QuestionQUESTION: Aloha! I hope you can help me. I purchased a 2006 PT Cruiser in Hawaii and
have always made my payments on time, with the exception of a few
payments late here and there, but that's it. I owe around $15K but now the
car is only worth around $7000 so I couldn't sell it. I took a job offer due to
the economy in Hawaii in Arizona, and now my bank will not release the title
unless I paid $6000 upfront. If I don't pay this, they would not release the
title and they would analyze my account in 4-6 months of employment. I
would still have to continue making my $418 payments while the car sits in
Hawaii, and after 6 months they still would need an additional $3000 to
release the title still!!! In a week I will have to either rent a car or by a crappy
used car in the interim just to get to work everyday. Is there a way to go to a
dealership in AZ, and negotiate to buy a car from them, and use my car in
Hawaii for trade in? I want to know if they would do this since they can't see
the car for trade other than photos, and I will also have to pay up front an
additional $1600 to ship it here if they approve this financing. What do you
think? I feel really trapped and held hostage by my bank in hawaii. They
must be a way. Thank you
ANSWER: I Apologize for not getting back to you sooner, The answer is, being up side down in your trade doesn't matter where your at, It sounds like to me, it's the bank that is the problem. I would think your in the military with the way the bank wants to handle this. What is the difference if you trade in the car in Hawaii or Arizona?? All cars cost the same. I don't think anybody can trade you out of this car at this time, without raising you pymt's, if they can swallow the negative equity in a new loan? I know this isn't what you want to here but you need to try and finish this in Hawaii, if not, you have two options, let the car go or make a trade. The trade part is going to take some cash on your part, I'm sure.
As far as a crappy car, people all day long buy cars and sell them and make profits, I told another person, if you buy a 2003 Honda Accord for $2000 it will still be worth $2000 in two or three years.
Go to a local dealer (It's not going to get much better) see what your credit allows on another car, The dealer will turn in the loan and they will tell you what the bank wants in order to approve another loan with that much negative equity. If by chance they don't require another down payment and you can stand the payment, Take the loan and ship the car, you were going to do it any way and move on.
This is an on going problem today and it's not time for anybody to try and trade in a car with a bank balance.
Reminder, Your payments are around 20 per thousand, You can do the math and see how much you can stand, Example in your case,your payment on neg equity is $160mthly before you add the cost of your new car? Let me know what your thinking and I will try to help!
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QUESTION: Thanks again, Here my next question. I am not in the military. I just left to
get a job in Arizona. The bank wanted either $7 grand to release the title so I
could ship it or just make payments until they reevaluate payments and a
down payment of $3000 again to maybe release title to get the car in AZ. I
can't go back to Hawaii to deal. Should I just try to get a personal loan to
transfer the balance have the az bank take over and pay off the hawaii bank? I
would hate to have to go to a dealership to get another car for trade in order
to get the az dealership to pay off the hawaii bank. In the meantime, I need a
car to get to work. Rent a car is so expensive, especially if I wait to get the
car from Hawaii. Is there a short term lease that you think would work?? Sorry
so long and complicated. Your the last hope. Leila
AnswerWOW! That is some creative thinking and could work. If you had to make a down payment? How much could you make? Do you have the credit and income to open up a second loan, personal or car? Is there some one who could take over your payments? How long are you going to be in AZ and how secure are you with your present job?
