Vehicle loan input

[Skoaltender]

Long story short I made a mistake a few years ago and signed my life away on a overpriced truck. I still owe $20,000 on a truck that has an estimated value of $18,000. My payments are $290 bi/weekly for another 2.5 years I believe. I no longer have use for my truck and realize I should probably get rid of it and this loan. If you were in my situation what would you be doing? How would you go about getting out of this loan. Keep in mind I don’t really have the cash available to just pay it out.

[Talking moose]

Sell it for 18,000 and eat the 2 grand.

[Trochu]

Sell the truck for $18k, pay down the load, pay $2k to pay off the loan.

[Skoaltender]

I understand eating the 2k part. What are the steps when going about privately selling a vehicle that still has a balance owing?

[Slicktricker]

I had a truck I didn't like found a guy who wanted it, went into the dealership and he took over the payments was easy

[Trochu]

Originally Posted by Skoaltender

I understand eating the 2k part. What are the steps when going about privately selling a vehicle that still has a balance owing?

If they're somewhat intelligent, they'll do a leins check and then the cheque is essentially made out to the bank and you'd have to pay the $2k off at the same time. If they aren't, they won't know it has money owed, and you can pay it off when convenient (I'd recommend as soon as possible though).

ps its been awhile since I've done this, the process may have changed. Or what Slick said....

[Skoaltender]

Originally Posted by Slicktricker

I had a truck I didn't like found a guy who wanted it, went into the dealership and he took over the payments was easy

I talked to a dealership about this and they wanted nearly $1,000 to process documentation...

[dale7637]

Shoot me some info. I deal with wholesalers everyday, may be able to get you out of it clean.

[EZM]

Originally Posted by Skoaltender

Long story short I made a mistake a few years ago and signed my life away on a overpriced truck. I still owe $20,000 on a truck that has an estimated value of $18,000. My payments are $290 bi/weekly for another 2.5 years I believe. I no longer have use for my truck and realize I should probably get rid of it and this loan. If you were in my situation what would you be doing? How would you go about getting out of this loan. Keep in mind I don’t really have the cash available to just pay it out.

If your payment is $290 bi weekly and you still owe $20,000 on it, which is the principal, it's going to be a lot longer to pay off that loan. In 2.5 years, even at zero % interest, you are still short of the $20,000.

You might be closer to 3 years or more, even at a reasonable interest rate.

Either way ....

Sell the truck, if you can get $18,000 for it and eat the $2000.

The problem is most trucks will not net you the money you think they are worth. That's been my experience anyways. What make/model/year? options? condition? mileage?

Nevertheless a private sale will always yield a better price. Wholesalers will hurt you (they need to carry the vehicle, take the risk and make money).

The same will be true of "trading it in" to a dealer where you buy another vehicle - they may show you the $20,000 on the buyout, but they will hold back your discount on the new one you are buying.

If you do decide to move on, keep in mind, for the same payment (assuming you still have to finance your next vehicle) you can get a pretty decent brand new vehicle for that (or slightly less) money.

Good luck ...

[Newview01]

There's a sucker born every minute. If the estimated value is $18k, I'll bet you can sell it for closer to $20k.

[Skoaltender]

Originally Posted by Newview01

There's a sucker born every minute. If the estimated value is $18k, I'll bet you can sell it for closer to $20k.

I’m just basing my price off of what others are asking on kijiji and various other sites.
It’s a 2011 Ford F-150 fx4 fully loaded with every single option available, locking heavy duty toneau cover, bed liner, tow package with fairly new duratracs. 180,000km and is in good condition. Some are asking over $21,000 for similar trucks on used sites so I figure a realistic price would be a few thousand cheaper as everyone’s asking price will be on the high side.

[Newview01]

Originally Posted by Skoaltender

I’m just basing my price off of what others are asking on kijiji and various other sites.
It’s a 2011 Ford F-150 fx4 fully loaded with every single option available, locking heavy duty toneau cover, bed liner, tow package with fairly new duratracs. 180,000km and is in good condition. Some are asking over $21,000 for similar trucks on used sites so I figure a realistic price would be a few thousand cheaper as everyone’s asking price will be on the high side.

Got it.

There is a purchaser in Lethbridge that ships vehicles south across the border. If your truck is in good shape it might be your best bet?

