Submitted by Blucifers_Inferno t3_11xn9vz in personalfinance
About two years ago my dad purchased a used 2015 Dodge Ram 1500 ecoDiesel. He purchased an extended aftermarket warranty from dealer1 when he bought the truck that was supposed to cover anything engine related. It has been having problems since the day we bought it related to the emissions and parts related to the ecoDiesel engine.
A little background, this engine has been notoriously bad to the point of Chrysler being sued in a class action lawsuit and having to pay for repairs or to purchase back vehicles. Unfortunately we missed the lawsuit window to file a claim by about a year. On top of all this, Chrysler and the Dodge dealer2 say our warranties are void because the truck was purchased in Canada by the original owner. We have gone back and forth with dealer2 for months about warranties and covered repairs, but they still maintain it is going to cost $12,000 to fix all that is wrong with the diesel system. We called all the repair shops in the area and none of them are willing to work on the truck. Regular auto and diesel mechanics. My dad owes 20K on the truck still. He believes his only viable options are to spend more money to sue Chrysler/dealer2 or to let it be repossessed by the bank. He is opting for the easier option of letting the bank repossess the truck while after he finds another vehicle.
My dad is almost 64, he has no retirement savings (20K maybe), he lives with me and generally has no use for credit anymore. He does not have any assets to his name for a bank to go after. Are there any downsides for him letting this truck get repossessed?
Edit: Thank you guys for all the replies. This sub is a wealth of knowledge as always. I will try to convince my dad his plan is not going to work out the way he thinks it will and to make adjustments. I also contacted a local lawyer about filing a letter of intent to get money back for the trash aftermarket warranty he bought. Appreciate all the feedback!