repossession. I have been paying my vehicle on time and more than what is due every month . How will this affect my credit and is there anything I can work out with the finance company so my credit isn't ruined.
2007-09-03 04:15:06 · 9 answers · asked by saasyj2000 1 in Business & Finance ➔ Credit
mister_galager is right but he is very liberal in his estimate of what the vehicle would bring at a repo auction.
Vehicles rarely sell for more than 50% and more often sell for somewhere between 30% to 50% (usually closer to 30%)
Then you would have repo fees attached to the deficiency balance. Even if you turn the vehicle in, there would still be repo fees.
If you fail to pay the deficiency, they will eventually turn it over to a collection agency.
If you still fail to pay, the collector may sue.
You could have 4 negatives reporting on your credit reports. The original loan/charge off, the deficiency balance, the collector and if they sue and win, the judgment.
You could easily end up paying what you owe now (in some cases more) and not even have the vehicle
If you can afford the payments, you might continue to pay on it or sell it on your own and pay off the loan, even if you have to kick in some money to make up the difference.
If you can't afford the payments, since you said that you have kept that loan in good shape by making the payments (and more) regularly, you might speak with your lender about refinancing the vehicle at a better interest rate.
You have a good history with them, they may work with you and give you better terms.
2007-09-03 05:10:33 · answer #1 · answered by echo 7 · 2⤊ 0⤋
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RE I have a vehicle that is being financed by my bank and have had it for one year I would like to do a voluntary
repossession. I have been paying my vehicle on time and more than what is due every month . How will this affect my credit and is there anything I can work out with the finance company so my credit isn't ruined.
2014-09-13 16:37:19 · answer #2 · answered by Ingelbert 1 · 0⤊ 0⤋
If you allow the vehicle to go back in repossession, whether voluntary or not, they will sell it at auction for whatever they can get for it and then sue you for the difference.
This will affect your credit report negatively.
The best thing to do is to sell it for as much as you can get and pay the bank what is owed.
If you can't sell it for what you owe, it's still better to sell it for what you can get and take out a small loan for the difference.
For instance, say you owe $15000, but can only sell it for $12000. It's better to get a $3000 loan for the difference and be making payments on that rather than having them sue you. Because if they sell it at auction, it may only bring $10000. They would then sue you for $5000.
If they sue, the court will order garnishment of your wages.
So either way, you will be paying.
Better to pay a smaller amount and not have your credit ruined in the process.
2007-09-03 11:24:04 · answer #3 · answered by mister_galager 5 · 0⤊ 0⤋
Call the Bank and see if you could get a 2 month extension on the loan. That will give you some breathing time. If you sell the car to a relative for the balance owed, perhaps the Bank will add their name to the note and just keep paying as before.
2007-09-03 17:36:47 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I did the same thing in 1997 and it still shows up on my credit report to this day as a repo. Best bet is to find someone to take over the note or sell the vehicle to pay of the note. sorry
2007-09-03 11:30:50 · answer #5 · answered by tieco72 1 · 0⤊ 0⤋
If you have it repossessed your credit is going to take a big hit any way you do it. Could you talk to them and see if they can help with lower payments. Sell the car. Some other way??
2007-09-03 11:21:10 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Bad bad idea. It will screw up your credit for a long time. Try to sell it for as much as you can and take out of personal loan for the rest of the money owed. It's not worth screwing up your credit for probably at least the next 10 years.
2007-09-03 12:01:04 · answer #7 · answered by fartjuice 3 · 0⤊ 0⤋
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RE I have a vehicle that is being financed by my bank and have had it for one year I would like to do a voluntary
repossession. I have been paying my vehicle on time and more than what is due every month . How will this affect my credit and is there anything I can work out with the finance company so my credit isn't ruined.
2014-09-04 12:48:02 · answer #8 · answered by ? 1 · 0⤊ 0⤋
First of all why would you want to do this?
Secondly, YES it will hurt your credit.
If you think you are not going to be able to make your payments, stop sending them both than is required NOW and contact them and speak to a supervisor about your situation.
2007-09-03 11:21:09 · answer #9 · answered by Anonymous · 0⤊ 0⤋