I don't know if this is the right place to ask - but I gotta try - long story short , I got laid off , and it's been some time , all the savings are almost dried up , havnt found another job even though I been applying like crazy , so I might not be able to pay for my car anymore , have to pay like 600 a month for it , I tried selling it off and paying off the remainder of the loan , but I would only get like 20k for the car and the loan is like 28k , so I would have to pay 8k more from my own pocket to pay it off completely which I don't have , so in this scenario , what would happen ?
What will happen if I one stops paying the student loan back, do they come and take the kid away?
I might have solved a huge problem. Thank me later.
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19d
They have all your information. They know where you live. They have your banking info. They know your employment. They will find it and you. There are people whose job is exactly this.
If you abandon it at the airport you will incur massive fines that will go to a collection agency and follow you across the country. And they’ll still get the car.
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19d
You know what? You will be fine. They don’t usually worry about car payments anyways. Don’t worry about it.
💀
lololololol your a gummba man, they will come and get it and your credit score will take a big hit, call whoever you have the loan with and if they are not assholes they will work with you to try and find a solution, my mortgage company helped me out when i hit hard times and could not cover my payment, good luck!
You aren’t funny. This is incorrect information.
The guy was arguing with every suggestion I made telling me it wasn’t right. I offered him advice and he chose to ignore it. so I said fine, do whatever you want. Then he deleted all his comments.
There's people out there who get paid to find those that don't want to be found.
I would like to know about this too !
That is a response?
They will send someone to come get it, after 90 days of not making a payment. Make sure all your personal belongings are out of it just in case. Then (here in NB anyway) they will auction it off and if there is more owing on it than they got from the auction, you will be sent a bill for the remainder. This happened to me back in 2013, things MAY have changed. I ended up getting a quick loan from Fairstone to pay off the remainder, along with some other things.
Thank you for the reply
No problem! And I hope things work out for you! ☺️
Pretty standard protocol
I had the same thing in 2014, I'm in BC, though, which is a Sue or seize province, so if they seize it, they can't sue you for the remainder.
Exactly that same as in Manitoba. They won't get fair dollar for it and you'll be on the hook for the rest of it. Your best bet is to privately sell and negotiate with the lender to refinance the difference unsecured.
If they won't do that, you have less ethical options.
What are the less ethical options? you can also dm!
Call the lender and tell them exactly what is happening. If you’re up front they might let you skip a payment, they might let you temporarily pay a reduced amount, they might renegotiate terms. They often have leeway. They 100% want to keep you in the loan and paying it off eventually. They 100% don’t want to have to send it to collections where they essentially just sell your loan for pennies on the dollar.
Talk to the lender, and as soon as possible
OP listen to this guy. It's not worth it.
Such a logical answer. Thank you for it. I can’t believe the other ridiculous responses here but I keep coming back to see them.
Absolutely this. You can do this with more recurring bills you have, including telecom, electricity, etc! It’s in the lender / provider’s best interest to help you with some temporary relief where they can hope to recoup that money later rather than to just write you off.
This is the best answer. Side question out of curiosity, What happens if he sells the car and is underwater on the loan? What can they go after him on?
Dog the bounty hunter will track you down
Luca Brasi !!!
BoC will be happy to know we're reaching max pain. Give dirt cheap money to people like OP and hike the rates to make him lose his job and all of his money.
Sorry I can't follow what you just said
It’s been planned for the past 3 and a half years.
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19d
How would I have to pay a difference ?
How would they find me ?
They can file for wage garnishment through the courts
What if I am not even in the country ?
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19d
I was just being curious
Lol
Well, just be aware that something like an auto loan does not have the 2-year statute of limitations that other debts have. So if you did leave the country then came back after 10 or 20 years you would still owe that debt and they can still sue you for it, but they would more than likely have just sued you in absence and have that wage garnishment on file. So if ever you come back they can just let your employer know and still get their money
Then you have fled the country and will be arrested upon entry.
What if I don't come back ever ?
Realistically nothing will happen, that is why people without a PR or Citizenship can have a hard time getting a loan (they can just go back and never pay).
Depending on the size of the debt and the country you go they may have some kind of arrangement to collect payments from you.
Regular debt may be harder to enforce. And probably not worth it to the lender.
However things like child support are often enforced. See all the countries that would enforce it
https://www.justice.gc.ca/eng/fl-df/enforce-execution/ov-ap.html
Thank you
That's a lot of data and info
I really do appreciate it
What if you go to the moon??
How did you buy the car? You likely had to sign something to get it if it was legally sold to you.
Have you ever had insurance on the car? Plates? Stickers? All that stuff is registered to not only your license, but your SSN. They'll find you eventually unless you leave the country and change your name.
