Hypothetical: What happens if I stop making payments on my car?
Ok, first off, I’m not going to do this because of the negative repurcussions it will have on my credit history. I’m just a bit curious about the result.
Ok, so I live in Chicago and I have, literally, no need or use for a car. I DO own a car that I’m making payments on. I still owe about 7g’s, but, according to KBB, it isn’t even worth 1. I can’t sell the thing, because I’d never make enough to cover the remaining principle balance.
So, what would happen if, instead of making payments, buying auto insurance, paying for parking and fuel for something I simply do not need, I just stopped making installments on my loan.
What would happen? Repossession and bad credit for sure, but what else? Because something like this would save me close to $600 / month for the next 3 years.
Just curious is all… yeah.
This question is in the General Section. Responses must be helpful and on-topic.