Overhaulin'

is it possible to junk a car, with no title,still owing money on a loan?

my car is a 1999, and i took it in for MINOR repairs the other day. Turns out, it needs MAJOR repairs, almost equal to the value of the car. The car is still on a bank loan. the car is NOT worth fixing. I feel stuck. I thought about trading it in, but i don't think that work either, because it would be an upside down loan. what i would like to know is: can i junk the car, still owing money on it with no title? the bank has the title until the car is paid off. i feel it would be more affordable for me to get another car, without a trade in. also, if the junk option isn't possible, can i get the loan co. or dealer to buy back the car? i also don't want to keep paying for a car that is not in my possession, if that's the way it ends up going. anyone have any suggestions? what are my options? also, can i get another vehicle through the same loan co. and maybe work it that way? i feel really stuck and don't know what to do.

Public Comments

1. I may not have a solution to your problem, but I definitely do not recommend junking the car. It is the collateral that secures your loan, and technically belongs to the finance company until your loan is paid in full. If you were to junk it, and the finance company found out they could "call" your loan, which means they could demand that you immediately pay the outstanding balance in full.
2. Describes about 10% of the trades I used to see especially the lien, but your options are pretty narrow. You mentioned getting the dealer to buy back the car, is he the lien-holder? if so you may want to talk to him about a renegotiated note with repairs (specify the garage don't let his grease-monkey take a stab at fixing it). If it is a bank you are simply on the hook for the debt, car condition is irrelivent to them, unless you know the loan manager.
3. only thing you can really do is get another or fix that one.... you cant sell what you dont own... so that will not work
4. Don't be an idiot. You borrowed the money, and it MUST be paid back. It doesn't matter how much enjoyment you get out of the money. You borrowed it, and it MUST be paid back. Crushing the car is not going to solve your problem. It's just silly. Your agreement with the bank prevents you, and they will sue you, and they will win. Easily.
5. First thing. You can't just "junk" the car. The junk yard won't even take it without the title and you won't get the title until you pay off the loan. You're best bet is to sell the car and then pay off the loan. Start all over again.
6. The car really isn't yours to junk. The bank owns it. Even if you could junk it, you'd still have to keep making the payments. The debt just isn't going to go away because the car is in a junkyard instead of your garage.