husbands car was in an accident. 4K $ of damage. we can't afford it. we can't drive it. what happens if it is repoed? how much will i be sued for? the amount owed plus? or the acv of the vehicle?
2007-10-17 18:02:42 · 2 answers · asked by Mandy 1 in Cars & Transportation ➔ Other - Cars & Transportation
When a finance company repossesses a vehicle, the vehicle is then sold, usually at auction. The proceeds of the sale (less any and all costs of repossession, storage and sale) are applied to the loan balance. You are then liable for the balance.
For example if you owe $10,000 on the loan, and they sell the car for $2500 and have repossession storage and sales costs of $500 (which is a low figure) you would still owe $8000
$10,000 balance minus the net proceeds of the sale of $2000 = $8000.
Your credit rating will also be ruined! Do everything you possibly can to pay off the car and get it fixed (2nd jobs for both of you if needed) rather than letting it be repossessed.
2007-10-17 18:51:30 · answer #1 · answered by fire4511 7 · 2⤊ 0⤋
You will be liable for the amount owing minus the wholesale value of the damaged car plus all fees associated with the repossession, and of course your credit will be ruined.
2007-10-17 18:16:04 · answer #2 · answered by cimra 7 · 0⤊ 0⤋