surrender or repo?

[Walnut]

Spoke to road loans. First off you can only have one auto loan. Any others must be paid off or traded in. I told them we were surrendering our Honda on Monday and he told me that would show up as a voluntary repo and we'd get declined. We have to show the Honda account as zero balance. Honda finance is not being very helpful. No surprise.

Anyway we were approved thru road loans for $30000 at 15.39%. But due to getting another car and not having a way to get Honda to show a zero balance we can't take it as they will decline it upon submission.

[SinkingFast]

Hopefully someone more knowledgeable will chime in here, but,.........

I don't think the Lender can say "Repo" if you surrender the car in BK.

Repo indicates and involutary action. The Lender had to physically take the car back from you. Which is not the case in your situation. You are voluntarily surrendering the car.

I think the Lender should report IIB and that's it.

[CindyLou]

thats right!! it CAN NOT be reported as a repo and it won't, but only because of the BK. If you voluntarily give a car back without it being included in BK, then it is still a repossession and is listed on your credit report as "voluntary repossesion or voluntary surrender". the problem is that until you surrender it you probably won't be able to squeeze a zero balance letter out of them. I used capital one blank check because they did not require a trade in. It was a few months after my BK was over, so Ford had already reported as a zero balance on my credit report.

[SinkingFast]

I learned something over at CreditBoards.com that might help you, Walnut.

There's a GM Auto Dealer that posts over there. He's written a few FAQ type threads with some very interesting info.

If Mom is willing to co-sign your loan,............... Ask Mom if she will be the Primary on the loan.

If Mom cosigns for you, she'd be responsible to pay if you don't anyway. So the Credit Bureaus will report the loan as Joint on Mom's and your Credit Reports. The only way anyone would know a difference would be to look at the original loan paperwork.

BUT,........ If Mom goes on the loan as the Primary, Mom's good credit will get you a better interest rate.

You can even go back to Dealers you've already been to and reapply. Just by reversing the name order on the loan app and listing Mom as the Primary, it creates a whole new lending profile.

[CindyLou]

Just by reversing the name order on the loan app and listing Mom as the Primary, it creates a whole new lending profile.

So true! With capital one I did it two ways. 1. with me as primary and hubby as secondary(16.9%) 2. hubby as primary and me as secondary(10.95).

Intersting b/c at the time hubby was unemployed and we had filed joint BK. Guess ya never know.

[Walnut]

OK - well we just bought a 2006 Toyota Sienna. They went thru Capital One and used my wife and I (she is a homemaker). No problems at all and now the same dealer we got the Toyota from is looking for a second car for me. Sweet! Steep interest, 72 months, but we also got GAP insurance and a 100,000 mile bumper to bumper warranty. Will possibly refi in a year or just pay extra principal. I am happy. As to the Maxima, Triad insisted on discharge papers showing Honda as discharged and even so, once they see Capital One they will balk at giving us a car. So - no endorsement from me for roadloans and Triad.

[SinkingFast]

Traid finances to customers directly thru Road Loans.

If you go to Triad's website, it says so there.

Triad is the largest "non prime" auto loan Lender in the country. I love how they say "non prime" as opposed to sub prime.

You "might" have applied twice with Triad. Once thru the Dealership and once thru Road Loans.

[SinkingFast]

Here's a link to Triad's website:

http://www.triadfinancial.com/

You have to poke around a bit to find the part about Road Loans and "non prime" lending.

[Walnut]

Yeah - the whole business about them only allowing you one auto loan on your credit file is a bit disturbing for those of us with a family of five. You know what else is weird? I applied at Cap One, got declined, Maxima dealer applied at Cap One with mom as comaker and got declined, Sienna dealer applied at Cap One using me and wife and get approved. I guess some dealer's financial depts are stronger than others. So - words to the wise - don't give up or worry about inquiries as all the ones that are obviously auto loans in 14 days count at one hit. And yes, out of BK expect high interest rates and also don't expect your former creditors to be very helpful when trying to clean up your report - you are probably going to need to be persistent.

[jawome]

So you are saying that once you have voluntary surrender on your credit report, its gonna be difficult to get a car loan? I got mine dismissed about almost 2 years ago. my credit score is 598,626,671. can anyone tell me if I will qualify for cap one. thank you . Im new at this

[Walnut]

Yeah, I'd say you have a good shot at Capital One's blank check. First off though - try Lending Tree. They often work through Capital One. See what you can get.