I bought it from a company that targets people with bad credit. Do you believe the leinholder has insurance on my loan? Can they garnish my wages? The car is a pile of tin.
2007-03-30 08:58:10 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
It really depends on the lending company. Usually, if a car gets repossessed they auction it off and you are still responsible for any remaining balance. I'm guessing that the insurance the leinholder has is for property damage or auto liability in case you were involved in an accident.
2007-03-30 09:08:49 · answer #1 · answered by JD 2 · 0⤊ 0⤋
When a vehicle is repossessed, the lender sells it at auction and you are responsible for the difference between what they got for the vehicle and what you owed them when it was repossessed plus storage fees, towing fees, and auction fees.
They will take you to court and you will lose. Then they will get a judgment against you and they can garnish your wages, attach bank accounts and any property you have to settle your debt.
It makes no difference weather your vehicle was voluntarily or involuntarily repossessed. Like the other guy said a repo is a repo is a repo. It will show on your credit for 7-years after you pay the total amount you owe.
2007-03-30 16:15:53 · answer #2 · answered by ? 7 · 0⤊ 0⤋
well first the lender will auction off the car where it will be sold for cheap.that will go towards paying off your loan.lets say you owe $5,000 on your car and it sells at auction for $1,500 you still owe the balance of $3,500 plus cost and you will pay even though you dont have the car and it will never be yours now.yes they will garnish your wages and put a lien on any tax refunds etc., untill the full amount is paid and it really hurts your credit.the best thing to do if you can is to have someone else buy the car make sure it is done legally or the only other choice is to trade it in on another car but they will add the balance to your new car.good luck.
2007-03-30 16:14:33 · answer #3 · answered by dixie58 7 · 0⤊ 0⤋
A repo is a repo is a repo, voluntarily or otherwise.
When the car is repossessed, it is sold by the lienholder at auction, and whatever the difference is between what they sell it for and balance of your loan, you will be sued for that difference. After the lienholder sues (and wins), they will garnish your wages.
Your best bet is to live with the car, and continue paying for it. You will have no chance of purchasing another car for several years if you have a repossession on your credit.
2007-03-30 16:09:23 · answer #4 · answered by lincman90 3 · 0⤊ 1⤋
Dpending on your circumstance, maybe you can trade the vehicle in for something less expensive. Don't just throw "good money after bad". Try refinancing if you've had the car for more than a year. These are just a few suggestions instead of really damaging your credit for the next 7 years.
2007-03-30 16:56:52 · answer #5 · answered by pleasure6910462 2 · 0⤊ 1⤋
the only thing is that it would be on you credit. and will affect your credit score. they wont they would just fix it up and sell it.
2007-03-30 19:13:57 · answer #6 · answered by Ryah 3 · 0⤊ 0⤋
they sell it , and you still get to make up the difference between note and sale price . sorry .
2007-03-30 16:08:13 · answer #7 · answered by Anonymous · 0⤊ 0⤋