Question
On my own policy, I can't afford insurance, but I have a lien...?
My mother is kicking me out. I have less than a week to get out. I have a financed vehicle which I still owe 8,000 dollars on. I'm upside down with 3,000 in negative equity from an accident earlier this year. On my own, I'm quoted at $306 a month for insurance on this vehicle. Because of my accident and the necessity of full coverage on a financed vehicle....I can't afford this. There's no such thing as voluntary repossession, right? And I can't transfer it with a lien, as in giving it to my fiance, and continuing to make payments through our joint bank account? That way, the insurance could be in his name...Is that possible? Would this change when we get married? Could I just add his name to the car and put the car on his policy? Thanks for any help. I'm not sure what my options are here. I'd rather not drive the car and let it sit in my yard and make payments than have to make that much of an insurance payment a month. Actually, its IMPOSSIBLE to make that payment, because I'm poor.
6 months ago - 2 answers
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Yes, there is such a thing as a voluntary repo, but it's a bad idea - you'll be upside down a LOT more than $3K after a voluntary repo. You still owe the money. You can't give or sell the car to anyone else, without the title, unless you can cough up the $3K difference somehow to pay off the loan. Insurance in his name isn't going to help, as it won't match the name on the titel or tags. You can't add anyones name to this car, without the lender's permission. If you can't make the payment, and you can't come up with $3K to get out from under it, might as well do that voluntary repo. You'll probably still owe, oh, maybe $6K to $7K after everything is said & done, but you can get two full time jobs flipping burgers or something, and pay it off in a couple years.
by mbrcatz
6 months ago
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Other Answers
ok you have 8k loan on a car that is worth 5k; if you let the car be repo, they take this to auction to be sold. if this car was not repaired due to the accident, they can only sell for scrap. so maybe sells for 500. now you will still owe the finance company 7,500. even if the car had been repaired, auctions are a buyers market. so the most it would most likely be sold would be 1/2 the value of the car or in this case 2,500, so again you would owe 5.500. you need this insurance or either just park it and never drive it again until paid off. ask your bf if he can help pay for the insurance. good luck
by lucy- 6 months ago