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amnolan · Nov 18, 2011, 12:36 PM

I currently owe 9,000.00 on my auto loan with chase bank, The crank shaft in the engine broke and the damage is going to end up being close to 4,000.00 to fix total.. I can't afford the 300.00 payment a month on top of trying to save to fix the damage. What will happen to if I default on the loan? I would call them and tell them I can't afford to pay it anymore. I'm a single mother and I'm in a tough situation right now and need a car for the winter. I can easily buy a used car and it would be cheaper than paying a payment every month and not being able to drive it tntil its fixed. And that will take months until I have the money together to fix it. Grr, I don't know what to do

JudyKayTee · Nov 18, 2011, 12:40 PM

If you can't make alternative arrangements to pay the Bank will seize the van, sell if at the best price it can get and if you owe a difference between that price and the loan they will proceed to get a Judgment against you for the difference, plus costs and expenses.

Of course if it's repossessed you will have trouble getting another loan to buy another vehicle.

smoothy · Nov 18, 2011, 12:40 PM

Default on it and you aren't going to get a loan from anyone else...

Take out a loan and get it fixed... if you can afford to buy another used car.. you can afford to do that to get a used engine put in. And save your credit record.

Because they can and will go after you for the difference and get a judgement against you, garnish your account and wages until they are paid... and a collection on your credit history will all but guarantee nobody will give you a loan in the near future.

A used engine installed should be far less than $4K dollars.

amnolan · Nov 18, 2011, 01:19 PM

If my truck is repo-ed, what does that mean for me? My credit is already crap and I won't be looking into another car loan anyway. My engine is broke and I can't afford to fix it and I can't afford the payments of my loan. Will I have to pay the loan back anyway if its repo-ed?

smoothy · Nov 18, 2011, 01:28 PM

If they can't sell it for enough to cover the loan after a repo... they are likely to sue you in court and win a judgement and get a garnishment against you, your property and wages. THen you won't stand any chance of getting a loan for anything with a collection on your record.