2006-11-08 19:39:07 · 7 answers · asked by sweetcheeks 1 in Business & Finance ➔ Credit
Yes you are hon! The repossession of the vehicle due to failure to keep up the instalments, leaves you with a compounded interest that you have to pay as quickly as you can! for every Month you fail to pay the instalments the interest on those failed instalment is compounded! If I was you, I would contact the finance company as quickly as possible and get a minimum figure you need to pay monthly, in order to overcome the compounded interest that they are charging you and will get your loan down to an acceptable level. Then you will have a clearer picture of your debt! And your ability to pay off the loan! Hope you are successful!
2006-11-08 19:59:39 · answer #1 · answered by wheeliebin 6 · 0⤊ 0⤋
When the bank repos your vehicle they sell it at an auction to the highest bidder. The money paid is used towards paying the original loan. If they sell it for a lower amount then your loan amount they will send you a bill with added charges for their service, for the balance of the money owed on your loan.
2006-11-09 03:50:52 · answer #2 · answered by tricia k 1 · 0⤊ 0⤋
Yes apparently so. I filed bankruptcy a couple of years ago because of this happening to me and they took the car, auctioned it and I still had a 11,000 dollar debt with the finance company. They do have to put what they got for the sell of the car towards your loan balance, but it's usually not much money used cars.
You can get another car loan again, but it's not easy at first. Repo's are bad and they can get you for seven years on credit reports to lenders. I got a fresh start through bankruptcy and have had excellent credit for a few years now and was able to get a good rate on a good car loan after two years. But it was a lesson learned for sure.
2006-11-09 03:42:08 · answer #3 · answered by Bard's Babe 3 · 0⤊ 0⤋
Yeeeeeeeeeeeeeeeeeeessssssssssssssss.
You will owe the difference between the loan balance at the time of repossession and what the finance company sells the car for at auction.
Ain't that a blimp?
You will have NO CAR, NO CREDIT, and you still owe a balance on a loan that you defaulted?
Welcome to the real world.
2006-11-09 04:10:31 · answer #4 · answered by DaMan 5 · 0⤊ 0⤋
say you owe $10,000 on the car and they repo it. Then they will sell it at auction and say they get $8,000 for it. You are responsible for any fee's they have plus the difference of $2,000.
But whats worse...now that you have a repo on your credit report. NO ONE will ever loan you money for a car again or at least for about the next 10 yrs and that is with 100% spotless credit.
Repo is not a good thing to have.
2006-11-09 03:42:08 · answer #5 · answered by Anonymous · 1⤊ 1⤋
You are responsible for the difference between how much you owe, and how much the bank obtains for the car
2006-11-09 03:40:56 · answer #6 · answered by Chief BaggageSmasher 7 · 1⤊ 0⤋
You sure are. No if's, and's or but's.
Unless they sold your car for more than you owed.
2006-11-09 04:06:00 · answer #7 · answered by Jack 6 · 0⤊ 0⤋