Ok my car just got repo'd because I couldnt afford it anymore, now I'll be about 12,000 in debt,?

Question

if i gradually pay it off (meaning come income tax time pay little by little each year) will it clear off my credit? Meaning once its paid off (4 years later) will it still be classified as a repo???

Answer 1

This is a tough situation. One of the most important aspects of repo is credit worthiness. Once the bank has possession of the property, in this case the automobile, it will inform the three credit houses about the mishap and will be placed as a loss, which will deduct valuable point ratings. The bank will begin the process of trying to account for what is owe to them, and will auction the automobile, giving you the first option to buy the car. If you decide to override this process the bank will issue a collection process which entitles them to collect any debt that is owe after the auction, in this case you will be held responsible as per contract. If not paid this will remain until paid.

Answer 2

Real world and no bull.....

It will still be a repo and it will stick on your credit. That is the way it works.

Answer 3

It will still be classified as a repo. However if you owed 12,000 when it was repoed. You will not be 12,000 in debt. What i think will happen is that the loan company will in turn sell your vehicle and for example if it sells for 5,000 they will take 5,000 off your 12,000 debt. Leaving you 7,000 in debt. They will in turn seek the 7,0000 from you. You may be able to work out a payment arrangement through them after that time. But im pretty sure they have to sell the vehicle first. At least that been my experience, we've had a few friends go through the same situation.

Answer 4

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.

Answer 5

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