How to get out of a fresh car loan?

[cnugent]

Long story short:

My sister purchased a brand new minivan with her fiance, who promised to help her with half the payments. That was six weeks ago. He has since gone completely nuts and turned into super-stalker psycho dude, and now she's on the hook for the entire loan. She's a single mom from a previous marriage and basically her new and freshly dumped fiance smooth talked her into this and a few other high dollar purchases.

Challenge: Is there a way the car loan can be undone? It's 6 weeks old and only has 2000 miles on it. Anybody got an idea?

Thanks,

Chris

 

[old_man]

Not really. Even if you sold it, there would still be a balance on the loan to be paid off due to depreciation. That might be as high as 30% or more.

From what you say, it sounds like his name isn't on the title or loan, correct?

 

[IslanderOffRoad]

I'm in the business, not much she can do other than sell it or trade it in

 

[lawagoneer]

She can turn it into the finance company and walk away from the loan. The problem is she will take a hit on her credit. She needs to decide is the one hit from walking away from the loan is less bad than potentially several hits and a possible re-possession from keeping it and trying to pay when she can't really afford it.

A side note Dave Ramsey's "Total Money Makeover" book would be a worth while read for her as it seems from your description to have gotten into some financial trouble from the failed relationship. Dave Ramsey make a lot of sense and lays out a plan to recover for financial difficulties.

 

[old_man]

She can turn it into the finance company and walk away from the loan. The problem is she will take a hit on her credit. She needs to decide is the one hit from walking away from the loan is less bad than potentially several hits and a possible re-possession from keeping it and trying to pay when she can't really afford it.

A side note Dave Ramsey's "Total Money Makeover" book would be a worth while read for her as it seems from your description to have gotten into some financial trouble from the failed relationship. Dave Ramsey make a lot of sense and lays out a plan to recover for financial difficulties.

Walking away does not free you from paying the depreciation. Sounds like it is time to get a second job.

 

[dan1977p]

She may get a little help from the stealership if she goes back, tells them the story and takes a lower priced used car they can't offload off their hands. I'm guessing they already worked her over so they won't lose any money reselling it as a used vehicle.

 

[cnugent]

She already tried going back to the dealership and to the bank. No dice from them. I told her pretty much the same things you all mentioned here, so far. Pretty hard spot.

Dunno. Well, thanks.

 

[Rod Knee]

There is a bigger take away here that all of us old farts already know. Never go into a financial transaction on a promise. If you "loan" money to someone consider it a gift. If you get paid back consider the repayment to be gravy. Do not co-sign a loan for anyone unless you are fully prepared to pay for it yourself. There is a reason why someone wants your co-signature, and with an adult it invariably has to do with how they have handled obligations in the past.

 

[Bent]

There is a bigger take away here that all of us old farts already know. Never go into a financial transaction on a promise. If you "loan" money to someone consider it a gift. If you get paid back consider the repayment to be gravy. Do not co-sign a loan for anyone unless you are fully prepared to pay for it yourself. There is a reason why someone wants your co-signature, and with an adult it invariably has to do with how they have handled obligations in the past.

Sage words.

I would add that putting it in writing has saved a number of friendships and personal relationships.