Help me advise fellow driver...

JimS

Well-Known Member
Yes - this is a repost. Put it up in the Vehicles section to hopefully avoid nonsense posts, but apparently not many go looking to read in there. So, against my better flame resistant judgement, here goes:

I have a friend who has two cars. Both are 2014. One is a Ford Fusion that he paid $18k for and the other is a Fiat 500L that he got for 21K and rolled the trade in value and financed for $27K. His monthly payments are $390 and $475 per month respectively.

No need to get into how he got to this point. That's irrelevant. Not here to bash the decision making process. It's what to do from this point on.

The Fiat is about to get repossessed. First thought is let it, drive the Ford and keep the lower payment. Take the credit hit and learn from it for 7 years.

But then I got to thinking - He can actually probably break even on the Ford and make the payment on the Fiat. If that's the case, sell the Ford, keep the Fiat from being repo'd, protect your credit. Pay on it as much as you can and when you're out from under water on it, trade it for the cheapest, nicest 2011 Fusion you can.

With regards to Uber, it really doesn't matter if you Uber in a Fiat or a Fusion. Both are X. Your ratings are based on the cleanliness of the car and your personality. I'm in a Saturn Ion and still have a 4.85 on Uber and a 5 on Lyft.

Any thoughts?
 

Another Uber Driver

Well-Known Member
Moderator
If he pays only "as much as he can", the note holder will re-possess it, anyhow.

One thing to consider is reliability. I have not heard too much good about the cinque cento. I have heard good things about and my experience with the Fusion has been excellent (I have two: a 2014 for UberX and a 2015 for a taxi).

Another question would be is there enough business in his market to make the payment on the Fiat and have something left for himself?

I would expect that he might be better off with the lower payment on the Fusion.

The 2011 is five, soon to be six years old, as it is. If he actually can keep the Fiat and it does not spend too much time in the shop, he could be trading in a four year old car for a soon to be seven, by the time that he gets everything straight.

While preserving the credit has its advantages, I would expect that he would be better off driving the Fiat until the repo man gets it, then go to the Fusion. If he keeps the Fiat, lets go the Fusion and the Fiat starts to spend too much time in the shop, he loses both. If the business does not hold up, he could have trouble making the higher payment on the Fiat and lose both.

I would keep the Fusion.
 

JimS

Well-Known Member
  • Thread Starter Thread Starter
  • #3
If someone repos your car and you owe $10K more on it than it's worth, will they come after more than the car?
 

RJA

Member
JimS: Yes. You are personally responsible for the loan. It makes no difference what the car is worth. If they repo the car and sell it and you have 10K left on the loan, you are responsible for paying it. If later you are forgiven that debt watch out for the 1099-C reporting the 10K as taxable income.
 

MSUGrad9902

Well-Known Member
Doesn't seem likely he can save the Fiat unless he comes up with a pile of cash quickly - if it's about to be repossessed he's likely more than one month behind, probably more like 3, which means he owes at least 1500 to keep the repo man off his back. After 30 days behind on a payment, his credit likely already took some kind of hit. Better to cut your losses at this point and make sure you keep one reliable car for transport and/or rideshare. He should be able to make enough ridesharing to cover the fusion payments and the arrearages (if any) from the fiat.

Hope he learned his lesson.
 

Another Uber Driver

Well-Known Member
Moderator
If someone repos your car and you owe $10K more on it than it's worth, will they come after more than the car?
They can, but they must go into court, secure the judgement then secure an order that allows them to attach the assets. This takes time, as, once they notify you of a judgement, they must give you time to pay it. If you do not, they can haul you into court for a Financial Examination to locate your assets, then get an attachment. This takes time. Further, in order to get you into court for the Examination, the creditor must serve you. Much depends on the laws of the State, City, County or whatever jurisdiction, but, if he can duck the process server, he can buy more time.

If he owes money on the Fusion, it is harder for the creditor to attach it.
 

UberEricLong

Active Member
Obviously let the Fiat go and keep the Fusion. That is a no brainer. However, if either car gets repossessed if will be more detrimental than a ding on his credit. They will sell the car at auction and get only a percentage of its value and your friend will be responsible for the difference, repo fees, accruing interest, court fees, and others I can't think of at the moment. If he owes $10,000 now it will turn onto $25,000. The lean holder will easily get a judgement and then garnish wages. The only remedy will be paying off the balance or file bk. I would do everything in my power to avoid repo. Start with communication with the lein holder. That can go a long ways.
 

JimS

Well-Known Member
  • Thread Starter Thread Starter
  • #9
Well, I don't understand his total situation, but it sounds like if he can afford the $475 (which is only $85 more than the Fusion), he'd be better off staying out of the court system, I'm sure. Get that paid down, then buy the car of your dreams. Maybe driving a Fiat for a few years will be punishment enough for getting himself into that bind.

And, yes, DudeGuy, asking for a friend. I proudly drive an '06 Saturn Ion.
 

DudeGuy

Well-Known Member
Well, I don't understand his total situation, but it sounds like if he can afford the $475 (which is only $85 more than the Fusion), he'd be better off staying out of the court system, I'm sure. Get that paid down, then buy the car of your dreams. Maybe driving a Fiat for a few years will be punishment enough for getting himself into that bind.

And, yes, DudeGuy, asking for a friend. I proudly drive an '06 Saturn Ion.
No offense intended, I just naturally lean towards snarky. Hope your friend figures it out without getting even more screwed.
 

wk1102

Well-Known Member
They can, but they must go into court, secure the judgement then secure an order that allows them to attach the assets. This takes time, as, once they notify you of a judgement, they must give you time to pay it. If you do not, they can haul you into court for a Financial Examination to locate your assets, then get an attachment. This takes time. Further, in order to get you into court for the Examination, the creditor must serve you. Much depends on the laws of the State, City, County or whatever jurisdiction, but, if he can duck the process server, he can buy more time.

If he owes money on the Fusion, it is harder for the creditor to attach it.
Most likely what would happen is the original debt holder would sell the debt on the remaining balance for a small percentage. Then he owes the debt collection agency. Some of the companies are more tenacious about collecting than others but they all are pretty vicious.
 
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