After your car is repossessed for non-payment on the loan, do you still have to pay the full amount of the loan? Or just the part that was past due?
2006-09-19 11:20:37 · 20 answers · asked by ? 2 in Business & Finance ➔ Personal Finance
When a vehicle is repossed the finance company will sell your vehicle at auction. You are responsible for the difference between what is owed and the selling price.
For example, if you owe 20K and only sells for 5K you are on the hook for the other 15K.
2006-09-19 11:22:12 · answer #1 · answered by Jim R 5 · 4⤊ 1⤋
This Site Might Help You.
RE:
if your car is repossessed, do you still have to pay for it?
After your car is repossessed for non-payment on the loan, do you still have to pay the full amount of the loan? Or just the part that was past due?
2015-08-18 03:44:21 · answer #2 · answered by ? 1 · 0⤊ 0⤋
They will sell the car but if it is worth less than what you owe then you still need to pay the remaining balance. You bought something and haven't paid in full. It's only right.
You can sell the car before they repossess it if you think you will be able to sell it for more.
2006-09-19 11:28:31 · answer #3 · answered by Plasmapuppy 7 · 1⤊ 2⤋
If it's repossessed I believe you are still liable for any part of the loan they were not able to recover by selling your car.
2006-09-19 11:28:17 · answer #4 · answered by Kainoa 5 · 3⤊ 1⤋
Typically the repo company will sell your car at well below its value. If this covers the outstanding debt and their fees, then you should be OK. If it doesn't, then they could come back to you - although in reality my don't as it gets messy and they have already taken your biggest seizable asset. Call them, let you know that you will be checking the the car is sold for a reasonable value. If they come after you - offer to pay, then make a very low weekly payment.
2006-09-19 11:23:20 · answer #5 · answered by Gary UK 2 · 1⤊ 2⤋
Yes. Once repossessed they will give the option to bring payments up to date. If you choose not to get the car back they will auction it off. The amount they receive from auction will go toward the loan balance. If the amount received is less than the balance of the loan, you will be responsible for the remainder. If the amount received is more than the balance of the loan, you should receive the difference.
2006-09-19 11:30:38 · answer #6 · answered by littlestory 3 · 1⤊ 1⤋
Does each state have its own set of laws? Does a major finance company just follow you around for the rest of your life?
2014-03-25 03:34:51 · answer #7 · answered by bozo 2 · 0⤊ 0⤋
yes you do..the value of your car depreciates considerably, however your finance agreement does not. The way to avoid this is to take out an unsecured loan to pay for the car, therefore if the s**t hits the fan, then the loan coy or bank cant touch the car and you can sell privately maximising resale value and clear the o/s debt.......personally if the s**t really hit the fan the loan coy or bank could whistle for their cash.
2006-09-19 11:28:07 · answer #8 · answered by johnboy 3 · 1⤊ 2⤋
Repossession means you can't repay the loan. If you could pay it, they wouldn't have repossessed in the first place.
2006-09-19 11:28:12 · answer #9 · answered by Anonymous · 0⤊ 3⤋
No...they repossess it so they HAVE it, and you DON'T. So provided the car is worth what is still owed on it, you don't have to pay anything more.
2006-09-19 11:23:10 · answer #10 · answered by MOM KNOWS EVERYTHING 7 · 0⤊ 4⤋