If your vehicle was reposessed do you still have to pay for it?

Question

If your vehicle gets reposessed....and you do not pay to get it back...are you still responsible for the balance of the lease that you owe? I am aware it shows on your credit for 7 years and so on...Just wondering about the balance of a lease if you no longer have the vehicle due to reposession?

Answer 1

They will sell it and you will be responsible for the deficiency balance from the sale and all repo and sale fees. As long as they repo it legally.
By that I mean if they follow all of your states repo statutes in the repo itself, in sending you all of the required notices and selling it in a legal and timely manner.

The sale and fees could add up to what you currently owe (more or less), so if it hasn't been repo'd yet try to keep it from being repo'd. If they already have it and you have a chance to redeem it, you should.

Try to sell it on your own even if you have to take a bit less than you owe - which you will have to make that difference up upon selling the vehicle and paying the creditor/lessor off.

To give you some kind of an idea how repo's work - if what you owe on the vehicle is $12,000 they repo it and the fees could be somewhere around $1000 to $2000. They sell the vehicle, toss the blue book out because it has nothing to do with the sale. They get somewhere around $4000 for the vehicle at the sale

You currently owe $12k
They sell it for $4k leaving a $8k deficiency
Repo fees (split the diff.) is 1.5k

You would owe $9500 - and not have the vehicle to show for it.

Then you don't pay and they sue (which they probably will) and if you lose you will have court costs, atty fees (both atty's), prejudgment interest, post judgment interest etc., etc., etc.

Answer 2

The fact that it's a lease complicates things a bit.

But yes, you owe the balance to which you agreed.

If you were purchasing the car, then the lienholder would have reposessed it, sold it, and come after you for the difference between the amount they were able to get from selling it (usually at auction for MUCH less than list price) and the balance still remaining on the loan.

Since vehicles depreciate (and that process starts with a bang the second you drive it off the lot), you can end up owing a LOT of money in that scenario.

I'm not sure exactly what the difference will be in a lease agreement, but I'm certain that you aren't going to be off the hook. You might want to consult a lawyer for the details (you can usually get a free one-time consultation.)

Answer 3

getting repoed when you are leasing, is like breaking a apartment lease, but even more painful. one ends up owing for past due lease payments, repo fees, and the difference between the value of the car and what the sold it for at auction when you did not become current on the payments and pay the repo fee to get your car back. so this can add up to a couple thousand (depending on how behind you were, your lease payment amount, how much the repo man charges, and difference in value between auction price and what the car was worth when you leased it. )

ouch

Answer 4

Yes. They take your vehicle and auction it off (usually nowhere near what it's worth) and then come after you for the balance. If you don't pay up they then garnish your paychecks. Fun stuff. Went through it with my husband when we started dating. Sucks

Answer 5

Yes - You are responsible to pay for your vehicle - Because when you signed to purchase the vehicle you also signed permission for them to take it back - if payments were not made

Answer 6

Repo'd autos continuously promote for plenty under retail revenues fees because of the fact they're repos. people who have not been making their automobile money possibly began neglecting habitual upkeep (oil modifications, tire alternative, and so forth) long earlier they have been given at the back of on the automobile mortgage. additionally, creditors have a brilliant number of executive policies, so they ought to promote the motor vehicle they repossess rapidly, meaning it has to pass to a wholesaler or public sale. and that they are creditors, no longer automobile sellers, so they have not got any broking lot, no vehicle broking license, and so forth. creditors can't promote at retail via regulation (no merchants licensing) or interior of creditors' monetary policies! they can't save waiting for his or her money & nevertheless meet executive standards for creditors. You owe, via regulation, the version between in spite of they could get for the motor vehicle and in spite of you owe for the unique mortgage, plus pastime, previous due costs & different outcomes, sequence fees, repossession expenses, and so forth. They assume you to pay the comparable way they expected you to pay once you signed the settlement to pay! there may well be some reasonable transformations in info between uk/US, in spite of the indisputable fact that that's especially plenty common settlement regulation from the comparable elementary regulation background. creditors, e.g. people who submit the money which you would be able to purchase a automobile from an authorized automobile broking, have not got retail revenues licensing, and merchants have not got the criminal (or monetary!) skill to lend. Even GM, Ford, and so forth, have separate companies to finance leases and/or revenues of automobiles from their sellers. executive has its hand in each thing, in each plausible pocket - licenses are relatively taxes! and that they require categories of licenses and regulations and expenses for categories of activities. a minimum of four diverse, approved, regulated enterprise operations are paying separate licenses, expenses, taxes to promote you a automobile, finance your automobile, convey jointly your unpaid mortgage, and repo the automobile. Get it?

Answer 7

yes. yes you are, and it sucks.