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Credit is no longer needed at her age. Is she going to apply for any more loans, credit cards, mortgages? Credit is important when you’re young!
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KPWCSC Jun 2023
That is what we thought when we let our father's mobile home be repossessed. The next year he received a statement from the loan company who repossessed it and he had to report $XX income on his tax return. I am guessing they sold it for less than the balance owed and so what was being written off was counted as income for my father. It probably was not that simple, but it was reported to the IRS and ended up costing our father in taxes. So no, credit is no longer important but how the matter is handled may be very important.
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Just as an example, if this is a 2020 Honda Civic purchased with a $25k loan 3 years ago, the car is still worth about 20k.
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anonymous1732518 Jun 2023
Exactly much easier if it's a Toyota or Honda
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Check out what carvanna would offer on it too if you dont want to deal with regular people.
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TouchMatters Jun 2023
Yeah. Those regular people are hard to deal with ... (joking).

Is a good idea. Might make things much easier. And frankly, with the way of the world today, perhaps safer.

Gena
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With only 8500 owed on the car you could probably sell it for that or more depending on the year and condition if the car. Dont let it get repossessed there is value in selling it.
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I myself would not worry about her credit being ruined. Whatever you do, do not make any payments yourself. This can be considered assuming a loan.

Allow them to repossess the car or sell it at profit to Mom if you are POA and able to do so.
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iwvicki Jun 2023
Find value of car in Kelly Blue Book, sell it yourself (not that hard) or maybe to Carvana and pay off the loan. She may have some money left over for herself. Do not repossess, big mistake.
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Voluntary repossession will almost certainly result in the car selling for less than the loan balance. So there will be a larger amount due, which the lender will try to collect, then sell to debt collectors, and so on.

Confirm that there is no co-signer since their credit would also be at risk.

Best case scenario: you need to get a feel for the private party value of the car, using kbb.com or similar.
If it is more than the loan balance, you should consider trying to sell the car. You can find out from the lender how to most efficiently pay off the loan and transfer the title to the buyer.
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If it is "repossessed" you/she gets nothi8ng, nada, diddly squat for the vehicle. It can be sold and the loan paid off and any remaining goes into her account as an asset that can be used for her care. Chances are pretty good that a car "driven by a little old lady, from Upper Darby PA only on Sundays" might get a better price than the same car driven to and from work every day. Check the "Blue Book" value and see what you get. There are so many ways to sell on line now you do not even have to go anywhere.
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I'd sell the car myself. A dealer will not give you fair market value.

Pay off the loan and don't worry about mom's credit. At her age it isn't an issue anymore.

Having this out of sight, out of mind will ease your mom's worries.
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MJ1929 Jun 2023
A dealer will pay dealer value, not private party value. They're two different prices on kbb.com.

They're not necessarily "not paying the value," but they have to make a profit reselling it, and selling to a dealer usually goes hand-in-hand with buying a replacement vehicle, not just a straight sale of the used car.
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I would sell it, look up the Kelly's Blue Book price and go from there. If you cannot sell it call the finance company and have them pick it up. I wouldn't worry about her credit at this point.
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TouchMatters Jun 2023
Yes. And have a strong tall man with you when you meet with potential buyers. Be safe out there.
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Go to the dealer who sold her the car. Maybe they will buy it back and pay off the loan.

If Mom has no assets, she cannot afford an AL or MC. Medicaid usually doesn't cover these. It covers LTC.
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From what I heard, used cars are going UP in price. Check to see how much you can sell the car for. If more than the loan, then sell it, pay off the loan and keep the rest to spend on your mom.
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How much is the car worth?
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TouchMatters Jun 2023
Seems like Blue Book price is the starting place.
Lots of good thought-provoking ideas / advice here.
What a team we are!
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