My car was repossessed! Does it pay to reinstate the loan?

I financed a 2001 Mustang convertible. Five year loan. The car was priced at $13,000, and the loan total was $33,000. Yes - a really cruddy, upsidedown loan.

I%26#039;ve made 40 payments (more than $20 grand), and there is still $10,695 outstanding on the note.

Last week, the car was repossessed. For reasons that I won%26#039;t bore you with, I can get the loan reinstated if I pay the payments I missed.... about $1,000 total, plus of course horrid fees for towing and storage.

My question is.... is this worth it? I%26#039;ll be paying the back payments that I owe, plus fees, and will STILL owe $10,695 on a car that now only has a Blue Book value of $7,200 or so. And has 82,000 miles on it.

My instincts are to let them auction it and make arrangements to pay the difference between what they get at auction and the $10,695 outstanding on the loan. My credit is ruined anyway, soooo.... am I better off to do this, rather than pay the money to reinstate?

THANKS!!!!!!!!!!!!!!

My car was repossessed! Does it pay to reinstate the loan?

If the vehicle has not already been reported as a repo? You might have a chance to reinstate the loan and trade it in on something else. You are only $3,500.00 upside down and believe it or not that is not a lot any more.

If you do reinstate the loan insist that they not report it as a reclaimed repossession because this will look almost as bad as a straight repo and will show on your credit for 7-years.

If you let it go back, you are going to end up with your credit being ruined and owing them several thousand dollars by the time they sell it for a lot less than it%26#039;s worth and then add all of the fees involved.

My car was repossessed! Does it pay to reinstate the loan?

Get the car back but DEMAND that they remove the repo entry from the credit report.

If you are going down $10,000 for a car that has a blue book for $7,200, then they should be willing to remove the repo entry for you cooperation to pay off the note.

GET THAT IN WRITING or it%26#039;s hearsay!