My friend financed a car for me and i had an accident. She switched to liability coverage prior to the accident. Since the accident in June 2007, we funneled as much money as possible to the auto repair shop and have not made any payment on the monthly note greater than 15% (if that.) I was told over a phone conversation with nissan that they wrote it off as a loss. The mechanic advised me to allow him to put a lien on the car to prevent Nissan from repoing the car. He has recently told me that the lien "did not go through"(?) and that the car may not be there for long because Nissan is trying to take it. MY circumstances are changing and i expect to be able to pay the mechanic's balance and the months of notes that I have not paid. Damage to the car=9,500, mechanic has received 5,500 and my note is 650 per month. What situation am I in? I would prefer to keep my car and somehow continue paying the note. What can be done?
As the company that financed you car, Nissan has the first lien on the car. There is no way that the car mechanic would be able to place a lien on the vehicle given the fact that you still owe Nissan a balance. What you owe to the mechanic is separate from what you owe Nissan. You cannot club both the amounts together. Even if Nissan did write off the account as a loss, they still have the authority to acquire the asset and will keep trying to do so.
If you wish to keep the car, then you should get in touch with Nissan immediately to discuss your payment options before they actually do repossess the car. It is more likely that they will continue with the loan if you can reach a current status on your past due payments. Believe it or not, they do not want your car; they want the money and will be more than willing to deal with you. They generally lose money on repossession. Once a vehicle is repossessed, the vehicle is auctioned, any remaining balance is charged to the debtor. This includes the cost of the repossession. In all likelihood, you will end up paying more money if you let them repossess the car right now.
As far as the mechanic is concerned, he should not have a problem to release the car once you pay the entire amount that is due to him. If you cannot afford to pay the amount in lump sum, you should try to reach a payment agreement with him as well.
I hope the information provided helps you Find. Learn. Save.