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Posted in Auto Loans
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ColtonM22

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What can I do with a car loan on that I can no longer pay on a car that no longer runs?
I bought a car and was paying $200 for monthly payments, but lost my job and I am unfortunately unable to make the payments. The car has also stopped working and I do not have money to repair it (extremely expensive engine problems). I have no clue what to do, I bought the car when I was 18, and now at 19 my credit is practically ruined because of it. The car was used and has no warranty whatsoever.

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Top Contributor
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This is a serious hit on your credit but not unrecoverable. Don't give up. Talk to the lender and explain the situation. Once they hear that it has catastrophic engine failure, they will probably be more inclined to move forward with the collection process than if they believe it is recoverable (and can be resold). So, I wouldn't tell them that it isn't running. 

Ideally you want to pay it off, even if you have to work with the finance company and make arrangements. The late payments are not good but a Chargeoff and Collections will be even worse. 

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