AARONHL

iTrader: (1)

Am I missing something??, how could you payoff over 6k and owe more than the original amount borrowed?

SilverStone2003

iTrader: (3)

Because he refinanced it. Basically it makes the note cheaper but tacks on more money owed.

By now if your payments have always been made on time, why not just try to trade it in for something cheaper. I mean your note would be cheaper Im sure but you would be over and under majorly. Which does suck. But it sounds to me like your just stuck. I would do my VERY best to not default on the car and have the bank take it. Bc your still going to be stuck paying it off and then just be without a vehicle.

You must have had a ridiculous intrest rate to owe that much more than what you paid.

karossii

Yeah, it blows my mind too. Basically, I found out the hard way that when I tried to pay it off faster, by making my payments higher (they were $480ish, I tried paying an even $500 every month), Santander charged me fees to accept the extra money. And those fees got added onto the principle, while the extra payment was applied only to interest. Which made my debt increase... because I paid more than the base payment. So after a year of doing that, they sent me a revised payment schedule, telling me my payments had now increased because of the higher principal balance.

At that point I asked to refinance, because I couldn't afford the newer higher payments. They allowed me to, but it took about 6 months to get the refinance done. Then, I found out only after the fact, that when I refinanced, they took ALL of the interest I owed, and figured it into the new amount as principal. Which meant that I owed several thousand dollars more than I should have.

Of course they gave me over 3 years more to keep paying on it, keeping my payments under $500 still.

As to trading it in, my credit won't cover that much negative equity (the best trade in deal I have gotten would leave me $6,200 upside down). The best loan I have qualified for is $24,000 total, with a maximum of 18% LTV (Loan to Value) ratio. That means of the 24k, the car itself has to be valued at a minimum of $19,700. That leaves only $4,300 for taxes, warranties, the trade in, etc.

So in short, it is currently impossible for me to trade it in. And I really doubt anyone would buy it for the full amount I owe, and I have no option to sell it for less.

Which leaves me voluntarily surrendering it, or struggling to make payments I can't afford to make and waiting for them to repo it as I get further and further behind. Either way, they auction it off for pennies on the dollar and I still owe them the remainder...

This is why I figured parting it out may be a good option. It won't change what they get for it drastically - I have seen similar auctions in the past and they really do get pennies on the dollar for the cars. And it would give me some cash right now to put towards the difference.

I just don't know what parts are readily removable, or worth the time and effort of selling. If any of them are...

dkmura

iTrader: (64)

Unless you are highly skilled mechanically and have a place to store the Z as you part it out, it's NOT a good idea. Unless you have any expensive mods (forged wheels, specialized powertrain parts, etc), the car will always be worth more fully assembled and functional. A Z is a complex machine and isn't easy to take apart and sell. I discourage you from taking any action that will only make things worse (if that's possible).

As others have said, you're stuck in a difficult financial position. By not fully reading and understanding the terms of each of the financial documents you've signed , you've lost control of this loan situarion. But don't let desperation drive you any further down- the solution isn't a mechanical one.