How would a repo of a vehicle affect your credit?

Question

Lets just say for instance one could not afford payments on a car anymore, they are way upside down to where they cannot trade it or better their positon in any way. If said person quit paying on the vehicle and it was reposesed, how would this affect their credit? What else could happen to a person if this happened?

Answer 1

surely major damage -- then they resell the car and any balace left owing on your contract becomes due and payale and if you cannot pay they get a judgment from the court and either place a lien on your home or garnish your wages for te balance.

Trust me they resell the car to the brother in law for cheap

Answer 2

Car gets repoed....hopefully auctioned off and you are responsible for the balance after auctioned off, if not sold, you're responsible for the debt anyways. The only thing that wipes out a repo on a credit report is a bankruptcy. Repos, bad debts stay on your credit report 7 years, bankruptcy 10.

If you're thinking about letting it go to repo....don't do it....put a for sale sign on it and see if you can sell it first.

Answer 3

Auto finance is what I do for a living and this is what will happen.

First your lender will sell the vehicle at auction for less then it's worth and come after you for the difference plus all fees for towing, storage, reconditioning, auction fees, interest and anything else they can think of. This will amount to several thousand dollars and if you do not agree to pay they can take you to court, get a judgment and at that point attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like cars, boats, land and homes.

All of this will show on your credit for the next 7-years making it very hard to get any other types of loans without paying massive fees, huge down payments and State maximum interest rates.

You would be much better off selling the vehicle and taking out a loan for the balance, that way your credit would still be intact.

Answer 4

Uhmm it would seriously jack up your credit.

You didn't pay so they took the vehicle away...every month that you car loan is past 30 days due your credit score is quickly erroding.

If after repossesion you still haven't made good on your payement, they'll sue for what you still owe. They'll get a judgement against you and start garnishing your wages and or taking any other assets you have.

You need to get in touch with them ASAP