I recently purchased a 2003 Ford F-350 Truck and did not trade in my current truck. It is a Ford F-250 and the dealer did not want to give me a fair trade in value. I found several things to be wrong with the new truck. The dealer acknowledged this and fixed some of them, however they would not take the truck back. In the mean time I have tried to sell my old truck and have had no luck, mostly due to economic conditions. I would like to know what all is involved if I default on my new truck loan and how much it would effect my good credit? My wife is not listed on the loan. I have so far made no payments. This is a 100% financed loan including extended warranty, sales tax and all dealer fees. I put up no collateral except the truck itself. I think my current credit score is around 650. I can not afford both payments. Any advice on this? What are my options? Thanks for the help.

George_1950

Welcome to AMHD. You are between the proverbial rock and a hard place. Your financing contract must be honored or you will suffer the consequences: the truck will be repossessed, sold at auction, and most likely you will be sued for the deficiency. If the lender gets a judgment, you could lose your other truck, bank accounts, etc., as well, through sheriff's sales and garnishment. The one ray of light I can see is whether you may have a warranty claim under your state's sales law, or the Lemon Law (Moss Magnuson Warranty Law, I believe). Personally, I would do almost anything before letting the new truck get repossessed and going through all of that.

ScottGem

The dealer is under no obligation to take the truck back unless there is a lemon law violation. So, As George says, you are stuck. Maybe you can sell the new truck instead of the old.

If you default on the loan, you will suffer a big drop in your credit score and having been so foolish as to use a 100% loan, you will owe a significant amount in a reposession.