Ok
So if I go to another country , then they wouldn't be able to do anything ?
It's a bank, they will write it off via auction. Contact you for remainder and if you say you can't pay it goes to collections. If you leave the country then it's just bad debt written off. No one will look for you as No one cares. It's a bad loan in a pile of good ones.
However, if you come back you're credit will be terrible and they can re activate the collections and harass you to pay.
Knowledge: im a Finance Manager at a dealership.
Call to ask if you can skip some payments ornsome arrangement. If not let the loan go bad and do whatever you want. Stay = bad credit and collections. Leave and no one cares.
Good luck!
Thank you
I don't want to defraud anyone , it's just the current condition of mine is so bleak , that's why I am even considering all this
I actually love my car , I bought it wholeheartedly and would like to keep it forever , but everything happened so fast and the job market is so harsh , but I will try my best to set things right and will only consider it as a last resort
Possibly not, but don’t expect to ever be able to buy a car again.
Why do you say that ?
In another country , I might have a different credit rating structure which wouldn't be bothered by my credit rating in Canada , right ?
No, not right. Banks talk to each other
Ok
So what you are saying is banks in Canada talk to banks in New Zealand or Australia or some other ones in other parts of the world ?
Look man, many people in here have already given you the proper advice, but it sounds like you just don’t want to deal with this problem properly. Good luck.
Am just curious
And yes people have given me all the info I need
It’s 2024. If they need to find you, they will find you.
No one is gonna look for him over a car loan gone bad lol not a crime to not pay your debt
The dude is trying to sell a used sex doll in his bio. I get the feeling he’s not a genius.
They'll find you. They have snakes that can find water in the desert.
That depends on where he lives. In Alberta they can cease or sue, they cannot do both.
Depends which province. BC is sue or seize, can't do both.
Edit: I believe it's just in BC and Alberta that have seize or sue.
It gets repossessed
Had this happen to an ex. They showed up with no warning and gave him 10 minutes to get his belongings out. It will get auctioned off
It depends where you live . British Columbia has a seize or sue law so if they choose to seize the vehicle it’s sold off and that’s it it’s done and the hit goes to your credit score . If they choose to sue you instead of seizure , than this will change but its rare . But depending on the state of your vehicle , if they don’t think they will recoup funds from the sale then they will go with the sue option. I went through this about 4 years ago , and as posted above , don’t try to make back payments to help it out, if you know your losing it , stop paying and make sure it’s parked for them to easily access when the bondsmen comes to collect it and you don’t be hassled too much . Also make sure you leave it insured until it’s taken , if something happens during this process like theft or vandalism and it’s not ensured this may be make things more difficult
In the business, this is known as being “upside down” basically you have 90 days to sell it at retail before they come take it and give you wholesale minus repo fees, storage fees, reconditions fees etc etc. Detail it throughly, take lots of nice pics to post and get as much as you can, while you can. You’ll have to clear the lenders lien and arrange to pay back the balance.
What is a lenders lien ?
Lenders lien is the loan. Bank owns the car technically so before you sell it privately that debt must be cleared.
Most private buyers know this and will go to a bank with you to pay off the loan with their money IF what you're selling for is enough to cover loan entirely.
What if what I am selling for is not enough to cover the loan ?
Can I pay off whatever I get for the car and then keep the rest of the loan open for me to pay back
You can't sell a car that still have a debt on it IIRC .
Hi sorry for late reply. No you cannot do that. The lien/loan must be cleared before another person takes possession of the vehicle or they will also take possession of the loan.
You would need to either have the cash to settle the difference at time of sale or take a different loan out to pay that out and then make payments on your new, smaller loan that is not secured to the vehicle.
So like a lease transfer , can I transfer my loan to a potential buyer ?
As in he ll be paying the rest of the loan instead of me and having ownership of the car
I'm not sure where you live, and the laws that apply, but here in Canada (ontario anyway), you can try to see if someone will take over your lease. That way, you're off the hook completely, and someone else gets a car with some payments already made. Worth a try if you can!
That a brilliant idea
, will definitely try that out
Thank you so much
And yes I do live in ontario
Ok awesome! It's a little tougher finding someone to take over your lease as opposed to a buyer, so just a heads up that might take a bit longer to achieve. Maybe research some groups to see if there are any like that? (people looking to takeover/end a lease). The only other thing I can suggest is....if you have a really garbage credit score, or don't care too much about your credit at the moment, and if you have other debts, you can try to file for a consumer proposal (debt consolidation) When the pandemic hit, it turned my life upside down, and I was pretty well in your boat (still had a job, but was laid off), I lost my car during that time because I couldn't make the payments ($600 as well). The only way I could get rid of my car was to surrender it, and file it with my proposal. That way, my debt is "paid" to them, and I make a low monthly payment to my proposal trustee. My credit went to crap (like 300's), but all of my debts were paid, and honestly was the best decision of my life. It was like a rest button lol. 5 years later, I've got one score up to 566, and the other to 649. Literally just financed a new car on Friday because it gave me the opportunity to rebuild it properly. Anyway, it's up to you, just wanted to let you know that there ARE options besides ditching it 😉 Good luck in your search, and I hope things turn up for you!
