what will happen if I still owe on my car

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guysmilely's picture
guysmilely
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Joined: Mar 20 2011
Posts: 9
what will happen if I still owe on my car

what will happen if I still owe on my car and hyperinflation and/or the crash of the dollar hits will it be repo?  If the bank won't except my US dollars to make a carpayment.  Will it also be the same for my morgage?  Im still learning and trying to understand it all.....

TD's picture
TD
Status: Bronze Member (Offline)
Joined: Jun 7 2009
Posts: 51
The car repo man will always

The car repo man will always come get your car if you stop making payments. The bank will always expect to recieve it's payments in dollars.

docmims's picture
docmims
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Joined: Jun 17 2009
Posts: 644
#1 The car repo man has to

#1 The car repo man has to find your car to repo it.

#2 The car repo man has to have gas to come get your car.

--2b If you can't afford gas or it isn't available, does it matter?

--2c Is the car repo guy bulletproof? jkSmile

earthwise's picture
earthwise
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Joined: Aug 10 2009
Posts: 848
guysmilely wrote: what will
guysmilely wrote:

what will happen if I still owe on my car and hyperinflation and/or the crash of the dollar hits will it be repo?  If the bank won't except my US dollars to make a carpayment.  Will it also be the same for my mortgage?  Im still learning and trying to understand it all.....

Your car loan and mortgage is undoubtedly denominated in US$, so how could the bank not accept them when that's what the contract calls for? If your obligated to pay them dollars and you do so, then you've fulfilled your obligation. Peroid.

 

lacourre's picture
lacourre
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Joined: Dec 11 2008
Posts: 38
Let's go further with the

Let's go further with the question... what if there is a "bank holiday" OR so much inflation that a new denomination needs to be issued?  What happened in the Weimer Republic with those issues?  Did they re-evaluate the loans into the new denomination... or where they already all paid off due to massive inflation??

p.s. docmims, good points, LOL :-)

rocketgirl1's picture
rocketgirl1
Status: Silver Member (Offline)
Joined: Feb 11 2009
Posts: 230
Just a guess here but

Just a guess here but doesn't contract law on both car loans and home mortgages state payable in US currency only? Problem solved unless TPTB decide the too big to fail banks need them to rewrite contract law (insert Homer Simpsom "doh"!).

passantgardant's picture
passantgardant
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Joined: Apr 13 2011
Posts: 22
Hyperinflation will bankrupt

Hyperinflation will bankrupt lenders, not debtors.  That's the whole purpose, since the U.S. government is the world's largest debtor, hyperinflation will wipe our our national debt.  Likewise it will wipe out your mortgage and car loan.  Sure, you may still owe $100,000 on your mortgage and $20,000 on your car, but in a hyperinflation, wages will grow only slightly slower than overall inflation, so within a few months, you might be making $100,000 per hour!  Any bank or bond holder will be wiped out.  They'll be paid in full, but in depreciated currency.  I.e. $100,000 might only buy a Happy Meal.

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