[Skoaltender]

Originally Posted by Newview01

Got it.

There is a purchaser in Lethbridge that ships vehicles south across the border. If your truck is in good shape it might be your best bet?

I messaged one member about this possibility. Thanks for the advice!

[Arty]

Originally Posted by Skoaltender

Long story short I made a mistake a few years ago and signed my life away on a overpriced truck. I still owe $20,000 on a truck that has an estimated value of $18,000. My payments are $290 bi/weekly for another 2.5 years I believe. I no longer have use for my truck and realize I should probably get rid of it and this loan. If you were in my situation what would you be doing? How would you go about getting out of this loan. [...]

I'm not sure I understand the part about 'no longer have use' for the truck. Don't want to pry too deep, but certainly there's cases around of sudden medical impairments such as bad eyesight or stoke, or of friends or relatives gifting an additional alternate vehicle for free which they no longer need, or of upsizing to a new diesel dually because you've bought a horse or a new welding generator, or of moving overseas, or of getting a new apartment in downtown of a big city where you can't even park a truck; all which I can understand.

But I've seen 10 times more cases of acquaintances or friends over the years who just get cold feet about staying with the same vehicle mostly because they just get tired of it and of doing any payments on anything. That what the auto industry counts on for a big chunk of its profits and repeat business.

Realize that any potential market price you might get now is not the real value of the vehicle to you. Probably the real value exceeds the price and financing charges you promised to pay on the day you bought it. So you've already paid forward a big part of the value you can get out of the truck for a very long time. That is yours now, but you will lose it if you cut and run. It's about a lot more than just 'remaining payments'.

If this is mostly a financial story like I suspect, best to keep the truck and pay it off. And then maintain it well and continue to use it essentially for free forever.

[CaberTosser]

18 years ago I sold a motorcycle for less than I owed on it. I was completely up front with the buyer about the matter and I did pay it off. When I called the finance company regarding how to paying them the entirety of the cheque I got for the bike and explain that aspect they came unglued. I had perhaps the equivalent of 4 monthly payments left and I made them all, I guess those outfits are more used to people that lie to them!

[fishtank]

Originally Posted by CaberTosser

18 years ago I sold a motorcycle for less than I owed on it. I was completely up front with the buyer about the matter and I did pay it off. When I called the finance company regarding how to paying them the entirety of the cheque I got for the bike and explain that aspect they came unglued. I had perhaps the equivalent of 4 monthly payments left and I made them all, I guess those outfits are more used to people that lie to them!

Default payment is a very very popular option... A friend that used to work for the finance department at ford, he shakes his head about how bad people are with their financial management, And wonder how some of the loans get approved .

[tool]

When their is a lien on a vehicle, generally the thing to do is to have the cheque made to yourself and the bank/institution holding the lien.
You take the cheque to that institution, sign it and give it to them and pay any remaining balance at the same time and you are done.

Did you buy this truck new?

If it's a 2011, at your payment rate it's going to take you atleast 3 years to pay off the note, I can't imagine anyone would finance a vehicle for 10 years?

[35 whelen]

If you've been making those payments since 2011 that's almost $70,000 you paid for that truck I would pay it off ASAP

Sent from my SM-G930W8 using Tapatalk

[jstubbs]

Originally Posted by fishtank

Default payment is a very very popular option... A friend that used to work for the finance department at ford, he shakes his head about how bad people are with their financial management, And wonder how some of the loans get approved .

Those people who do not understand it are why people in the auto finance industry are making well over six digits a year.

[TBark]

It’s the financing industry as a whole making big coin off people maxing their loans, mortgages, RV’s toys etc.
A lot of people are borrowed to the hilt, if they are told they qualify, they borrow it, pay it back later.
Not to the OP but people in general.

TBark

[10aciousB]

Originally Posted by Skoaltender

I understand eating the 2k part. What are the steps when going about privately selling a vehicle that still has a balance owing?

Sell the truck, continue making payments as per usual until the balance is paid, or pay the rest off with your personal line of credit.

[Skoaltender]

Originally Posted by 35 whelen

If you've been making those payments since 2011 that's almost $70,000 you paid for that truck I would pay it off ASAP

Sent from my SM-G930W8 using Tapatalk

Only had the truck since 2015.

