Okay so I need to get rid of my car as it is costing me a fortune to pay off and I am falling behind.?

Question

Does anyone have any information regarding reposessions? Basically I need to know, if I voluntarily repossess my car back to the company I got the loan through, do I have to continue paying the car off? Or if they repossess it do I have to pay it off still as I just need to get out of it and I know I wont get the price I still owe on the car if i privately sell it. PLEASE HELP :0(

Answer 1

If you privately sell the car you get most of the money back you paid for the car in the first place, it really depends on what condition the car is in and how old it is though.

Also, the person who bought it from you takes over your payments this way.

Don't let them repo your car, you will not have to make payments on it anymore, but you lose your investment this way, your investment being the car.

Answer 2

I can't believe anyone on here would think that this is a good idea. Unfortunately, a voluntary repossession is just that: a repossession. Banks view it no differently than if they had to come and get the car with a tow truck. You have not lived up to your side of the loan agreement and it will severely damage your credit. Your really have three options:

1) Find a way to stay current on the loan

2) Sell the car and find a way to pay the difference

3) Refinance the car

Option 2 might not be possible since you may be very behind on the value. And option 3 might put you further upside down on an already bad loan. You might be ok, don't give up yet. Next time just be more careful when you finance.

Answer 3

Even if you voluntarily turn the car back in you will be responsible for the difference of the loan amount and what they sell the car at auction. Your best bet is to sell the car outright (depending on how "upside" down you are). Unfortunately there is no easy answer. Any way you go you will wind up losing. Good Luck!

Answer 4

In many states, your creditor or lessor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a default. In some states, failure to make a payment on time or to meet your other contractual responsibilities are considered defaults.

A deficiency is any amount you still owe on your contract after your creditor or lessor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $2,500 on the car and your creditor or lessor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing. In most states, a creditor or lessor who has followed the proper procedures for repossession and sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract.

Depending on your state’s law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only opportunity to present any legal defense. If your creditor or lessor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.

Answer 5

Did you buy from a Regular bank or Buy here pay here lot? If it was buy here pay here lot you can trade your car to a Regular Dealer who 90% of the time can get what you owe from BHPH cut in half or even 1/10 of what you owe depending on situation, but in any case you will do a lot better. If you got from dealer then any kind of repo, they get car and you get messed up car credit and will not have to pay more but will put yourself in a position not to be able finance a car for 2-4 years depending on other credit. If you private sell, you must pay off before you do. Last resort is to go to financeer and see if you get???? from private sale will they not put as repo with money you give them if it is BHPH and you cannot trade to Dealer due to credit challeged which you had not left if good or bad credit to figure problem out.

Answer 6

Well...if you keep paying the note? Depends on the contract (some of the contracts require insurance and registration). If you keep paying the note you can basically sell it for parts only but if you stop paying the note they'll come after you for the full amount of the note. Sometimes the buy here pay heres don't really come after you if you stop paying...but others are sharks and keep flipping these crappy cars to people with bad credit knowing that they'll default and they can recover and re-sell the car shortly. They typically do this because they require a big up front down payment which they hang on to. It's definitely a scam but it's a scam you willingly entered.

Answer 7

hi it depends on a couple of things, if you hand your car back you will still be liable for any outstanding amount after the loan company sells your car. what type of car do you have, how much do you owe and what do you think the car is worth.

Answer 8

oh trust me. oyu will have to continue paying back the loan. They are still hunting my 81 year old mother for that same thing. amnd believe me. They dont lose any money when they try and resell it. they just tell you that.

Answer 9

Ask a friend to crash an old banger into you. If the car is a right off you never know !!

; -)

Answer 10

well done on acknowledging this, approach the finance company to see if you can make a settlement arrangement.