QUESTION
If I voluntarily surrender my vehicle, will the bank come after me for the difference of the price they sell it for and what I owed on it?
Asked on Sep 24th, 2012 on Collections - Georgia
More details to this question:
I have a 2005 Toyota Sequioa with 84000 miles on it. I went to trade it in and I'm $10000 upside down. I wanted to get rid of it due to the high maintenance cost on this very heavy truck. Also the gas price is terrible. I still have 3 more years left to pay it off. Tires even have to be replaced about every 18 months. I don't have good credit which has alot to do with why the truck is so upside down. I've been approved for a 2012 Camry Hybrid which is very good on fuel and will be a whole lot less to maintain. But before I sign any papers, I need your opinion.
1 ANSWER
Antonio B. Mari
If the balance of the existing car loan is being rolled into your new loan, then the answer is no. They will pay off the balance
If the balance is not being rolled in, the answer is yes. You are still responsible for the difference.
If you are financing through the dealership, typically they roll in the new balance, but you need to make sure this is happening. If you have got some third party financing, then this is not likely happening, but again you should double check.
Answered on Sep 24th, 2012 at 2:55 PM