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I Purchased a Lexus But Can’t Afford It. What Should I Do? – Lex

“Dear Steve,

Purchased a car ( Lexus ) 4 years ago. I paid payments for 2 years and got behind on payments. The dealership ( finance company) Would not work with me on catching up my payments.

I have been told me only option is to give the car up ( and it goes into auction and they will come after me and garnish my wages for the difference)

or

Pay it off ( which I cannot afford because they have tacked on too many penalties and fee’s and are not willing to negotiate)

What should I do if I can no longer afford my car and the debt collector is looking for it ?

Lex”

The Answer

Dear Lex,

Get Out of Debt Free Hotline

You can hand the car back or refinance the balance and pay off the original lender.

If you hand the car back the dealer might then sell the car at auction and send you a big bill for the difference between the auction price and current balance due.

If you hide the car or take it out of state you may be facing legal issues as a result. Please consult with a local attorney if you don’t plan to hand the car back.

Last choice is to negotiate with the current finance company and see if you can come to an agreement on a payment you both agree to.

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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