I met with a gentleman from church today with a rather unique situation that I wasn't sure how to deal with. Two years ago he impulse bought a new car in IL @ 19% interest (poor credit) so he'd have reliable transportation for his kids. Within days he tried to take it back but the dealer wouldn't budge. Anyway, within weeks he lost his job and has not made a single payment! He recently got another job but only brings in about $800/month, and custody arrangements and school are keeping him from taking more hours or a different job. Ideally, he needs to get rid of this $25,000 vehicle and into something much cheaper but still reliable, but I'm not sure what he needs to do to get out of this. He's told the lender in the past to just take it, but nothing has happened. He said he's not even received any collection notifications.
If you owe 25,000, you're a bad person.
If you owe 25 million, you're the bank's best customer.
If you owe 25 trillion, you're a government.
If some bank / credit company was idiotic enough to loan the fellow the money, that company will have to deal with it.
OP reports that they have not received "even one collection notice".
They should just continue to do nothing, drive the car, and go about life.
The worst thing that can possibly happen is someone official-looking will come and take away the car.
If they literally cannot make the payments - literally, what other option is there?
Maybe in the future the person will be able to resume payments. Maybe the person will die, win the lottery, get a better job, or maybe the horse will talk. Who knows?
The simple fact is if they literally cannot make the payments there is literally no other option, than to just carry on.
Note that since the loan is incredibly upside down, there is absolutely no possibility to "change to another car". Forget it. Drive safely.
As stated, he's made NO payments on this new car. There was a downpayment initially, but that only affects initial principle for the loan. He doesn't have insurance either. He's been essentially homeless the past couple years.
The "only leverage" the finance world has over you is that it can "ruin your credit". Evidently that is a non-issue in this case. There is just literally nothing they can do. They've made no-faith efforts at all to even contact. There is literally nothing "bad" that can happen to the person in this case.
It sounds like a huge corporation was stupid enough to give the person a loan, as part of their desperation to drive lending levels as high as possible. Person should just continue as he is doing.