Calling Mr. Repo Man...

Written by BonnieFreemane on . Posted in Financial Advice

Dear Gil

Hello.  I just wanted to know if possible what can I do to get out of the car that I purchased. I can't handle the payment but I have been on time with the payments. I just want to know if its wise to call the REPO MAN and have him come pick up my car. I know it will look bad on my credit but I feel i have no other choice.

Signed,

TG

Hello Teshia,

Thank you for writing in for advice.  DO NOT CALL THE REPO MAN!
 If you are finding that you are not able to handle the payments for the car you purchased, I would try and sell it through a private sale.  I would price it just a little under the competition so that you can move it faster.  If after selling the car you find that you are “upside-down” (meaning you still owe a balance on the car loan), then I would take out a small loan from your bank and make those smaller payments over time.  If you have some money left after selling the vehicle, then use that toward the purchase of a much more modest vehicle that you could pay off in less than 2 years.  While you are doing this, save aggressively so that you can move up in car in a couple years.

Consider this an expensive lesson for now, but if you learn from it, you will be wiser when weighing your wants and your needs next time.

Thanks again.

Gil Michel