My sister has a car that is under repossesion and I am the only person in the family willing to help her. I dont know much about these things so I am looking for help. Can she sell the car to a dealership while it is under repossession? What can she do if this is not possible. Links with information on this would be greatly appreciated.
2007-07-18 03:52:28 · 5 answers · asked by bonafidebrother 1 in Cars & Transportation ➔ Buying & Selling
She can sell the car but she would have to use the money to pay off the loan. If she owes more than the car is worth, she would have to make up the difference.
The first thing to do is send a payment to the finance company today!!!!! If they are local. do it in person!! If not, send it by overnight delivery!. This may buy you a little time!
Take the car to someplace like Carmax and see what you can get for it! Call the finance company and get a payoff figure (the cost to pay the loan off today) Compare the two figures. If she owes less then she can get for the car, sell it to the dealer. They will verify the payoff and give her the difference. If she owes more, she will have to pay the balance!
Once a dealer calls the bank and tells them that they have purchased the car, and are sending in the payoff, the bank will call of the repossession company.
2007-07-18 04:11:28 · answer #1 · answered by fire4511 7 · 2⤊ 0⤋
I don't believe you can sell as it is the property of the lienholder (bank) and they have the title which most financial institutions won't release to you unless the lien has been paid. They are going to take possession of the vehicle - that is what repossession means. As far as legal means are concerned, you sister defaulted on her payments and the lienholder is taking possession of their property. Neither she nor you can sell what is not yours. Also, you do not have the title which anyone purchasing the car would need.
The best thing to do is renegotiate with the lienholder and see if you can work out another arrangement. This may mean that you may have to assume payment(s) for this car. Are you ready to do that since it is obvious that she cannot continue the payments? Other scenario is to give back the car (and her credit report will show a negative mark & stays on her report for 7 yrs.). This will affect her being able to get any kind of loan, especially car loan.
With a lack of credit history, cash & carry is the only other option unless you want to co-sign a loan in which case, if she doesn't pay on time, it will affect your credit negatively.
Good luck!
2007-07-18 04:08:36 · answer #2 · answered by Anonymous · 0⤊ 1⤋
I'm pretty sure once the repossesion has started, she has to pay balance of the loan and the fees incurred off if she wants to do anything with it. If it's under repossesion, she shouldn't even still have the car. Whatever you do, don't let her get another loan until she straightens her finances out. I could be wrong though, good luck.
2007-07-18 04:03:12 · answer #3 · answered by badassp51 2 · 0⤊ 1⤋
She owes money to who ever has the title, loan company, bank, or someone like ford credit or GMAC.
It is legally there auto until she can pay off the loan in full.
It would have been better if when she found that she could not make payments on time, to ask you for some help then.
She can let them take it and owe them the balance of the loan, which they will want as soon as the end of te week.
Or you can help her get a different loan from some where to pay them off and keep the auto.
2007-07-18 04:15:08 · answer #4 · answered by ronkpaws 3 · 0⤊ 2⤋
Doubtful seeing as she does not legally own the car.
2007-07-18 04:01:01 · answer #5 · answered by triviapunky 3 · 0⤊ 1⤋