2007-01-25 08:27:26 · 12 answers · asked by ev c 1 in Business & Finance ➔ Credit
Even though your reposession was a "voluntary reposession", depending how much you owe on the loan now, you may still be liable for some payments.
The bank will resell (typically through auction) the car and if they don't sell the vehicle for the full outstanding balance of the loan (plus fees), you will be held legally liable for the remaining balance.
2007-01-25 08:36:30 · answer #1 · answered by dougzinboston 4 · 0⤊ 1⤋
Yes, there is really no advantage in returning your car. Your credit is ruined for up to 3 years after the loan is all paid off. The bank will sell it to an auction company where it will bring in pennies on the dollar to put toward your loan and the bank's collection agency will continue to hound you until they collect the money or you drop out of sight.
This is one reason that the "credit score" is such a crock anymore. If you default in good faith (things sometimes happen) and make every effort to responsibly take care of your debts while I, on the other hand, just say to hel* with it, drive my car until they end up stealing it and then cut a deal with them to pay 50 cents on the dollar to pay of the loan. My loan will get paid off faster and my credit will be restored earlier. By being so harsh the credit agencies are screwing themselves. Keep the car, it's not illegal, and go have some fun fun fun until daddy takes your T-bird away!
2007-01-25 08:41:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you can't make the payments on your car, call the bank and be honest with them, tell them that you need to talk about a possible arrangement that will allow for interest only payments for a few months until you get ahead, but if you take it back to the bacnk they will most likely sell the car for market value and charge you the difference, so you have to pay or wreck yout credit
2007-01-25 08:36:23 · answer #3 · answered by ? 1 · 0⤊ 1⤋
don't return the car to the bank. Try and sell the car privately for as much as you can get for it. Then give that money to the bank. My guess is that you will still owe them like 2 thou or so.
2007-01-25 08:41:49 · answer #4 · answered by tripsnpig 3 · 0⤊ 0⤋
Selling the car yourself is the best way. However, if it's not enough to pay off the note, you'll have to get a friend or relative to pay the difference because they will not release the title when there is a short payoff.
2007-01-25 17:50:29 · answer #5 · answered by Anonymous · 0⤊ 0⤋
They will sell the car wholesale. That means for about 1/3 of what you'd get selling it yourself. You will still owe the difference between your loan balance and the proceeds after they charge you for the cost of selling the car.
2007-01-25 10:38:25 · answer #6 · answered by STEVEN F 7 · 0⤊ 0⤋
if the car is not what the note on the car is worth then yea, the bank is not going to take a loss on the car
2007-01-25 08:36:03 · answer #7 · answered by bkbarile 5 · 1⤊ 0⤋
Yes. The bank will sell it and you're still responsible for the balance.
2007-01-25 08:38:38 · answer #8 · answered by beez 7 · 1⤊ 0⤋
Yes, and the same payment until it's paid off. They may offer you a settlement. if you pay in a lump sum.
2007-01-25 08:34:35 · answer #9 · answered by heatherlynn820 1 · 1⤊ 0⤋
Yes and if you don't it will ruin your credit for many years. Since you're going to have to pay it anyway, I would keep the car.
2007-01-25 08:41:24 · answer #10 · answered by strawberry 4 · 1⤊ 0⤋