Advising a young couple re: finances...

[Brad Johnson]

Fig,

Have the kids call the lender. See if the lender would entertain the idea of letting them sell the Pontiac outright and take up a small, short-term note against one of the other vehicles to cover the difference. I bet they will work with them (since the only alternative is an expensive and prolonged repossesion procedure).

Brad

[The Rabbi]

Brad, you'd be amazed.  Lenders have procedures and if something doesnt fit in them they wont do it, no matter how much sense it makes.
My wife works for a bankruptcy trustee, administering claims etc.  You wouldnt believe how often a case has money in it and if the credit card lender would just submit a proof of claim he would get paid.  Sometimes the whole amount.  And they dont.  Even when they are told there is money in the case.

[Brad Johnson]

I haven't met a lender yet that wouldn't at least consider at a reasonably viable alternative when the only other option is a repossession. That's not to say they won't pitch a fit, raise the dust, and scream and holler, but in the end the choice between expensive repo and simple short-term collateralized note is pretty much a no-brainer.

If they've kept their noses clean on the payments and aren't currently behind, the most lenders would welcome the opportunity to get all their money back in the easiest possible way.

Brad

[aguyindallas]

Speaking as a Finance Manager for an Acura dealer....

The ABSOLUTE worst thing they can do is let that car repo! If they already have filed BK, they NEED any bit of re-establishment in the credit world they can get. In fact, if it came to it, screw all the credit cards and keep paying that car payment.

You just have to trust me on this...I make a living in this world of finance.