Other than a horrible bad credit…what does this process entail?
Do I owe them anything? HOw do I go about doing this?
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What happens when you turn your car in for a voluntary repossession?
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5 Comments
the will repo more than just your car if you know what i mean
if the car goes to auction and say it fetches 8 grand but you owe 15 grand guess who makes up the difference.that is 7 grand that you owe to the bank.
The lender will send the car to auction. It will fetch pennies on the dollar.
You will then be presented a bill for the difference between what it sold for at auction and what you owed on the car. Plus, they will add any fees associated with the repo.
If you cannot pay this, they will probably take you to court. They will win. You will then have a judgment on your credit along with the repo. If you cannot pay that judgment, they can and usually will garnish wages or assets (depending on what state you live in).
Not fun.
Do anything you can to avoid this. Get on the phone with your lender NOW.
If you’ve already turned the car back in and it’s already been sent to auction, contact an attorney. This will be your best bet for working out a settlement with your lender.
El grande is exactly right, they will sell your car wholesale for alot less than its worth, then you will still have to pay the difference.
Ruined credit. Possible lawsuit & wage garnishment.
That said, if you are going to give it back, call them first and ask them where to turn it in.
It might be the difference between owing $10,550 or $10,300 after your car gets auctioned off.
That is, you MAY be able to avoid the repo fee added to your deficiency balance by taking wherever they want it.