell the Tacoma and use the money to pay down the debt on the 4Runner. Then refinance it to get the payment lower on the 4Runner for anything left over.

Surrendering it should be a last option. You'll still be down to one vehicle, and you'll owe on the balance anyway. Plus you'll have a ding on your credit report. I think as long as a balance is owed and you haven't declared bankruptcy, the debt won't go away. If they can't collect on it, they'll sell the debt to a collection agency and you'll be hassled with that crap.

 

my initial payments were $425 per month but i would pay between $500 and $1000 depending on how much money i happened to have available that month. i'm buying a house so i refinanced and my payments are down to $260 per month, but i still pay between $500 and 1k (that may change for the first few months after we move into the house). my point is, i hate debt with a passion so i pay off as much as i can every month, but either way i want the payments as low as possible just in case i lose my job, or have an off month or an unexpected expense. im all for paying more than i owe each month but i want to owe as little as possible.

 

Scenario A: You sell the 4Runner for as much as possible (say $20K), and get a signature loan from the bank it's financed with to cover the shortage. You will have to do this immediately (best to have it arranged beforehand), as this is a titled asset. Whoever you sell it to will want the title, and your bank won't release it without payment in full. THIS IS THE HARD WAY, but also the best.



Scenario B: You surrender the 4Runner to the bank (voluntarily or otherwise). The bank auctions off the 4Runner at a dealer auction, where it will bring MAYBE $14-15K. This will leave a shortage twice as large as scenario A. The bank will get a judgement against you for this larger amount, plus any legal, sale, and repo/storage fees (which can be ENORMOUS).


The bank can and likely will chase you for the shortage in scenario B, including garnishing wages, collection agents, etc.

If there is an unsatisfied judgement against you, FORGET trying to get a home loan, or most any other credit.



YOU OWE FOR THE 4RUNNER. No way around it, you asked someone to loan you money to buy it and they did. What it's worth in relation to what you owe now is NOT THEIR PROBLEM.

You will end up paying for it one way or another. How much you end up paying will depend mostly on you. I'm not trying to be harsh, just trying to relate the facts as I see them. Good luck.

 

Well stated. Good to see someone else knows how to bust out some Straight Talkin™.

 

I'll just say this once....

Gas can, remote location, matches...


































jk... sell the taco to pay down the 4runner...refinance