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Thread: how to get out from under your truck loan

  1. 01-31-2009 09:25 PM #1
    easeway
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    Default how to get out from under your truck loan

    One of my friends has come down extremely sick & needs to get out of his truck loan quickly. He is worried about selling it in the current economy. Can he call the loan company and turn it in without screwing up his credit rating? Not sure if he'll be able to return back to being an o/o after treatments in a year or not so he is very worried about the back lash of not finishing the loan. Any advice I can pass along to him?
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  2. 01-31-2009 09:39 PM #2
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    Rev.Vassago
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    There's no such thing as "getting out from under a loan" without screwing up your credit unless you sell the asset outright.

    What will happen if he relinquishes the truck is that the finance company will sell the asset at auction, likely for a fraction of its value. They will then demand payment in full for the balance of the loan. If and when he doesn't pay, they will sue him, and get a judgement against him. At that point, they have a legal right to garnish his wages.

    On top of that, he is going to have a loan default on his credit report for the next 7 years.

    Pretty neat, huh?

    If he doesn't think he can sell the truck in the current economy, why on earth would he think that the finance company would do a better job of it?
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  3. 01-31-2009 09:56 PM #3
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    Quote Originally Posted by Rev.Vassago View Post
    There's no such thing as "getting out from under a loan" without screwing up your credit unless you sell the asset outright.

    What will happen if he relinquishes the truck is that the finance company will sell the asset at auction, likely for a fraction of its value. They will then demand payment in full for the balance of the loan. If and when he doesn't pay, they will sue him, and get a judgement against him. At that point, they have a legal right to garnish his wages.

    On top of that, he is going to have a loan default on his credit report for the next 7 years.

    Pretty neat, huh?

    If he doesn't think he can sell the truck in the current economy, why on earth would he think that the finance company would do a better job of it?

    well before they demand full payment they will attempt to sell or auction the truck, THEN they will demand the balance left from what they sold/auctioned for vs. what was owed on truck.....there isnt a guarantee they will see and garnish wages(this does apply in certain states) alot of times companies wont come after you for balance due(not saying that wont happen)
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  4. 01-31-2009 10:20 PM #4
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    Quote Originally Posted by marcel27208 View Post
    well before they demand full payment they will attempt to sell or auction the truck, THEN they will demand the balance left from what they sold/auctioned for vs. what was owed on truck.....
    That's exactly what I said.

    there isnt a guarantee they will see and garnish wages(this does apply in certain states) alot of times companies wont come after you for balance due(not saying that wont happen)
    In any event, they are going to hit his credit, and it is going to hurt.
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  5. 02-01-2009 05:36 AM #5
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    Quote Originally Posted by Rev.Vassago View Post
    That's exactly what I said.



    In any event, they are going to hit his credit, and it is going to hurt.

    ur right i didnt read ur reply all the way...i was halfway sleep
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  6. 02-01-2009 05:56 AM #6
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    I have alot of experience in retail credit (autos) from my first career. Everything Rev says is true. The finance company loans money. They dont buy and sell vehicles and they dont want it, trust me. One other thing, when you are behind on a loan, dont believe a word the loan company says. All they want to do is resolve it in a way that costs them the least amount of money and they will tell you whatever you want to hear. They will tell you to voluntarily surrender the vehicle and it wont look as bad for you. Bull****. They are saving themselves repo money to come and get it. It's kinda like the cop shows on TV when they trick the suspect into a confession. Every payment you do not make is recorded as late and is killing your credit rating. And it will still show as a repo. THE ONLY THING that works is making every payment on time, like you agreed to do when you signed it, and paying them off in full. That means YOU have to find a buyer. They dont care about your personal hardship.
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  7. 02-01-2009 07:13 AM #7
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    Perhaps your friend could find someone who would take over his payments. He could set it up like a lease purchase where the buyer or lessee would pay him the payments and then he would turn around and pay the lender. There is some risk involved but it may be an answer with the current economy. He would need to make sure to check the guy out and make sure insurance is paid up to protect himself. Most lenders will not allow someone to simply take over payments. They want to make a new loan. That may be difficult with the current tight money market. If he cannot sell the truck out right it may be a way for him to salvage his credit. If he is currently leased to a carrier he could continue the lease where all money comes to him first. He takes the truck payment out of each settlement and any expenses and then gives the balance to the driver. That would take some of the risk out of the equation.
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  8. 02-01-2009 09:36 AM #8
    easeway
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    thanks for the info. He has to start his treatments in a month for several months. I'll pass this on.
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  9. 02-01-2009 10:17 AM #9
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    Well with alot of drivers looking for a job, why doesn't he just keep the truck leased to the company and hire a driver to drive the truck. Doesn't matter who drives the truck, as long as it's making money. He will save his credit, and make money until he finds a buyer.
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  10. 02-01-2009 05:26 PM #10
    easeway
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    I believe this is the route he will be taking. That is what I originally suggested to him the other day. He just wanted to check & make sure there were no other options to get around the predicament his health suddenly put him in. He knew there wasn't but never hurts to hope a solution is possible. Guess that should be a big eye opener for many of us, even if things are working out for you today as an o/o tomorrow you could be diagnosed with a possible career ending health problem. Be thankful for everyday you are given.
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  11. 02-01-2009 06:32 PM #11
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    Quote Originally Posted by boneebone View Post
    Well with alot of drivers looking for a job, why doesn't he just keep the truck leased to the company and hire a driver to drive the truck. Doesn't matter who drives the truck, as long as it's making money. He will save his credit, and make money until he finds a buyer.

    This was what I was wondering....If the economy finds a miracle, he could have an income while he is sick.
    Space...............Is disease and danger, wrapped in darkness and silence! Star Trek2009
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  12. 02-02-2009 10:40 PM #12
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    Quote Originally Posted by easeway View Post
    I believe this is the route he will be taking. That is what I originally suggested to him the other day. He just wanted to check & make sure there were no other options to get around the predicament his health suddenly put him in. He knew there wasn't but never hurts to hope a solution is possible. Guess that should be a big eye opener for many of us, even if things are working out for you today as an o/o tomorrow you could be diagnosed with a possible career ending health problem. Be thankful for everyday you are given.


    What was he diagnosed with?
    Faster than the speed of Peterbilt.
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  13. 02-04-2009 12:54 PM #13
    easeway
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    Cancer
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  14. 02-14-2009 02:01 PM #14
    arsjohn81
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    Easy,

    What type of equipment does this guy have. I'd be interested in doing a lease w/ him to help him out, along with myself.

    Drop me a private msg on here if you like and we can go from there.

    Chop
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  15. 02-15-2009 07:28 PM #15
    easeway
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    He worked it out with one of his brother-in-laws who sold his 12 year old truck, then took over his truck payments. Thanks for the possible help though. I know it is a relief for him now that it is all settled & he can now focus on his medical treatments without fear of ruining his credit. Hopefully he can win his fight & return to his business later down the road.
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  16. 02-15-2009 07:32 PM #16
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    I hope that your friend gets along well, easeway.
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