If someone leased a car and payed on it for a while then moved out of town and stopped payin what can happen?

Question

well i know someone who leased a car and they asked me this question and i really couldn't answer it so i did to the best of my knowledge which i really don't know so i said to give me a little time to be sure so someone who has the best and accurate answer please answer this thanks

Answer 1

I used to work for a bank in their vehicle account collections department, and was a supervisor for a while.

Most banks or lease companies have their own protocol as to when they will view an account as noncollectable, and they will  begin the process to locate their vehicle and attempt to re-claim it.

If the vehicle is a lease, it is the property of the bank that is financing that lease.  Once they decide their is no way they are going to recuperate their money, they will begin the process of repossession.

If the vehicle is repossessed, then the bank will sell the vehicle at auction to attempt to recover their loss.  Whatever the vehicle is  sold for is subtracted for what the lessee owes, then the balance would be due in full after the sale is complete.  That amount is called a deficiency balance.  Payer's credit score will drop somewhere in the neighborhood of 250 points, and their credit will be ruined for the next seven to 10 years.  

Answer 2

Repossession

Answer 3

It'll go on your credit report.........

then you'll have bad credit.

Answer 4

The car will be repossessed and they will be assessed oodles of penalties. If they did this in an underhanded way, they also may be jailed for grand theft. When you lease a car you don't own it. By moving and keeping it and not paying the lease, you are in essence stealing the car. If your friend is granted internet access from their jail cell have them let us know how their scam worked out.