Should I get the New Sport Trac

[ImhotepMD]

I need help w/ a desicion. About 2 years I cosigned for my mother's '99 Contour, when she had to trade in her other car. She still owed money on the car and with Financing the payments were $425 a month(A lot I know) I helped her with half the payments earlier this year she got real sick and needed to go to the a nursing leaving me with the payment, along with my payments on my 94 Exp, totaling 575 a month. I went to the Ford dealership the other day and wanted to trade both cars. I'm about 8000 negative for my Mom's car and 1200 negative(from what they'll trade the car for and what I have left to pay). So they decided to let me trade just my 94 on a 03 Sport Trac XLT for 27000, payments 450 a month. This is where I need help. The manager and finance officer assured me that I could just let my mom's car get repossesed, and the bank would harrass me but couldn't collect and by continuing to make my mortgage and car payment on the Sport trac in 2-3 years my credit would be o.k. . I got cold feet at the last second and said no. However I 've beent hink about it and the deal is valid until Monday. Any advice from people w/ expriance w/ Credit. I love my Exp and don't won't to let it go but both cars are too much.

 

[section525]

Try to sell them privately. You'll have a way better chance at breaking even. Or even do a TOP (Take over payments).

 

[Stephen]

Welcome to the site!

That would be true if the car were in your mother's name only. Since you cosigned on it, its your responsibility to pay for it in the event that she cannot. Letting the car get reposessed will SERIOUSLY destroy your credit to the point that no one will extend credit to you for a period of 2-5 years. A car is considered the second biggest purchase a person can make, and defaulting on one looks seriously bad to creditors. Don't do it, trade the Contour and take the hit, let your payment go up.

You said you own a home, ever thought of a home equity loan? Take out the money to pay off the Contour...

Just a rule to the wise, never listen to the financial people at a car dealership, they don't care about you. Talk with a credit expert.

 

[ImhotepMD]

Trading my car or seeling it is no problem. I owe just about what it's worth. Or just letting someone TOP is possible. However I owe too much on my mom's car for that A difference of 8,000. I've even discussed w/ Ford Letting Someone buy it and have me pay the difference. They won't go for it. I just got my house about 6 month's ago and don't have enough equity built into it yet.

 

[Stephen]

Go here: www.myfico.com

This will tell you your current credit score, and it will explain what that means. Then it will tell you what exactly will happn to your credit score if you default on the car loan. Well worth the $13.00.

 

[MO_GUY]

i would let the bank repossess that car....that would put a dent in your credit dude, what if you dont want that sport trac a few years down the road? will you be able to get a loan for something new?

you could try and get that loan on the car refinanced but with only your moms name on the loan papers, then you can let it get repossessed and it wont do anything to your credit

 

[Stephen]

In all honesty, what I would do is trade the Explorer and drive the Contour for a while, thats my only sugestion.

Defaulting on the loan will seriously set you back creditwise.

 

[John_Rock]

Any dealer that tells you to let a car get repossessed should be shot!

I had one tell me that in Phoenix a few years back, and I just walked away.

 

[Stephen]

Good idea there on the refinance...thats worth a try.

 

[Stephen]

Go to www.peoplefirst.com they have good refinance programs. The question will be can you get that done, why did you have to cosign in the first place?

 

[ImhotepMD]

I'll make some calls tomorrow to check out refinancing. I've thought about just selling the Exp, and driving my mom's car but I love having an SUV, esp my Exp. Some cars just feel right.

 

[MO_GUY]

my guess is he had to cosign cause his mother didnt have sufficient credit or any credit, if the payments have been made on time and you've paid around 2000$ she would easily be able to get the loan put in her own name, trick is that you should try and do the refinance through the bank you have the loan, its more likely to happen that way.....cause they know you and know you do pay the payments so they will be more willing to help you out.

 

[MO_GUY]

Stephen, you have a PM from me

 

[ImhotepMD]

The reason I had to cosign is my mom had bad credit and not a high paying job. Currently she is in an assisted living center, so I don't think that anyone would refinance in her name. If only I could get it in her name I would be clear. I think I'll try to refinance. Thanks for everone's help.

Henry

 

[Stephen]

Mo, got it and replied.

Henry- the bank actually doesnt have to know that. Just be grey and take the papers to her and have them returned. Odds are they wont catch onto it.