what happens when you get your car repossesed?

Question

do you still have to pay the difference of what they don't resell for

Answer 1

You owe 20k. They sell the car for 12k. You get a bill in the mail for 8k, "due upon reciept".

There's no such thing of somone oweing what their car is worth in today's America. Ok, well, it happens in about 1 out of every 100 cases, but people that owe what their car is worth or less, are not generally people that get cars repossesed.


William is suggesting that credit is easy and you get it on every street corner. True, loads of companies today are more than willing to lend money to credit criminals at a SUBSTAINTIALY higher APR, which means instead of paying 1500/mo for a mortgage, it'll cost you 2k. Instead of paying $300/mo for a car, you'll pay $425 for the same car. Also, it'll hinder new career opportunities (many employers check credit now), and it'll effect your insurance, both cost and ability to obtain.

Answer 2

If you have been hiding, there is the cost of the skip tracer to find the car. Then there is the cost to hook up and tow, and storage. They will add those costs to your outstanding balance on the vehicle. Then they will sell it at auction. They will subtract the amount they got at auction from your balance, and you owe the rest. If you don't pay, they have every right to take you to court and sue you for the balance. Even if they don't do that, you now have a repossession and non-pay on your credit report, and your credit is absolutely no good. Don't even try to buy a house, or a car, or get a credit card.

Answer 3

The person or company that repossessed it can get a judgment against you for what's owed but very few companies bother doing it. And, even after they get a judgment they may not follow through and garnish your wages - but the record is a mark against your credit rating.

Answer 4

You signed the settlement, so which you own the vehicle. Did the salesperson bodily restrain you and block you from leaving the room? Did he pull a gun on your and threaten to blow your brains out in case you probably did not sign the settlement? Did they convey a brilliant, gruesome, scar-confronted guy named Crusher with a baseball bat in his palms, waiting to kneecap you in case you probably did not sign? Did you call the law enforcement officers as quickly as you get carry of out of there as quickly as that occurred? No? None of those issues occurred? properly, did not your mom ever coach you the thank you to declare, "No thank you!" and only walk away? your in basic terms determination in case you choose to maintain your credit intact is to make the money on the vehicle. If this is reposessed your credit is going to take a substantial hit. And there'll easily be a shortfall on the sales proceeds after this is reposessed alongside with costs which you will ought to pay. you're probably looking a some thousand $$$ and your credit would be trashed. do not blame this on the broker or the sales group. You signed the settlement. in case you weren't particular you'll have walked away and enable it marinate as you mentioned. Why did not you? ok, you will possibly have another techniques. go on your financial company or credit union and see in case you are able to refinance the vehicle. if your credit is effective, you shouldn't have any worry doing this and you should get a lots decrease interest value. optimistically this could decrease your money adequate which you will pay off the own loan with out too lots worry. that's quite the only clever determination which you have. you're caught making money; a minimum of lead them to as small as attainable. do not even think of of wrecking the vehicle. that's coverage fraud. and it will go away you in a similar subject financially because of the fact the coverage is only going to pay e book fee, not your guy or woman loan stability. bear in mind that it takes an incredible crash to finished a clean automobile. you're able to desire to kill your self or an harmless guy or woman in that violent a crash.

Answer 5

When you get your car repossessed... what happens? You dont have a car anymore. I know people who did have their car repossessed and they were asked to pay the difference. I also know a lady who got her car repossessed and she never heard from anyone again. I guess it depends on the resale value of the car.

Answer 6

Don't let these people scare you! You can always get another car, and a house, and a credit card. Credit today is so easy to get even if you have 'bad,' credit. A lot of companies specialize in 'bad credit,' products. So don't worry, just get another car.

Answer 7

yup.. you gotta pay the difference. and it goes on your credit report. If they havent already come and taken the car.. clean it out... get all your stuff out of it. call the bank or lender and make arraingments to have them come and get it. saves some of the embarassment of having it repo-ed. you can even meet them someplace, or make arringments to leave it at the bank. sorry bout your luck.
Blessings

Answer 8

Yes, you are responsible for the negative amount. And there is no difference between a "voluntary" repossession and a standard one.

Answer 9

i own a repair shop,and most of the time they auction the car off and the difference it don't bring they hold you responsible for it,in most cases they usually break even on them ,and you wind up paying nothing,but in some cases you might still get a Bill for the difference i have went to several of their auctions,and the cars they auction usually aren't worth whats owed on them,,but that's what they usually do,,good luck,i hope his help,s.

Answer 10

Yes you have to pay the difference.