Immediately after my divorce 1 yr ago, I went and bought my 2014 H-D Street Glide Special

I have since been diagnosed with Frontal Lobe Epilepsy, and can no longer drive 4 or 2 wheels.

TX State law says before I must be free of medicine and seizures for 5 yrs before I can ride the Harley.

Affording the payments isnt the problem...But I continously sit here and scratch my head, "Why am I paying $450/mth if it just sits there?"

Ive thought about doing a voluntary repo but;
1) Its my bike...
2) My Credit...?

Advice/Comments Please

 

How much do you owe on it? I would try to sell it privately first and then if no takers see how much the dealer would buy it for. If you owe more than it's worth and you can afford to pay the difference that would be the best plan. Not sure how your state is but I know most banks will come after you for the difference if you go repo so you may end up paying the difference anyway. At least if you sell it and pay the difference your credit won't go down the tubes.

Sorry to hear about the epilepsy, my girl friends brother has it and it has been hard on him. He is 19 and has not been able to get his learners permit or license and he has been depressed about that for a while. Hope you can make it 5 years and get another bike!

 

The ramifications of a repo are:

Derog on your credit bureau for 7 years. 10 years if they initiate legal action (to get the bike back or pursue deficiency).

Surrendering the bike does not relieve you of the debt. They will sell the bike at auction and apply to proceeds to the pay-off including all expenses they incurred. (getting the bike back and selling it.)

The repo on your bureau has a profound negative impact on your FICO score. The FICO is used in pricing decisions with other lenders and insurance companies you want to do business with in the future. (Future loan interest rates, insurance premiums)

Future lenders will see the repo and subsequent loss on your bureau and will be less likely to extend credit, or require equity (cash down payment) to offer you credit in the future.

Have any other questions, just ask, or feel free to send me a note if you want it private.

 

21,400 is the payoff amount, KBB and NADA have it listed anywhere from 15-18k

I have attempted to sell it, most people just want to take over the payments and keep it in my name. But sorry, if the bank wont lend you the money, why should I let you run off with my bike.

I had one guy offer me 19k for it before, but I don't have 3k to just up and pay off the last bit right now.

What really confuses me about the voluntary repo is, if they are gonna auction send me a bill for probably 7k. Ill pay it, but **** why pay the 7k AND have your credit f'd up makes no sense to me....

 

Since affording the payments isn't the issue, would be foolish to allow repo. Hopefully you aren't upside down on it. If so, I would compare what it will cost you to continue payments and sell later vs the loss now if you sell. If you owe less than the value, then I would sell now and buy another bike later.

 

Tough situation. Sorry to hear about your troubles.

the right thing to do here is to find a private party to buy the bike from you, and then beg borrow or steal the difference to clear the original loan. you might try going to a bank or a credit union, explaining the situation, and see if they can help you out.

 

You aren't confused at all. It appears you completely understand.

If you default on your debt, it is reported.

 

Just saw your last post. Tough spot you're in there for sure. Idk, isn't most of the depreciation in the first couple years? Might be best to continue payments and sell in the future....being you don't have the deficiency cash now.

 

The highest depreciation is in the first years. As well, on the loan you are paying mostly interest in the early part of the loan. So, there will be a point where your bike is worth more than you owe. It's pretty straight forward for someone with finance capability to figure out. Use something like KBB to project the future value ( to be safe use dealer trade in value) of your bike on a yearly basis. Then model the principal owed on your bike over time. Somewhere the two will cross. Then decide if ruining your credit rating is better than paying on the bike until you can sell it for more than you owe.

 

LOL,
What you described is 3 part equation and is anything but a simple calculation.

Determine the residual amount of the vehicle at some future point in time. (future value of current commodity)
Determine the amortization of the your loan. (very easy)
Then over lay the depreciation schedule over the amortization schedule to determine point of equity.

Sounds easy, but the best minds in the auto industry work at that all the time and still miss it.

Think of it this way:
If you can determine the future value of any commodity with accuracy at a set point in time, you will be among the wealthiest in the world.
Any commodity at all: water, gold, salt, real estate, stocks, timber...