First off, its not any vehicle of mine. Its a family member, and I might be the one helping them get it back.

The payoff is around 2700, but the bank told him that he can pay 1200 to get caught up and drive the car home and continue making payments again. I just dont want to loan him 1200 and then he sends it to the bank and gets no car. I dont know how these things work. Will they usually let you take the car back if you dont pay it off, I always thought once its repoed, you must pay off the vehicle to get it back. I just dont want him to get tricked into sending the 1200 to the bank and they just say its a payment towards the payoff, now you owe 1500 to get it back. I dont know what to do.

 

If they said $1200 will get him home, thats what it is, but ask them if that included the repo fee or anything else such as a back payment fee.

 

Under most state laws the debtor has the right to redeem a repossessed vehicle one time by paying any past due payments and fees due.

In the event it is repossessed again then the debtor must pay the vehicle off in full to redeem a second time.

Often the debtor will have to pay a separate storage fee to the company holding the vehicle.

 

I'll be honest, family member or not, I would be leery to lend 1200 bucks out. Because, who's to say they won't stop paying on it again, then that 1200 bucks was better off being flushed down the toilet.

 

True, But I am getting it back becuase he wants to take it to carmax and sell it. Then buy one with cash/pay me back. Trust me, I'm really leery or I wouldnt have posted this on here.

 

He said the past due is like 800 and the fees are like 300. They said the 1200 will get him in the car. After that, carmax should still be able to buy it, right?

 

as long as it is under like 75K miles and hasn't been in an accident, you shouldn't have trouble selling to them.

 

CarMax isn't paying retail and he will likely end up with more $$ due to pay off the vehicle. If he has equity and they sell it for more than what is owed, they have to refund it to him.

I wouldn't throw my money in that diection but I know family is family.

Do your homework first!

 

what kind of car? Is it worth than the balance due? If the car is 'desireable', ie fuel efficient, a nice truck, or something like that, which won't require a ton of reconditioning, you shouldn't have trouble getting 'Fair' to 'Good' NADA or KBB trade prices. If the car is as much of a wreck as their finances, then forget the KBB or NADA, you'll be lucky to get what you get

 

Don't pull any money out of your pocket that you can't afford to lose, family or not. I've seen the wheels come off of some of the best deals and plans you could imagine. It happens in a heartbeat too.

 

I agree with code58, don't loan anything that u can accept not getting back!! It could turn a good relationship sour. If he/she could not make the payments before the repo why will they be able to now? As it says at the start of a repo programme "it ain't no joke if u don't pay that note"!!!

 

Never "loan" money to family or friends. If you can afford it, give it to them.

If they pay you back, great, go have a steak dinner.

 

I wouldn't do the loan to your family member.
Family is the worst to loan money to and get it back from.
Let them hit bottom by themselves and it will teach them a lesson.

 

I'm in the waste management business.... it doesn't work out with family.

 

sounds like the family member isn't trust worthy...