When your car gets repo'd.. and you still owe about $18,000.. do you still have to pay the monthly payments? And I know your credit takes a hit but are you able to ever get another car?
I pay $650 a month for my car.. and can't afford it anymore. Too much negative equity.
2007-06-05 09:49:21 · 6 answers · asked by andrew a 1 in Cars & Transportation ➔ Insurance & Registration
Repo today, buy another tomorrow. I've read all the previous answers and they are correct. BUT. When you borrow money as a car loan and the loan defaults the bank takes the collateral, the car. Many people are bullied into paying payments after the car has been repossessed because they sold the car for less than the balance on the loan. The only collateral for a car loan IS THE CAR !! I know this, and the bank knows this, and now you know this. The repo hurts your credit. The balance after the sale at auction will show as a charge off on your credit report. Lenders are anxious to make loans. If they loaned too much on the car that's their problem. The dealer who probably arranged the loan must have over valued, (lied about), the car. So you have a repo. Repeat..Lenders are anxious to make loans. That's how they make money. Go car shopping. You will pay a higher rate of interest but not so high as stupidly continuing to make payments on a car that has been repossessed! You'll be suprised at how little effort the bank puts into trying to recover the amount charged off. Maybe two or three calls or letters, which you will ignore. The repo will show on your credit for 7 years and as it ages it loses relevance. Bankers hate when people learn the facts.
2007-06-05 10:35:10 · answer #1 · answered by Dogbettor 5 · 0⤊ 2⤋
Your car is taken and sold at auction. That money is applied to your loan balance. You are still required to make the payments, the only change is that you don't have the car anymore. Chances of getting another car financed with a repo on record, is nil. Since you are upside down on the loan, you would be better off, trying to stop the repo. Get a second job, or find a way to generate some cash to get the loan into a positive situation. You could then sell the car and pay off the loan.
2007-06-05 22:35:34 · answer #2 · answered by fisherwoman 6 · 0⤊ 0⤋
They will sell it at action most likely for alot less tan you owe on it. Whether you pay the remaining or not it will remain on your credit score for 7 years, marked as either paid, or satisfied. One thing you can try is see if they will settle for less, and if you pay it off (they usually want all at once) will they remove it from your record.As far as purchasing another car 6-12 months most likely need a downpayment and the interest rate will by very high. Depends on how good your credit score was previously, before taking this hit
2007-06-05 17:18:52 · answer #3 · answered by Pengy 7 · 0⤊ 0⤋
Andrew I have had one vehicle reposessed. The bank or finance company will want the full 18,000. They will more than likely sell your vehicle at an auction for way less than you owe, and you have to pay the remainder of the balance! It sucks because they sold my truck for 3,000 when I owed 12,000 and they are wanting me to pay the 8,000. Your credit will take a big hit as well!
2007-06-05 17:02:13 · answer #4 · answered by Josh H 1 · 0⤊ 0⤋
Once a vehicle gets reposessed, the Financial Institution must send the vehicle to auction to recieve the highest bid amount. In the event that they receive the payoff amount, (the amount you owe) they can persue the reposession and auction fee's. If however, the auction amount brings less, the Financial institution can file suit against you for the balance (Deficiancy).
In regards to the second part of your question, yes. you can get another vehicle, however, it will take a minimum of six months time, and a larger down payment.
Good Luck.
2007-06-05 16:57:32 · answer #5 · answered by mus1k4u 1 · 2⤊ 0⤋
To answer your question... after they take your car back.. they will sell it.... and they will minus what they get from that from the amount you owed...
keep in mind it wont probably make near as much as you owe...
You will then owe the rest.
Yes, your credit will take a huge hit. and it will be hard to even by a car from a reputable dealer in the near future.
I hope you learned a valuable lesson and manage your finances better for your next car (in the non-rudest way possible) good luck!
2007-06-05 16:56:46 · answer #6 · answered by la428282 6 · 0⤊ 1⤋