Is a Repossession of a vehicle worse than paying the finance company late on a consistent basis?

Question

Bottom line is that things change. I now have a car that I can no longer afford. I am trying to determine if voluntary repo would be better than the payment being and staying late on and ongoing basis. Please help.

The repo would cause a deficiency balance that I would have tyo pay for. But right now the payment is behind and stays behind. So which is the lesser of two evils?

Answer 1

Your scores are probably already tanking from the late payments, but a repo will be worse.

Not only on your scores, but in your pocket also.

When they repo a vehicle, they will more than likely sell it for roughly 50% or 60% or what it is worth, not what you owe but what it is worth. Repo's sell "cheap".

For example, if you owe $15000 on the balance. They may sell it for $6000 to $7000. Then you will have to add on the repo fees, which could run up to $1,000 or $2,000.

You would be much better off if you can sell the vehicle and pay off the loan. Even if you have to take a small loss that you would have to pay upon selling the car, you would be better off doing that then dealing with a repo.

You should speak with your loan company about your options.

Answer 2

Yeah you're probably better off selling the car if you can...the repo is probably going to really hurt your scores. Voluntary or involuntary makes no difference on your credit, it still is a "repo".

See if you can get a relative to take the car & payments off your hands.

Answer 3

How do you like walking?

The repo stays on your credit for awhile.

Buying your next car may be a challenge!

Answer 4

can you get permission to sell the car and pay the outstanding debt separately, this is something I have been told about where I live.

Answer 5

yes it is unless you let it repo and then bk7 on it --it is just about the same