greg0723

i have a 2006 gs 300. my payoff amount is 31900. lexus said they will give me 22500 for it. the sales person told me i do not want to just give the car back that it will mess my credit up. is this true even though i would pay off the remaining balance? i wouldnt pay the remaining balance all at once but in the future.

rominl

iTrader: (4)

i don't entirely understand, what do you mean "just give the car back"? you mean you are financing your car but you don't want the car now and just want to get rid of it?

KA8

iTrader: (1)

I think if you trade in your car and you owe more than what its worth then you need to pay it off at the time of trade in so that title is released to new owner. So you can't pay it over time. The dealer won't be able to sell it.

greg0723

i just want to get rid of the car. no trade it just get rid of it.

The G Man

You have a upside down loan, you get get a personal loan and pay off the remaining balance, otherwise, the car is not yours to sell, it belongs to the back.

drpepper

As KA8 was saying, you're in the condition known a being "upside down" on your car loan, i.e., you owe more than the car is worth. It cannot simply be sold as the car is collateral on the loan. Since the collateral is insufficient in value, if you were to sell the car, you'd have a deficiency balance of $9,400 that would have to be paid with the sale transaction in order to close your loan (and allow release of your lender's security interest in the car).

In other words, you have to come up with $9,400 to get out of the car. You don't own the car, the lender does, and you can't just decide to pay the deficiency balance on terms you decide on.

LexFather

you can't just get rid of it. You have a legally binding contract. Is it a lease or is it financed?

If you owe 31k, you owe 31k and if you get anything less if u sell it/trade it, you will owe that amount to the finance company.

If it gets repossessed, you are ****ed for 7 years on your credit.

TWong350

iTrader: (8)

Wow...what a terrible position to be in. Good luck.

whlkev

why sell it to the dealer, sell it privately to minimize the loss

drpepper

That's your best best

And reading your initial post again, you absolutely do not want to turn the car back in. As has been said, since you can't actually sell it without a transaction totaling $31,900, you'd be doing what's called a voluntary repossession. The lender wouldn't technically give you any specific amount. They would have the right to resell the car (auction) and then sue you for the deficiency balance. The guy at the dealer was telling you the truth--it would damage your credit.

lexus4jess

wow, sad news to hear.good luck.

greg0723

thanks for the info guys. im looking to getting into a 2006 is 350. oh man that thing moves neevr drove on until today. good lord never drove anything with that amout of power.

rominl

iTrader: (4)

before you think too much about the is350, you need to clear on the gs350 first. definitely sell the car private for more and you will need to pay the difference to make it 31k, send to lexus, so they can release the title to the new owner. that's probably your best bet. then you can start working on the math for the is350...

logicalman

if you now want the is350 then you can trade in the gs300 and have the remaining balance put onto that car. but that wouldnt be a good idea so like everybody else said sell it privately.

greg0723

i'll try to sell it privately. kbb says its worth 24000 private sell. it is certified pre owned too would that carry over to the next person if i sell it privately? should i sell it for 24k? how high should i go?