Thank you so much
It's always nice to hear it first hand from someone who has gone through what I am going through , I will definitely consider and try everything you said
No problem, and happy to help! You're definitely not alone lol.
My suggestion to you is....take 2 or 3 weeks to try and find someone to take over your lease. Post a listing on Marketplace of your car with the details....ask friends and family if they're interested, and if not, ask them if THEY know anyone who would be. Search online, as I said, for other people who might be looking to take over someone's lease. If at the end of those weeks you haven't found anyone and are interested in the consumer proposal, contact a debt consolidation company. I'm with Hoyes, Michalos & Associates. If you have them in your area, they were great to work with! DO NOT SURRENDER YOUR CAR BEFORE GOING THERE! In the meantime, if you have a payment that's due to come out before all of this gets sorted, call your lender and tell them about your situation (you lost your job and can't make the next payment), and ask for a deferral (to skip a payment). They're usually pretty understanding the first time. Don't tell them about your real plans...Just tell them it will only be this payment. It will buy you more time to figure stuff out and looks better with the company instead of them trying to take payment, and it's not there in your account. If you have any questions, feel free to ask and I'll do my best to answer :)
Thank you so much
This helps a lot
What kind of car is it?
It's a premium one
Speaking from personal experience from when I was growing up, the repo guys show up at your house one day and literally just take the car LMAO. Nothing you can really do about it
Where have you looked to sell?
Clutch alone offered me 5k more than I paid for my 2022. Make sure you're checking all these different entities to see if you can get a decent return on selling.
Will definitely try them out , Canada drives gave me 20k which is why I was skeptical of other online platforms , I heard other platforms like clutch and Auto trader might provide better rates
Canada drives offered me 20k. Clutch offered me 29k.
Wow thats really reassuring
Thank you for that
My friend was struggling to make car payments. One day he came out of his home and his car was gone. This ruined his credit source. He couldn't get a credit card, loan, anything for years.
If you don't work with the loan company they will just take the car without telling you. Sometimes you can talk to the loan company, make some sort of payments and they will just extend the loan. Typically, if you can't sell it for the loan value, the loan company won't be able to either. If they think they'll get their money but it will just take a little longer, they might cut you a little slack. But really, they might just cut their losses, take the car back, sell it at a loss, write the loss off on the business to offset taxes and move on.
The worst thing you can do for your credit though is just ignore it and hope it goes away. If the loan gets sold to a collection agency, they are heartless and you are doomed. Deal with the loan company before it gets worse.
I will consider and try everything before I plan to abandon it
You don't abandon it.
It will kill you financially
If I was you go talk to a trustee..you can 2 things. Make a consumer proposal. Which will kinda save your credit rating abit. Or claim bankruptcy and start all over. Which you'll have no credit for 7 years. If you want them to hunt you down and wait to end till they get car. Your credit rating will be trashed also.
Try to call whoever you’re financing through and ask to null a payment. This way your credit doesn’t get impacted.
The limit for how many times you can do this depends on your lender.
Be honest with the bank…..they will work with you. The bank doesn’t want your car, nor do they want to deal with trying to sell it. This will give you time to find work.
Depends on how far into your loan.
In ontario:
If you have paid more than 67% of the loan TOTAL your car cannot be repossessed.
If less, and you stop pay, the bank will repo, sell, apply net proceeds to debt, then move to collect the balance owing.
If OP has paid more than 67%, then they only can sue for balance remaining of loan.
Best bet, try calling up the bank. But be prepared, they might want the car back. They might try and repo immediately.
Worth speaking to a trustee in bankruptcy for a proposal to creditors, before calling.
What is a trustee ?
Ever heard of Google?
Trustee in bankruptcy
OP try “bust my finance/lease”. Post the ad on Facebook market place/kijiji, someone might take it over from you, saves you a dent on your credit history.
Not only will they take the car back but they'll sell it at auction for half of what it's worth. Depending on the institution they could sue you for the remaining amount. But.... the absolute last thing they want is the car back. Call them and make arrangements. They're usually always willing to make some type of payment plan work. Especially if it means they make more money in the end.
