Is it a good idea to voluntarily hand over a vehicle, when you have taken a title loan out on it?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is it a good idea to voluntarily hand over a vehicle, when you have taken a title loan out on it?
I had recently taken a loan out on my car. Since then it has been stolen and my boyfriend lost his job. The car was found today, but no longer in a driving condition as far as I know. I decided to voluntarily give the car to the loan company but after talking to them found out there was some hidden fees. The loan was for $700, half the worth of the car. Some of the fees include $100 towing, $150 yard holding fee, $50+ cleaning fee, and a couple others which may have slipped my mind. Would allowing to be repossessed be a better, cheaper option?
Asked on December 29, 2011 under Bankruptcy Law, Arizona
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I would not allow the vehicle that you are writing about to be repossessed. The reason is that a repossession is a blemish on one's credit report. Secondly, if you had insurance for the vehicle you should be able to simply pay off the vehicle.
Even if you do not have insurance for the vehicle, if the loan was for $700.00, I would pay off the loan and simply have the car taken to a place that buys vehicles for parts in that donating it to a charity will not get you much of a tax break in the condition that it is presently in.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.