Defaulting on a GMAC loan

[denouden]

So, I bought this car last November. It's a 2005 Cavalier and there's not really anything that stands out as being wrong with it. It's been a great car.

However, the monthly payments are killing me and I really just want to get rid of this thing. I have an idea although I have no clue whether or not it will work. I've tried getting rid of it, and I have too much negative equity in it to sell it and noone so far has been willing to assume the financing for me.

So...I just wanna stop paying for it. It'll get to a point where they want the car back, and I'll say "where do you want me to drop it off?"

So, yah, this may sound like a stupid idea, but I REALLY do NOT want to be paying for this thing for another 5.25 years.

So, my question is this, has anyone out there ever defaulted on a car loan? And what was the outcome? Did they just come repo the car, and that was the end of story? Or did they take ya to small claims to get the money they're out from ya? (The difference between what they sold it for and what you owed)

I realize that this will obviously put a black mark on my otherwise perfect credit rating, but what else could I be looking at here in regards to "backlash" from GMAC?

Thanks...

[jabby_jabby]

Don't default, BAAAAAAAD idea. It'll haunt you forever. Your best bet is to take a loan out (with a bank for instance) to pay the rest of your loan through GMAC, sell the car for whatever you can get for it. There will very likely be a difference between what you get for it and the amount you owe GMAC, make monthly payments for that difference with the bank, and chalk it up to experience.

Go to you friendly neighbourhood bank and talk to the nice folks there, they'll be able to help you out.

[denouden]

Good idea save for the fact that I have tried to get a loan or line of credit...anything to cover the difference and they are not willing to help me at this time. My credit rating is perfect, it's just full at the moment. Although, I really don't see the reasoning behind it..."You have alot of debt, if your debt comes down, we'll loan ya some kash"..."The loan is in order for me to reduce my debt..."..."that's too bad...come see us when your debt is lower.."

haha...I've rethought it and I don't think I'm going to purposely default although it may come to that whether I like it or not....we'll see...

[MagicRat]

There are THOUSANDS of people in the same situation as you. Look up leasebusters.com., or there may be a similar site or service neaqr you. Generally, you pay to list the car in their ads and hope that someone will take over payments.
This is easiest if you have put a big down payment on the car.
If there is nothing down, then you might have to give the buyer a few bucks to swing the deal.

As for defaulting on GMAC, they will sell the car for you then come after YOU for the difference between the sale price and the TOTAL money they would get from you over the next 5.25 years including interest and the car's buy out value at the end of the lease. This usually amounts to several thousand dollars.
They might sue you to get it.

[denouden]

Doesn't sound very appetizing does it? lol

[LeBuick]

Originally Posted by denouden

Doesn't sound very appetizing does it? lol

Back in the day I would have suggested to let it meet a fate so the insurance would take care of the balance but I don't think that way no more...