my car broke down but i still owe 3000 on it and cant afford to fix it what do i do?

the cost of repairs will be more than the car is worth. If I stop paying it and let it get voluntarily repossessed knowing its not drivable will I be sued? or arrested? Or will it just look very bad on my credit report? I need a car and It would be cheaper and a better investment getting a new one than it would be just to fix the car i have.

6 thoughts on “my car broke down but i still owe 3000 on it and cant afford to fix it what do i do?

  1. Don’t sweat it. Let the car get go back to the lien holder. They will sell it at auction and come after you for the deficiency. They will make multiple attempts to collect on the debt, but over time you will get less calls. They may sell this bad debt to a collection agency who will seek to settle with you. You usually can settle with these companies for about 20% of what you owe. Meaning the difference of what you owed on you loan as to what they sold it for at auction. So, if you owed 5000 on you car and they sold it at auction for 2000 then you would have a deficiency of 3000 dollars. If you settled at 33% you would only have to pay around a $1000 dollars. Once you settle there can be no further collections against you. At that point, you can fight this collection and get it removed from your credit report.

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