Mitsubishi Motors Sales Credit 0 down 0 payment ripoff victim Modesto California

Lenora, while I empathize with your situation you signed a legally binding contract with MMCA. I worked for MMSA during the time in which this promotion was available and had/have concerns regarding whom MMCA was loaning money. If you required a co-signer to get the note your credit was marginal to begin. Let's look at the numbers you present: you paid 35K for a vehicle with a sticker of 28K. Was this due to you being "upside down" on your trade in and rolling the balance to the new loan? Was it due to extras you purchased (e.g. accessories, life/credit insurance, etc.)? You indicate you still owe 28K on the truck. Did you expect the loan payoff to decrease when you were driving it without making payments for a year? You indicate the truck is now worth 18K. While Mitsubishi's do not have good residual values your 3 year old truck is still worth 64.3% of the original sticker price. This is a moderate residual percentage on a 3 year old truck. Why don't you try this as a option to filing bankruptcy: get a second job and pay the note. It can be something as simple as delivering pizza during the evening. If you make an extra $40/day that equates to $1,200/month, more than enough to cover your note. I wish you well but don't give up before exhausting all your options.

The problem with turning in your vehicle is this, if your loan balance is higher than the car is worth you are still liable for the difference.

If your vehicle is worth $15,000 and you owe $18,000, even after you turn it in you still owe $3,000 - for something you don't even have anymore. Now you owe $3,000 and you need a vehicle. Of course the dealer or finance company will sell it at auction that will bring less than the 'book' value. So they may only get $12,000 for the car and now you owe $6,000!

So which is better - keeping the car you have making payments or getting rid of it, being $3,000 in debt, and finding a much cheaper car to fianance?

I would highly recommend that you not go into bankruptcy to solve this - it will ruin whatever credit you have now and will for years (if not always) cause you to pay higher interest rates.

Whether you voluntarily return the car or it is collected by a repo guy, it ends up getting sold at auction. Don't leave your stuff inside if you're past due. They'll keep your good stuff, and throw the trash out.

You'll get a statement telling you the sale price. They'll demand the difference between sale and what you owed. It's due immediately.

The account will be sent to collections. If you have something, like a bank account, or a retirement account, they can take you to court and ask to seize it. Close everything. Hide everything.

They can garnish. Usually they won't cause it takes a long time.

If you play your cards right, they end up going away mad. Yeah, they call from time to time. That's about all they can really do.

Consider the car swap game rather than returning it. You swap for a cheap used car. They get the late model Mitsubishi. You get your friends old Tercel.

When the repo guy comes, he's sees you in the Tercel. If he asks, tell him the Mitsubishi was repoed long ago. Laugh at the idiot. He'll go away muttering to himself.

This buys you a ton of time. You make no payment. Save up. Then buy the Tercel. Meanwhile, you're driving right along. Your friend is happy. She/he gets free use of the Mitsubishi until you can pay off the Tercel.

Of course, the finance company is mad. But, that's how life works in the big city. The account shows delinquent until they can auction the car.

Sooner or later, they get a court order to return the car. Hand it over.

On your next new car purchase, you'll need 50% down in cash. Your credit's trashed. The interest rate will be sky high. That happens whether you swap cars or not.

Credit is like quicksand. Easy to miss all the warning signs. Once you're in deep, almost impossible to get out alive.

I have already filed a complaint with your website. At this time I would like to contact Lenora, San Jose, California, U.S.A. and get the results of her situation with Mitsubishi. I would like to turn in my Mitsubishi and wanted to get an idea as to the outcome of her situation and experience. Please give her my email address and ask her to contact me. Thank you.