Hello guys, I have one question. Please read the story. My friend financed the car in 2020 in Ontario, Canada and one of his friends co-signed the car but the dealer put his friend as the main buyer and my friend as co-signer in the loan to get approved but the ownership was under my friend name. The loan amount was $40k. After two years my friend met with an accident and his car was in total loss and he also didn't have any insurance. Also, he got criminal charges. So, he scrapped the car. He stopped paying the loan and this time the balance was $23k. Now in 2024, CBSA is deporting him. His friend who was co-signing the loan is asking to pay the loan or give the loan amount to him. On my friends credit report, it says that amount is paid in notes and in the description they wrote bad credit, can't locate the person. So, my friend doesn't want to pay his friend any money and on the top he is deported to his home country. My question is whether his friend can ask for money from him legally or not. His friend is still living in Canada
I’m in the US so I’m not sure how different things are there, but I lost my job last year and was unemployed for about 8 months. I contacted my car loan company a few times during that period and they deferred my payments for 6 months before they told me tough luck. This extended the life of the loan but was reported as being paid on time. It got me through the roughest parts of it. They want their money and they know that they most likely won’t get the full amount if it’s repoed.
They send big Paulie to rearrange your toes
Lol
Whoz Big Paulie ?
One of the many repo men contracted by the people who financed/leased the car to you. Better pay up
What happens if I leave the car somewhere like a parking lot and go to another province ?
They will eventually find the car and repossess it. Many cars have GPS or tracking methods. Some places can actually disable vehicles for non payment (usually high interest dealerships for ppl with awful credit) If you leave, you are still on the hook for the contract and your debt will go to collections which will ultimately impact your credit. Then you will be screwed for credit cards, loans, homes, potential jobs that check credit and of course getting another car. I suggest calling your car finance company and asking for an extension or payment break. More sensible then running away
I would gladly pay if I could find a job , but that seems more and more unlikely, so I don't have any money to pay , probably would be homeless in 2 months too , Life just took a wrong turn
Call them, they much rather work with you and get their money in a longer time than have to send a repo on you. Even if that is turning over the keys to pay it off. There is value in facing it and not running and just spiraling your situation.
Look at getting a job in Alberta or BC. There is lots of work out that way.
I am considering moving , however I don't think I can bring my car over , so probably would have to abandon the car , initially I was thinking of leaving it at a Walmart parking lot or at the airport , but don't know if that's what I should do
If you do walk away, call the loan holder and tell them where it is. They'll send a bailiff to get it.
It’s wild that you are considering this. Abandoning the car will not magically make your responsibility for it disappear. They will find it, and they will find you.
If you truly can’t pay for this car, you have to give it back to them.
Why can't you bring your car over? In most provinces you can bring your car, get a new job and get it a safety and insurance after you move.
If I had that kind of money , I would have stayed here itself and paid the car loan money
The best thing you can do is call the lender and talk to them - you may well have to sell it and you will still owe the balance, but most lenders are interested in getting paid or at least recovering as much as they can, so they actually probably will be willing to work with you. It's a lot more in their interest than paying for bailliffs and collectors. Seriously, don't be shy, call them.
This. Worst case sell it at a loss so that they don't take it and value it even lower then what you could get for it. Instead of just 8k you may be stuck owing even more.
But either way I don't have enough money to pay it off whether it be 8k or more
But would you rather owe 8k or owe more then 8k?
Would it matter if I can't pay it back anyways
When you do get another job you wouldn't be able to get another loan, they could come after any other assets you have and you could even end up having your future wages garnished.
Getting it repo'd is actually quite a bit worse because they will charge you for the "service", the distance it's towed (which could be hours away) and then the storage before they auction it. You'd be lucky to see 14k of the 20k you said it's worth.
Call the lender and see if you can set up lower payments or interest only payments for a time. Give them a chance to work with you.
Use it to do door dash and parcel delivery. You might have to switch up your insurance but that’s better than ruining your credit or committing a fraudulent action to avoid the responsibility.
Most ppl don’t know this, but the law is;
if you’ve paid 51% or more the bank can’t legally repo your vehicle.
It goes into collections.
Downvote all you want but that’s the law
Repo
$600/mth? Wtf kind of car do u have??
Kind of a premium one , I took it when I had a really good job
You can try changing/renegotiating your financing plan to a longer term. Ie. 7 years to lower your monthly payments but you'll pay more interest over time.
It's already on 7 years
💀 I got no other ideas
But it's better you sell it than wait for an auction. At least you can control the price. If they auction it you won't know whether they scammed you by selling it high and telling u they sold low OR someone actually buying it for a low price because noone else bid.
If your friend has a garage park it in there and take off plates.
Sounds good
A big man with hair on his chest will come and break your kneecaps with a baseball bat
Sounds exciting Lol
Haha I suppose that could be one interpretation
Sell it
They will come and take back their car.