I just purchased a brand new 2008 Colbolt in December .....what happens in a car REPO?

Question

My Job is 80 miles round trip is why I purchased the car. I got a call today. We all lost our jobs as of Aug.1. I will have to let the car go back ...whats going to happen to me ??? I am a 56 year old woman. I've never lost anything before..hope someone out there knows..

Answer 1

They will come and reposess your car, then sell it, and you will be given credit for what they receive.  If it is not enough to cover what you owe on it, you will be held responsible for the balance.  Your credit rating will also take a big hit.  You need to Do everything you can to keep making your payments so they don't reposess your car.  Look for another job, get help from a family member ?

Answer 2

You really don't want the vehicle to go to repossession.  You bought a new car, but the minute it was registered in your name, it became a used car and lost a large amount of value.

If you miss payments and it gets repossessed, they will put the car up for sale in auction and the costs of the repossession will be added to what you already owe them.

When it sells, the amount it sold for will be deducted from what you owe, and they will bill you for the balance.

If you don't have that, lump sum, they may allow you to make payments (with interest of course).

So the bottom line is you won't have a car, but you will still have the payments to make and a 7 year hit on your credit rating.

Call the lender, tell them what happened, try to work out an interest only payment for a time until you are working again.

Do whatever it takes to avoid a repossession.

Answer 3

Well if they have to repo it the car will be sold at auction.  Say you owe $15,000 on the car.  It sells for $13,000.  They will come after you for the remaining $2,000.  Start looking now for another job.  Do not wait till Aug 1 to start looking.  Do not avoid the phone calls from collections.  Let them know what happened and give them an idea of what they can expect of getting caught up if you get behind.  

PS - Never buy a brand new car.  1- 2 year old used car is much better.