How does one keep auto OVER exemption?

[jeb]

In FL, we only have a $1,000.00 exemption for one vehicle.

I have looked into buying a new - or used - car and letting mine go back as I am some $4-5,000.00 under on it.

However, when one considers the discounts that are being offered on new vehicles and if one is required to put a down payment on the vehicle, your equity comes in well under the KBB of the vehicle - giving much more than the $1,000.00 exemption.

How does one handle something like this? - jb

[BassBoy]

Keep in mind that auto's are marked up a lot and as soon as you title the car and drive it off the lot, you've probably lost $5K.........so...........you owe more than the car is worth and you've had for a minute. And a new car is probably not going to have a KBB value so soon, unless you've bought a remaining '08 model. Even still, the mark-up is in insane and even if you were to lose $5K just by titling the car, you're probably still upside down. Ask the dealer what would happen to the value if you titled the car, drove it off the lot and around the block and then came back to trade it in.

[jeb]

Bass, that is what I thought - until I went out to actually buy a car.

There are deep discounts and rebates on new cars right now - and most want 10 - 20% down.

Add these together and the actually price you paid for the car is less than what KBB shows as the value of it.

If you are talking about a used car and you put 10 -20% down, you are in the same boat.

In either, the trustee can then take the vehicle and sell it so you lost the car and any down payment.

In FL, we only have a $1,000.00 vehicle exemption. - jb

[ansky0007]

Do you own the vehicle and want to keep it but you only have $1000 exemption? If lets say the car is worth $4000 and you only have the $1000 exemption you can also try to come up with the difference of $3000 to keep it.

[keepmine]

At the end of the day, if you're over the exemption amount the trustee will either seize the vechicle or give you the option to buyout the excess equity.
I agree with Bassboy. KBB may not have updated their values but I just can't see driving off the lot and having equity in a new car unless you putdown 10 or 20% regardless of how hard a bargin you drove.

[jeb]

Keep, if one is going BK, where would they get the money to buyout the auto?

And ref the new car value, there is a dealer in our area that is offering a $22,000.00 car for $13,000.00 and then a small rebate on top of that. If one is required to put a down payment on it, sure looks to me like it will end up with equity in the car if one uses KBB. - jb