Sell the car. If you repo it, your credit will be badly dinged, you will still owe the balance of what the bank doesn’t get when they sell it. Sell it and you are ok. This is a very hard predicament, and one I can relate to. We were $4,000+ upside down on the loan vs. value; bank took the car; our credit got dinged; we had to pay the bank for the difference; and it took two years to get any type of credit again. In hindsight, if I was more proactive, I could have done the following…
- Sell the car at a loss and come up with $4,000 (somehow…)
- After the repossession, I should have been more proactive in returning my credit to a better state sooner.
Now… I learned my lesson — we don’t ever buy a car new off the lot;
even though we have a nice car with leather interior, it is a 2008 model with 165,000 miles on it (we have had it since 135,000 miles) and it still works GREAT. I take it to the shop for oil changes and brake pads, and the transmission needed replacement over a year ago.
BUT the price I have paid for all of that is a FRACTION (1/3rd) of what a new car would have been. We have smaller monthly payments and hope to get it paid off in 2017! It’s a hard pill to swallow, but it was a lesson we needed to learn only once.