What to do with unwanted car

[swanson719]

A friend of mine bought a used car for her last boyfriend but kept it in her name. They broke up, and now she's stuck with the payments. She only owes $5,000 on the car, which is on an 18 month note, due to be paid off in August 2010, with monthly payments of $431. She has her own paid off vehicle as well that needs a little work under the hood. The car she has and doesn't want has $1k of equity in it according to the blue book for a trade in, and $3K for a private sale. My suggestion was to try to do a private sale on craigslist or the classifieds, and if that doesn't work then take it to a used car dealership and sell it to them. She should walk away with $1,000 for her car and be out of debt. This car represents almost 30% of her income, and is more than her rent, so it's killing her financially.

What would you do in this situation?

[maat55]

I would sell it craigslist as well, even if I had to loose another 1k, that still nets you 2k.

If she gets desparate, she can take it to Car-Mart for a quick sale. I would just list it 500 below private sale and lower it a couple hundred each week.

[b4freedom]

Here are the options:

1) Default. Call the bank and let them to come repo it. Pro's: You don't spend any more money on it. Con's: Bad credit.
2) Court. Sue him! Take him to small claims court and sue him for $5k. Pros: you get $5k and he has the car. Cons: court fees, court, and you may lose. I suspect it’ll be something in the middle.
3) Sell it at a loss. Pro’s: you’re done with it. Con’s: you have to come up with $2k to pay off the bank note. If you do this option, I’d sue him for your losses after the fact. But, if you don’t have $2k, you can’t do this option.

Personally, I’d just take this to small claims and let them figure it out and be prepared to own and pay for a car that you don’t want.



Next time, watch Judge Judy and learn not to cosign for anyone unless you’re married.

[maat55]

Here are the options:

1) Default. Call the bank and let them to come repo it. Pro's: You don't spend any more money on it. Con's: Bad credit.
2) Court. Sue him! Take him to small claims court and sue him for $5k. Pros: you get $5k and he has the car. Cons: court fees, court, and you may lose. I suspect it’ll be something in the middle.
3) Sell it at a loss. Pro’s: you’re done with it. Con’s: you have to come up with $2k to pay off the bank note. If you do this option, I’d sue him for your losses after the fact. But, if you don’t have $2k, you can’t do this option.

Personally, I’d just take this to small claims and let them figure it out and be prepared to own and pay for a car that you don’t want.



Next time, watch Judge Judy and learn not to cosign for anyone unless you’re married.

I believe she has the car in posession. She just needs advice as to what to do with it.

[wnlbutterfly]

Could also list it in her local classified ads. We did that with one and sold it pretty quick.

I would certainly sell it as quick as possible. It is a constant reminder of the relationship (and the fact she signed a loan for someone else...don't do that).

[tzsgti]

Like everyone said. Craigslist, ebay, autotrader, local newspaper classifieds. to Name a few.

[cschin4]

She should sell one of her cars. She could put both cars up for sale. Or, if she wants to keep her paid off car, then just put BF's car up for sale. And, selling things isn't easy. Just because you have something to sell doesn't mean there are any buyers. She may need to sell it to a used car dealer.
I think that she should sell the car for whatever she can get for it. If she sells and still owes a bit of money, then that is life and she should chalk it up to a learning experience. Better to owe $1000 and be done with it, then owe $5000 on a car you don't need.

[b4freedom]

I believe she has the car in posession. She just needs advice as to what to do with it.

My understanding is that she has it in her posession. But, just like a bank would sue you for the difference in a house loan and what they could sell the house for, she should do the same thing.