What happens if you can’t make truck payment?

Hello! I’m thinking about financing a truck and then leasing on to company. What’s the worst case scenario if everything didn’t work out? I’ve seen comment of people losing houses when their business fail, how does that happen?

So if I let’s say finance a $100k used truck, $20k down. If I can’t make any payment, sell the truck and take the difference as loss. Anything else I have to add to the cost?

 

They repo the truck sell it at auction for 15 grand and they sue you for the difference. Which forces you into bankruptcy and destroys your credit for the next 7 years.

 

You don’t just “take a loss” and expect the bank to say “oh well you tried” they still want their money.

 

Yep. Same as abandoning a car note or breaking a lease early.

 

If you used your house for collateral on a POS truck then OMG I don't even know what to say.

I have never heard of that happeneing. You read that here somewhere?

 

So does lease purchase actually make more sense if I want to start oo? For SFI, you pay more for the truck and you have to pay $11k to end the contract. Assuming you have the $11k saved up for emergency, you’re credit will still be good and you can walk away clean.

 

I can’t say. I have never done a lease purchase. It would depend largely on how the contract is written. Personally I think that is a bad idea too.

 

oh, by take a loss, I usually mean borrowing money from family to pay off debt

 

I was browsing through some company reviews here, can’t remember where I saw it. I think I do see a comment about losing house under Mercer’s review.

 

it definitely is. SFI “sell” their new cascadia for $250k, and used 300k mile for $140k. It’s a lot to stomach. But, with turnover rate so high and market right now, it seems like a good failsafe, if ending contract doesn’t break your credit. Still need to ask around about that.