How To Trade In A Repossession/Closed Auto Loan

How To Trade In A Repossession/Closed Auto Loan

Hello everyone this is calvin russell ceo and founder of 850 club credit consultation hope everyone’s doing well today today we’re going to talk about can you trade in your car and it’s about to get repossessed uh you know i know that of course it’s a tough conversation to have uh but the answer is yes okay so let me explain how you can do this okay so uh for those

Who don’t know i’ve worked at the dealership for uh i sold cars for over six years and during that time frame there were most definitely clients that were coming in and they were essentially uh trying to trade in their vehicle anytime you’re trying to trade in your vehicle and you still have a balanced do and just so you guys know you can have a balance due whether

You are about to have a repossession or you’re not about to have repossession a balanced do is essentially is your current card that you’re trading in is that balance paid off and if it’s not then you have a balance due okay um when you have that balance due they have to call to get what they call a payoff a payoff essentially is uh the exact number uh that includes

The daily per diem uh also if a per diem is essentially the daily interest okay and uh unless you have zero percent you know but even then you know they’re still going to give you what they call a 10-day payoff but either way they’re going to ask for what they call a 10-day payoff and essentially that number is already calculated uh that way a person knows what

That amount is if if you guys have ever logged into your um like you know auto loan account and you saw you’ve seen that you have a balance that’s there you’ll usually see an asterisk and it says you know hey that this is not the payoff balance uh because that’s just the balance that’s like remaining but at the same time it’s not a per diem so for example unless

Like in most cases you owe thousands of dollars on a vehicle right um and what you usually can’t just do um you know you could do a wire or whatever but they usually send a check when they send a check to uh the person who owns a car they’ll know the auto lender per se uh when they have when they send a check to them the is supposed to have that correct amount okay

I could do so many videos on how the dealership just does certain things but either way we’re going to keep this short and simple when they call to get that payoff amount right um that’s usually they’ll transfer them uh sometimes uh they’ll use they’ll transfer them to the collections department so it’s just like if you called and tried to get a payoff and you you

Guys know i don’t know everyone that hasn’t been in this situation but i’ve most definitely been there in the past in my life and you’re calling trying to make a payment and you’re already behind then they send you over to that special collections department and not collections meaning that it’s a collection of your credit report that’s usually what they call the

Recovery department or whatever anyway when you’re behind sometimes they don’t send you to like the regular representative sometimes you get transferred over to you know more trained uh professionals you know to try to know recover that money that’s due and i’ve even seen situations where a person uh was about three or four months behind on their auto loan and

When they were three to four months behind on that auto loan uh they essentially you know got i got transferred over when i made the call to get the payoff and they said hey is a client there right now it’s like yeah they’re right in front of me and i said okay great and they say well you know is the vehicle there right now like yes right outside okay great thank

You so much we’re gonna put you on hold and now all of a sudden you see a tow truck come within about an hour but by that time we had already finalized a transaction uh so at that point in time they didn’t have to pay the tow truck fee it it just really depends on how your lender is but in most cases 90 percent maybe 95 at 95 of time they’re gonna have a balance

Too so let me give you a basic scenario let’s say a person usually first off if you are about to get your car repossessed that means you’re anywhere between two to four payments behind depending on the auto lender some let you go over four months but most are usually gonna start know looking for that car around two to four months when that time frame happens and

You’re that behind essentially you’re behind two to four months payments let’s say your no payment is let’s say 400 a month so let’s say you’re four months behind so that’s 400 a month times four payments that means you’re behind sixteen hundred dollars what happens is the only way that that deal is gonna uh know that that deal is gonna actually go through is that

They add that negative balance to the uh to the next vehicle essentially they have to get that vehicle caught up yes that that vehicle has a payoff amount but in most cases they want to get those payments as well too because just really depends on the calculations most calculations assume that that payment has already been made or the payoff is going to be off so

To keep that from happening just to play a safe they usually add that difference or another way to do it is a person can put that money down now here’s the catch that’s and this is another problem a lot of people don’t think about when you’re about to get a car repossessed your score has obviously you know been tanked uh because of that unless you were like in the

High sevens and then you could probably you can afford about three or four no late payments and might still be in the low sixes maybe high fives but in most cases that’s usually not you know the situation for two reasons number one if you’re in the sevens you’re probably not going to be you know that late that many times but things do happen in people’s lives the

Other scenario is um you know if the score is going to drop now you are more than likely going to put money down anyway it’s amazing how people have five thousand dollars down or three thousand dollars down and they’re behind on their car payment like where the hell’s the money come from you didn’t pay you know but people have their you know paying bill priorities a

Little bit different you know so but the short version is you most definitely can trade in a vehicle that you owe a balance on uh or that you’re behind on payments on or they’re looking for it for repossession um obviously just be prepared to pay that you know whatever that those months are so if you are two or three four or five months behind whatever that is uh

Be prepared to put that you know into the next vehicle obviously they’re gonna see those numbers so be upfront to your sales person about that sometimes they can hide that inside the profit right they just reduce their number and then you know adjust the pricing a little bit so that means the dealership get pays a little bit less too because now that that amount

Of money now goes to uh the next um of course the previous lender okay as a part of the payoff amount so again just be upfront i think a lot of things that people find themselves in situations you just got to be upfront and as long as you’re upfront more about certain types of situations then you’ll see that hey you most definitely can do this okay and just be

Upfront with them and of course not to make this video too long about the dealership itself but if your license is suspended tell the salesperson if you don’t have a license tell the salesperson if you don’t have a job but you got money tell the salesperson again the lender’s job is to i mean the um not the lender i’m thinking on the home buying side uh but the

Finance person the finance uh managers what they call them um you know the finance person they’re go they know that they have banks for all different types of scenarios you just got to be up front be honest you know and that’s how you got to do it especially if you know your situation is not the best now if your situation’s the best you can call the shots right

Because you know the game but if you if you need them more than they need you just be upfront because you’re going to waste a lot of time inside the dealership because what’s going to happen is they’re going to have a bank that’s gonna approve you but then it’s based on certain terms but then those terms you lied about and now it’s like hey show us proof of and

Now hours have gone by when you could have just been upfront and honest about it okay so again you can most definitely trade in a vehicle uh that’s about to get repossessed all right so if you like this video like it you want to share it share it and as always be sure to subscribe as we have nothing but great content on the way thank you all so much have a great

Day you know what actually before i wrap this video up i did want to say sometimes people think that a vehicle is about to get repossessed just because of late payments sometimes a card no just got no uh into an accident and the insurance company has uh they haven’t yet you know decided how they’re going to deem certain things the adjuster could be time frames

You still have to make the payments on that car it’s not up to the insurance company if the insurance company does make a payment i’m sorry the insurance company does decide to pay off the vehicle but you got a car payment coming up what’s going to end up happening is they’re going to send you a check for the difference but what happens all the time people say oh

I thought the insurance is going to pay that you got to be on top of this it’s just like a medical bill you know you get that bill from the hospital and your insurance hasn’t paid it yet you need to pay that so and then they’ll go ahead and pay you you know otherwise it’s going to be on your credit and you’re going to be upset and that’s also another reason too

Because that doesn’t mean it’s going to be a repossession that just means that you haven’t been on top of that but usually it doesn’t take two three four five months uh for insurance uh to go ahead and pay off a total cost so just keep that in mind see you guys on the next

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How To Trade In A Repossession/Closed Auto Loan By 850 Club Credit