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What are the rules of a voluntary repossession of a vehicle?
We can not afford our car anymore. My husband lost his job and finances are tight . I am working but it is not bringing in as much and i use most of my money on food and necessities. So a car payment is out of the question right now. We barely make enough as it is to keep the utilities payed up and provide for our children's needs . One of whom has special needs. And they harass us every day ,sometimes three times a day. What can we do about this? Tired and angry and pissed .
6 Answers
- J E T H R OLv 71 decade agoFavorite Answer
A repo is a repo voluntary or not. If you let it go they will sell it for pennies on the dollar. Then apply that to the loan balance. Then if they decide to (and they may) sue you for the balance on the loan plus all fees to repo and sell the car. Get a judgment and then they can garnish wages or attach assets until paid for. Giving it back doesn't relieve you of the debt...............And your credit will be toast for7+ years...............Selling it at a loss and making up the difference is better than a repo...................md
- mccoybluesLv 71 decade ago
Sell the car do not let it get repossessed.
You are much better off selling the car and going to the lender and borrowing enough money to pay off the balance of the loan than you are having the bank repossess the car and suing you for the loan balance.
It's simple. Almost every person that has an outstanding loan balance is upside down on the value of the car. So when you sell the car there will be a small balance owed to the bank. Ask them to allow you to borrow that amount so you can pay off the loan sell the car and get rid of the high payments.
Scenario ONE. You have a car worth $15,000 and your payments are $425 a month. You owe $18,000 on it but can no longer afford to pay the monthly payments.
So you sell the car for $15,000 and get a small loan for $3000 so you can pay off the car and get rid of it. You now owe the bank $3000 instead of $18,000 and the payments will be much lower based on the smaller loan amount. Then you save some cash (you aren't paying $425 a month anymore so is should be easy to come up with some extra cash) and then go find a cheap car, pay cash for it and drive.
Scenario TWO. Stop making the car payments, Ignore the letters from the bank. Don't talk to anybody. Panic. The car gets repossessed. The bank sells it for $9500 at the auction. They file a lawsuit aginst you to get the $8,500 you owe them. They take you to court, you lose, they tack on the legal fees and you have a judgement against you for $10,000. Your credit gets ruined you can't get another loan. You have no car you still owe the bank a small fortune.
- ?Lv 61 decade ago
If you let them reposess the car, it will do serious harm to your credit rating. Can you sell the car and get enough for it to pay off the loan? That's the better option if possible.
- Anonymous5 years ago
Wow, thankyou! Just what I was looking for. I looked for the answers on other websites but I couldn't find them.
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- Anonymous1 decade ago
Talk to them they may work with you.
Tell them you are willing to give the car back.
If you tell them our hubby is trying to find work.
they will usually want money over a old car that they will have to sell at auction.
You may take the loan to your bank if you are good with them that will give you about 90 days to redo the paper
before the first payment is due.
