How bad doe a repo/voluntary repo affect your credit..for the future?

Question

How bad does a repo / voluntary repo affect your credit?
I can tafford to keep my 07 altima that i got 4 months ago and cosidering getting a voluntary repo ive tried to sell it but im upside down too much and cant come up with the diffrence any advice or sugggestions?

Answer 1

It would be better if you could sell it yourself, even if you have to sell it at a loss and make up the difference.

If it's repo'd, whether you turn it in or they come and get it - it's still a repo.

The blue book value has nothing to do with how much the repo would sell for. Repo's generally sell for very little, many times they sell for around 1/3 to 1/2 of what they are worth (not what you owe)

That will create a deficiency balance which will include fees, even if you take it in yourself, there will be repo fees (prepping the vehicle for sale, moving the vehicle to the auction site, which could be in another state, etc., etc.)

You could easily end up owing almost what you owe right now and not even have the vehicle to show for it when you pay the deficiency balance.

Then, if you don't pay, they will probably sue. So you would have a judgment against you for the deficiency plus court costs.

Your credit report will probably take a pretty bad beating.
You could see up to 4 different negative trade lines on your report.
1 for the original charge off
1 for the deficiency balance
1 for the collection agency
1 for the judgment

The first 3 listed will remain on your reports for 7 years, the judgment could remain much longer.

Before you decide to have it repo'd you might discuss your problems with the creditor. See if there is any way they can work with you.
See if someone you know, family member, friend, etc. will either purchase the vehicle from you or take over the payments.
Try to find funding to pay whatever is left if you sell it at a loss
Try to consider every option you can before you decide to turn it back.

Those options could include paring down your living expenses until you can figure out what to do.
Cut all things that you don't absolutely need - cable tv, high speed internet, eating out, etc., etc., etc.

Answer 2

No finance company will let someone "take over" the car payment. They will have to get a loan to pay off yours, so they can have the car in their name. That is the only way they will do it, and that is good because it won't default back to you. A repo will go on your credit for seven years, and will mess it up pretty bad. What you can do is contact your finance company and see if you could forfeit the car with no negative credit repurcussions...They might be willing to work out a deal, but its all up to them. Get whatever you decide on in writing, on company letterhead, before you do it though, so if something does happen you can send that to the credit agencies and contest it.

Answer 3

Hell, I hate to throw this in your face, but you should have thought about this FOUR months ago.

What has happened in less than 120 days that you have come to your senses to realize that your can't afford a 2007 Altima?

You knew full well when they told you that car note amount on the Truth-in-Lending document AND you had to ADD insurance, gas, parking, and maintenance to your vehicle you couldn't afford it.

You KNEW you were upside down when you left the car lot.

The only voluntary thing you should have done was get up from the table when they showed you the car note amount and walk out of the dealership door and walk home knowing that you did the best thing for YOU!

My suggestion -- try to sell the car, but can you really sell the car when you ain't go no title -- the finance company has that!!

Answer 4

It affects your credit in the same way as does any other repossession. You will be defaulting on a loan/purchase agreement, and the lender will come out several thousand dollars in the red with this deal, since you apparently purchased a brand new car, which depreciates substantially the moment it is titled.

The loan company will not have to pay the expense of having your car confiscated in the dead of night, but your credit rating will take roughly the same hit.

Answer 5

There is no differencfe between a voluntary and involuntary repo. Both will trash your credit for 7 years.

Answer 6

You'll end up paying for it anyway, even if they repo it.

They will sell it for dirt cheap. They will apply the amount they get from the sale towards yoru balance and you owe the rest. Repos stay on your credit for 7 years.

You might as well sell it yourself. I bet you'll get more than what they would. Put it on ebay if you have to.

Answer 7

The problem is they will sell it for almost nothing and then charge you with the difference.