What happens when you default on an auto loan?
2006-09-01 13:00:57 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
I know they will repo the vehicle, and that it will hurt my credit. I am also aware that it is my fault I got into a mess by being STUPID with my credit.
2006-09-01 13:03:47 · update #1
I agree with Vegas, try and sell it on your own, even if you have to take a bit of a loss.
When they repo the vehicle:
They will show the current listing on your report as a charge off.
They will add "another" listing for the deficiency.
If they sell the deficiency to a collection agency, the collection agency will be listed.
If they sue and win, there will be a judgment listed
4 bad tradelines on your credit reports.
They will take your vehicle and sell it for (if you are lucky) somewhere around 50% of the book value, not what you owe but what the book says it is worth.
Then they will go after you for not only the remainder of the amount, but also all of the repo fees, which could run up to $1,000 or $2,000.
Then if you don't pay, they probably will sue. So, you can add court costs and attorney fees to the total.
You could easily end up having to pay pretty much what you owe right now, and that is before any legal/court fees are added.
Also, if you end up paying the deficiency + fees, you would be paying that much money for a vehicle you no longer own.
Not to mention how much more screwed up your credit will be.
2006-09-01 13:29:41 · answer #1 · answered by echo 7 · 0⤊ 0⤋
As you said- you already know that they can repo your car. I'm assuming you also know that your credit will take a bad hit if that happens. You could do a voluntary repossession but after they sell your car, you'll be left with the difference on the loan and no car. You could try to sell it for the amount left on the loan just to get it out of your hair if you're really in bad shape.
2006-09-01 21:55:06 · answer #2 · answered by Vadalia 4 · 0⤊ 0⤋
I would try to find a way to sell it and pay off the loan before defaulting. It will ruin your credit.
2006-09-01 20:14:44 · answer #3 · answered by Vegas 2 · 1⤊ 0⤋
you start thinking of ways for the repo guys not to find U
2006-09-01 20:02:24 · answer #4 · answered by Spaghetti MY 5 · 0⤊ 0⤋
Better get everything out of your car while you can, because it's going Bye, Bye.
2006-09-01 20:03:13 · answer #5 · answered by Grandpa Shark 7 · 0⤊ 0⤋
They will take back your car:
2006-09-02 06:37:40 · answer #6 · answered by Anonymous · 0⤊ 0⤋
They'll reposess your car.
2006-09-01 20:02:55 · answer #7 · answered by First Lady 7 · 0⤊ 0⤋