Has anyone given their car back and /or been repossessed and been sued for the balance? How is this paid off?

Question

Has anyone given their car back and /or been repossessed and been sued for the balance? How is this paid off?

Answer 1

I've had to have cars reposessed in my many years in this business. I don't like it but it has to be done. The lender contacts us, letting us know the loan went into default. Sometimes I've tried to intercede on behalf of the customer but it's never worked out.

The lender trusted him/her by approving a loan. That person showed how irresposinble he/she is and let the loan go into default. Sometimes it's a family emergency, downsizing at work or unforseen medical expenses that causes the repo. That's when I tried to get involved because it wasn't a case of someone just blowing off their payments.

But it's never worked. The lender wants the car back now! They'll take it auction and sell it. In years ago, most repo'd cars were beaten up and badly abused. Today they're mostly in decent condition and can get a good price at auction.

But depending on how much you owe and what they get for it, it may not be enough to cover your balance. When that happens, they demand payment in full immediately. There is no "making payments" on the amount.

If they claim you owe $5000 or less, they'll file in small claims court. If it's over that, they'll take civil action against you in superior court. Once they win (they always do), they'll have your wages and bank account attached if you don't pay up within a specified time, Usually two weeks at the most.

If you don't come up with the balance owed, it'll show up on your credit report. It'll be piggy-backed onto the repo which will be a double whammy for you.

Answer 2

Whether you give it back, or they find it and come and get it, it goes on your credit report as a repossession, and ruins your credit for seven years.

Once it is taken the costs of finding, getting and storing it are added to the amount you owe.  Eventually it will go to auction where it gets sold to the highest bidder.  That amount will come off your balance, and you will be sent a bill for the balance remaining.

They will want it in a lump sum.  After all they trusted you before to make payments, and you didn't.

Ignore them and they will take you to court, get a judgment against you and attach your wages.

Answer 3

You work, earn money, pay it back.  Is that what you mean?

The reason there is a deficit is that you didn't pay enough for what you got.  The car's value fell, while you drove it around and enjoyed it.  You did that.  Depreciation is one of the costs of car ownership.  You didn't pay enough to cover that when you had it.

Answer 4

they will keep after you till you die

Answer 5

You can get sued for the balance if the bank deems it is worth their time and/or money.  If you owe a lot of money expect to get a civil judgment against you.  As far as how it is paid off, you pay it off.  Getting your car repo'd doesn't always mean you are off the hook, it just means you don't get a car anymore.  If you owed less than what the car was sold for you are in the clear.  

Usually repos don't sell for market value.  When a bank puts the car for sale in their front yard, the general public low balls the bank trying to get a steal.  And if the bank takes the car to a dealer auction, they are somewhat at a disadvantage, because a lot of dealers just walk right past the repo lane because the cars are very often neglected pieces of c**p.