i bought a car and lost my job 2 years later and cannot refiance or find anyone to take over my payments, it is very stressful and i believe if i give the car back shoudnt i just have to pay the difference?
2007-01-15 06:39:29 · 7 answers · asked by Hot Chocolate 1 in Cars & Transportation ➔ Buying & Selling
If you allow the car to be repossessed, either by the finance company coming for the vehicle or you returning it to them, several things then happen. First, it is reported as a repossession on your credit. The car will then be cold, usually at auction. Any and all costs that the lender incurs in selling the car will be added to your balance, and the amount that they receive for the vehicle will them be deducted.
If the balance is more than you owe, you will get the difference back (not very likely at all). More likely, you will owe money. The lender will usually send you a demand letter saying what you owe, and if you do not pay, they will file suit against you!
Once a judgment is issued, your bank accounts, wages and other assets can be seized!
You would be better off taking any job that you can find, working two or three jobs if needed, and keep the car until you can pay down the balance enough that you can sell it!!
Good luck!
2007-01-15 06:51:13 · answer #1 · answered by fire4511 7 · 0⤊ 0⤋
Most lenders first concern is protecting their assets. If you absolutely cannot sell the car, I suggest you meet with the lender. Explain your job situation and let them know that you want to protect your credit if at all possible. They are much more interested in getting their money than in damaging your credit.
Lenders will frequently sell the car and work out a personal note for any balance still due to them. If you can negotiate terms that you can live with for any balance that you owe, you may well avoid a black mark on your credit rating.
Good luck!
2007-01-15 06:56:11 · answer #2 · answered by crustysob 3 · 0⤊ 0⤋
Sorry that you are having bad luck, but when you sign a legal document to purchase something, you are not allowed to return it and walk away. Be prepared to pay. The best option is to try to sell the car, even if you do take some loss. At least this would prevent you from having a black mark on your credit. Good luck.
2007-01-15 06:49:32 · answer #3 · answered by Jan C 7 · 1⤊ 0⤋
When you voluntarily give up the car, the finance company will sell the vehicle at auction (which doesn't always get the best price). Any amount they get will be deducted from your balance. You are, however, legally responsible for paying off any amount left over after that.
2007-01-15 06:52:51 · answer #4 · answered by SUSAN N 3 · 0⤊ 0⤋
It is the same as if they repossess it. The bank will attempt to sell the car. If the sale price is less than you owe on it you may be liable for the difference. You will also probably have a negative report on your credit.
2007-01-15 06:49:16 · answer #5 · answered by PRS 6 · 1⤊ 0⤋
sorry to tell you they have lawyers who designed the contract and they use it without mercey. been there done that. you will wish that somebody had dropped that sucker off in the east river or that it burned up or something so ins. would wipe out the life-long debt they will absolutely put in your file with five red stars. they mean to punish if you let it go back. and they have an arsenal and they are interconnected across the nation. i found out the hard way. sure wish my vehicle had been stolen or anything. lol
2007-01-15 06:50:45 · answer #6 · answered by Anonymous · 1⤊ 0⤋
No you have to pay everything you owe, not just the difference. Or it goes down on your credit as a REPO.
2007-01-15 06:44:13 · answer #7 · answered by kellzz 1 · 0⤊ 0⤋