High Rates And Repossession

Eric needs to cough up some serious cash to get back his repossessed car. But is it worth it?

QUESTION: Eric bought a car in 2005 with a 20% interest rate and it got repossessed. They need $2,000 to get it back. Dave tells him exactly what he would do in this situation.

ANSWER: Let them have it. You’re going to deal with the deficit when they sell it. Step up and pay cash for the deficit and settle it when they called. It will be about 6 months to a year before they do that, though.