2007-08-09 15:58:07 · 6 answers · asked by broemma 1 in Business & Finance ➔ Credit
It will not only hurt your credit, it will also hurt your pocketbook.
Repo's are generally sold for very little.
You would be responsible for the deficiency balance and repo fees For example - say you owe $10,000 on the vehicle. You let them repo it and they sell it for somewhere around $3000 or $4000.
Even if you take the vehicle in yourself, there will still be repo fees (which could easily run up to a couple thousand dollars).
If you fail to pay, they may sue you. If they sue and win, you would also be responsible for court costs and their attorney fees.
Some people end up owing much more for the repo than they would have if they had kept the vehicle or sold it and paid off the loan.
Your credit "could" have as many as 4 different negatives on it for the vehicle.
The original loan
The deficiency amount
The collector
The judgment
If you can keep it, keep it.
If you cannot afford to keep it, try to sell it. Even if you have to sell it for less than it's worth and make up the difference from your own pocket.
If you know someone that you can trust to take over the payments, you might consider that.
Before you make any decision about selling.or repo, you should speak to the loan lender first.
2007-08-09 16:25:25 · answer #1 · answered by echo 7 · 0⤊ 0⤋
It depends on your current credit history and if its bad you need to find a point in your life to change it. If you credit is good I say don't. If it is bad then it probably doesn't matter. You need to choose a point in your life when you want to build up assets and your credit score. You need something to drive but most people pay alot of money for that need. If it goes back will it have a major impact of your future or just fix a short term problem that you will have again. When your ready to improve your credit score you need to be ready to make good decisions. Understand the importance of each decision to improve the quality of your life.
sorry I had a few but there are some things to think about here.
2007-08-09 16:25:38 · answer #2 · answered by hydrokat 1 · 0⤊ 0⤋
It will hurt a lot. Letting it go back is a voluntary repossession and is really bad for your credit. If you can't afford the vehicle, you are better off trying to sell it on your own to get rid of it.
2007-08-09 17:41:40 · answer #3 · answered by gogo7 4 · 0⤊ 0⤋
It would be a default and would put a bad mark on your credit report. Any time you applied for credit, and even sometimes apply for a job, they will see it on your credit report.
2007-08-09 16:02:34 · answer #4 · answered by Say What? 5 · 2⤊ 0⤋
why let it go when you still have to pay for it??? you signed a legal binding contract,, the bank gave the money to the dealer,, the bank does not care what you did with it,, the bank WILL GET THEIR money
2007-08-09 17:13:10 · answer #5 · answered by angela j 2 · 0⤊ 0⤋
and when you want to go and try and get another loan then your out of luck or it will cost you more interest
2007-08-09 16:05:44 · answer #6 · answered by infoman89032 6 · 0⤊ 0⤋