Contributor
I had no idea that newer cars could rust that fast. I realize salt is still being used, but thought manufacturers had pretty much licked the problem. I remember going to Chicago in the '70s, and seeing cars with the fenders rusted completely off. We were shocked then, as the cars were not that old.
Rick Potter
Contributor
Do not let the bank repo it... credit ratings are important and besides that, the bank will sell it for a little bit of nothing and they will still owe the bank the difference of what it is sold for and the amount left on the loan AND any costs the bank incurs to sell it, legal fees, etc....
Find someone to fix it or just eat the loss...
Member
^^^ This.Originally Posted by Ed Aumiller
What did the bank do to get stiffed with the car? Your friend asked them in good faith to loan them the money. It doesn't seem to me that the bank did anything wrong...
Additionally, the bank will sue them for the difference in what is owed, plus legal and disposal fees, less whatever they get for the car. "Turning it into the bank" is a losing proposition for your friends.
Contributor
What a crappy situation. I agree: Don't go delinquent on it. Not worth the financial fallout.
Any more details about what specifically is rusted out that "won't pass inspection"? I would say that I know quite a bit about working on cars and am trying to imagine what specifically this could refer to. Like, bumper falling off or???
A thought: Find a place that will pass it. In my experience, there are all different levels of "inspection" that inspection stations do. Maybe take the car to a diferent part of town? Just thinking out loud. Hope they get some resolution on it.
Erik Loza
Minimax USA
Member
I remind our gentle readers of the background to the original post:
"The Senior Citizen that owns the vehicle, has owned it for just under 3 years."
Unless the Senior Citizen is intent on purchasing another car on credit, or buy a home -
the amount of damage that can be done in forfeiting the vehicle is small.
Why are borrowers put to a different standard than a larger business?
- They're not incorporated, and debts are viewed as personal, rather than professional liabilities.
It's the same idea behind any strategic default.
If you're upside down on a depreciating asset - dump it.
It's not a moral question, it's about money.
Member
No, it IS a moral question.
Contributor
I'd get a second opinion from more of a private body shop, like others have said.
Member
Money has no morals.
Hire a lawyer.
Start bankruptcy proceedings.
Stop paying the note on an depreciating asset.
Commercial contracts are broken, every day.
Are those immoral acts?
By what measure?
Certainly not by the one that matters - in civil court.
http://www.nolo.com/legal-encycloped...fter-repo.html
Member
They have paid 3 years on a used 7 year old(now 10 year old) vehicle and still owe money on it? Don't know what the terms were, but think I'd just take the loss. Sounds like it was a bit of a gamble to begin with. Bankruptcy seems a bit extreme.
Contributor
I live in Minneapolis/St. Paul area and there are plenty of cars driven in the winter older than 2004 still on the road. My parents have a 2000 Dodge Grand Caravan that is still going strong although it is starting to rust badly at the top of one of the front strut mounts. When that eventually breaks it will be the end of the vehicle. A lot of work has been done in Minnesota to reduce salt usage because a lot of salt in the past was just wasted.
Member
I wouldn't be surprised if the car was totaled in a wreck and was repaired and resold.
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