Surrendering non-running vehicle

[Bryan16]

One of the vehicles I will be surrendering is a Mustang that I used for racing on the track. I blew the engine a long time ago and the parts are all over my garage. Do I need to find an engine to put in this car, or will they take it as is? I mean I'm sure I could find something to throw in there that wouldn't cost me much. I'd rather not deal with it unless I have to though. The rest of the car is fairly modified (seats, wheels, etc).

Just wanted to hear opinions. Thanks!

[lrprn]

One of the vehicles I will be surrendering is a Mustang that I used for racing on the track. I blew the engine a long time ago and the parts are all over my garage. Do I need to find an engine to put in this car, or will they take it as is? I mean I'm sure I could find something to throw in there that wouldn't cost me much. I'd rather not deal with it unless I have to though. The rest of the car is fairly modified (seats, wheels, etc).

I'm assuming this car is paid for, right? If it is, box up the parts and put them in the back seat. It's up to the trustee to find an as-is buyer or tell you hiow much he/she wants for you to keep it. Putting an engine in a car you are surrendering is like cleaning your house so the housekeeper you are paying to clean won't think ill of you! lol! Save your energy and your money!

[Bryan16]

Actually, I still owe quite a bit on the car (~$20,000). That's the problem. Of course the car is only worth 2/3 of that if it was running, but without an engine it's probably not worth a 1/4 of that amount. I just wasn't sure if the vehicle is supposed to be in working condition before I surrender it back to Ford.

[familyof7]

no it does not have to be working I would just put the broken engine parts in the back seat so they cant say oh he sold the engine to defraud us before we picked it up

[Keebler]

I'm kind of in a similar situation with my truck. I lost a rod bearing and the engine has an awful knock.

I went ahead a bought a new engine to replace the one that died because I'd really like to keep the truck. The problem is that I'll owe the credit union about twice what the truck is worth. I can keep the truck but I'll never get clear title until the full amount is paid off.

I'm in the process of taking the old engine out now but I might not finish the project in time for the bankruptcy. There's a chance that I'll give it up with a broken engine or no engine at all. I wonder if they'll abandon the truck and let me keep it under the circumstances. The other thought is a redemption of some sort but I don't really want to take out a loan at 24% APR either.

For now I'm going to proceed as if I weren't going to file because I'm treating the problem exactly as I would have without bankruptcy. I'm less worried about getting in trouble than I am about finding a way to keep my vehicle without paying for it twice.

[Bryan16]

I hear you on that! My Mustang is part of the reason I am filing. Not only did I pay well over MSRP for the car (was too young and dumb to think clearly), but I had $10,000 negative equity added in from my trade in, plus a 14% interest rate at 6 years. I just wanted the car to impress my friends and have fun at the track, but now years later I still owe more than what the car is worth. Insurance, upkeep, payments, etc have been killing me. And the engine going out made me realize it was time to make some changes. College expenses, losing a job, and having $1000's in CC debt added fuel to the fire.

Ford is going to be really mad when they see the car. But I'll do what I can to put it back to stock if it prevents being sued. I don't know what to do.

[familyof7]

cars break down often that is the reason they are repoed. So I would think leaving the BROKEN engine in the car VS no engine at all would be fine.

[JRScott]

Leave the bad engines in them if you are surrendering them, don't waste the money guys.

[Keebler]

Leave the bad engines in them if you are surrendering them, don't waste the money guys.

I understand your logic but the problem is replacing a vehicle at a time like this is even more expensive than fixing it.

My truck is worth about $6,000 wholesale (when it isn't broken) and more than $9,000 at retail. I'm not sure which choice is more painful, surviving with just one vehicle or fininancing a replacement at 24% APR at full retail price because my credit is ruined for the forseeable future.

The truck I've got is fine and I've taken good care of it so it can serve my family for as long as possible. It seems like abandoning it now won't really save me anything.

What I'd like to do is fix it, keep it, and continue to pay off the $6,000 loan I have on it. The problem is with the credit card and line of credit that are tied together with the loan. They can't take it away away the truck -- even after it's paid for. They CAN refuse to release the title to me so I'll be stuck with it forever and I'll never have any equity in it.

I wish there was a better solution for everyone.

[JRScott]

You can get a vehicle for less than a couple thousand that'll get you around. No need to really fully finance a new one. Yes it won't be the best vehicle, but it'll get you by until you are in better financial shape.

That's what I'd suggest doing, find something that runs that's cheap (less than a couple thousand), surrender the truck you owe on during bankruptcy, keep the new cheap car (make sure its value is less than your exemption).

Then once the bankruptcy is done start setting aside some funds that would have gone to the car payment. Let this build up for a year or two, and then go buy the newer vehicle without a loan. You'd be far better off.

Never buy a car that is newer than 5 years old, the depreciation in the first 4 years is so much that its not really worth it.