[10aciousB]

Originally Posted by TBark

It’s the financing industry as a whole making big coin off people maxing their loans, mortgages, RV’s toys etc.
A lot of people are borrowed to the hilt, if they are told they qualify, they borrow it, pay it back later.
Not to the OP but people in general.

TBark

Yep. They are pros at selling you financing. I know of a few people who have flipped their trucks every year or two, rolling the negative equity into the new loan each time. Next thing you know, they're into a $70,000 loan for a $55,000 truck. It's easy to do if you're only thinking about it as a monthly payment.

[Skoaltender]

Originally Posted by 10aciousB

Yep. They are pros at selling you financing. I know of a few people who have flipped their trucks every year or two, rolling the negative equity into the new loan each time. Next thing you know, they're into a $70,000 loan for a $55,000 truck. It's easy to do if you're only thinking about it as a monthly payment.

That was my stupid mistake, they tossed so many numbers in my face that I screwed up and didn’t even realize until after how bad of a deal I got.

[B-radshaw]

These days they are only selling you a monthly payment. Iv been looking for another truck and every time I call a stealership on a potential truck the first thing they ask even before telling me the details of the truck is what is my monthly payment budget. Hell these days you could tell them $500 bucks a month and they would say perfect we can do that. Lets term it out over 10 years!

[Dean2]

You weren't paying attention and got screwed over Royally. If happens a lot, that is how Stealerships sell so many new cars. Now that you know, disclose to any buyer you have a lien so they don't find it on the vehicle search and think you are a scam artist.

If you can, pay down the loan with a 2,000 cash payment. When you close the deal, you and the buyer go down to your bank, hand over the certified cheque or draft that is made payable to you and them, get them to give you a clearance letter. If you sell it for more than is still owing the bank deposits the excess to your account or you get a cheque back from the finance company. Buyer is good to go and can register car in his name.

Now that you have learned, NEVER finance another vehicle. Buy what you can afford for cash and work up in age and bling as you can afford it.

[Skoaltender]

Originally Posted by Dean2

You weren't paying attention and got screwed over Royally. If happens a lot, that is how Stealerships sell so many new cars. Now that you know, disclose to any buyer you have a lien so they don't find it on the vehicle search and think you are a scam artist.

If you can, pay down the loan with a 2,000 cash payment. When you close the deal, you and the buyer go down to your bank, hand over the certified cheque or draft that is made payable to you and them, get them to give you a clearance letter. If you sell it for more than is still owing the bank deposits the excess to your account or you get a cheque back from the finance company. Buyer is good to go and can register car in his name.

Now that you have learned, NEVER finance another vehicle. Buy what you can afford for cash and work up in age and bling as you can afford it.

I’ll be the first one to admit my mistake because it’s my signature on the paperwork, but these guys are good at deceiving people. Hell I even payed for extended warranty that expired before the manufacturer warranty did... good old fashioned double warranty.

[pinelakeperch]

Originally Posted by Skoaltender

I’ll be the first one to admit my mistake because it’s my signature on the paperwork, but these guys are good at deceiving people. Hell I even payed for extended warranty that expired before the manufacturer warranty did... good old fashioned double warranty.

It happens. You learned your lesson. No need to beat yourself up over it!

[Dean2]

Originally Posted by Skoaltender

I’ll be the first one to admit my mistake because it’s my signature on the paperwork, but these guys are good at deceiving people. Hell I even payed for extended warranty that expired before the manufacturer warranty did... good old fashioned double warranty.

I was NOT criticising you for getting caught. If anything I think they should make a lot of these sale techniques illegal. These guys are WAY worse than payday lenders ever were because they trap millions of unsuspecting customers every year.

Car salesman and their mangers spend years honing what amounts to a scam, con game set of skills to take in the average customer. If you ever saw what went on in the back end of some dealerships you would think you were in league with the Mafia. The used car divisions are often way worse than their new cars because there are so many more ways to mess with used cars.

The only way to avoid most of their cons is to negotiate REALLY hard, know the prices other places, and buy with cash. If you are buying used make sure you have your own independent mechanic go over the car with a fine tooth comb.

[Sooner]

Originally Posted by pinelakeperch

It happens. You learned your lesson. No need to beat yourself up over it!

Agree.


If you can get out for only a 2G hit, count yourself lucky. Follow the Moose's advice, sell for as much as you can and take the lesson learned lumps. We all have a few. Good luck.