What if my car is worth more than I owe, and its repo'd?

Question

I just had my car repo'd this morning.. yay..

I owe 8000 on it, ive been in good standing on the loan for 4 years but was in between jobs for the last 3 months so I have missed 3 payments.. I attempted to work things out with them and by time as I have a job now, but my first paycheck isnt for another 2 weeks from today.. they said sure, we'll wait until the 1st of March.. Where is the car parked now? I said my house.. they said no problem.. and then repo'd it 2 days later.. bastards..

Anyways, the car is worth probably 10k at a auction or 13-15k sold private party... I owe 8k.. So lets say its auctioned off for 10k.. where does that 2k go?

To me? or to the loan company? I'm hoping to get it out of there within the next few weeks, but in the event they dont wait and they auction it, I want to know whats going to happen with the equity i've built up..

Answer 1

Cars sold at repo auctions typically don't bring anywhere near what they might under different circumstances. However if the amount the car is auctioned for is enough to cover the balance on the note, plus any expenses related to the repo, they would be obliged to pay you any remaining funds.

Don't let it come to that if you can avoid it in any way. Borrow from a friend or relative, even get a payday loan to avoid getting ripped off by an auction. You may even be able to secure a new lienholder if you do have some equity in the vehicle. the rate won't be attractive, but check it out. Good Luck !!

Answer 2

while a automobile is repo'd, you are able to owe for the whole value of the automobile, the value to repossess it, the value of submitting workplace work to reposess it, and a penalty value no count if that's blanketed on your settlement or own loan settlement. the value of resale would be taken off, yet considering the fact that maximum of those vehicles are resold lower back to those that're workers of the used automobile plenty, they are advertising lower back to themselfs at a super loss, which you're required to conceal. In different words, the can get you for extremely a super sort of money, on occasion for greater desirable than the automobile is unquestionably worth. Lesson one: do no longer miss automobile money! Lesson 2: by no ability, by no ability, by no ability purchase a automobile from a "purchase right here, Pay right here" automobile lot. ninety% are crooks, and could "loose" money intentionally in the adventure that your automobile is one that is popular which would be "resold" usually.