Reach out your lender first and disclose your poor financial condition.

Last year I bought a quite expensive car worth $40k. Recently I came across a huge pay cut (almost 30%) and now not in a position to pay the installments. However, if I go to sell the car, I'd lose around 5k according to the KBB. I know it sounds seedy but what would happen if I let the lender take the car back?

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Reach out your lender first and disclose your poor financial condition. Request for some more time so that can get back on the track once again. If he agrees, then it's okay. However, if he doesn't, then you know your options.

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The lender would either sell or auction the car. After that, you'll still be liable to pay the remaining balance. Therefore, it's better to sell it on your own. If you do this, then there are chances that you'll make something out of it.


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