Question:

Possible credit problems because of what the appraisal person said to do with my car?

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Just how much damage would a repo do to a credit report for the first two years, and then longer down the line?

If you took out financing for a car for $8,000 and you still owe $3,500

and the car was appraised for trade in, the car is such negative equity that they refused to take it as a trade in, even though the engine and transmission are brand new because the owner actually spent 5 grand to at least have it running with a brand new engine and transmission, but it still doesn't run well, the paint is chipping off, it has huge dents, what would be best to do with this car?

The appraisal personnel suggested actually letting the finance company come and repo it?

Would it be wise to remove the expensive parts that you paid for first? ($5,000 engine and transmission) ?

Do you think the repo/finacne company would give a fair price with these parts? how about without?

is it REALLY wise to do what the appraisal person at the car dealership says to do, which is to call the finance company to come get the car? It is negative equity because of the way it looks but it has expensive parts inside worth almost $5,000

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  1. No and No !!!!!!!!!!!!

    The new engine and transmission makes no difference at all to anyone unless it is sold to an individual.

    If you remove them you will likely get around $500.00 for the vehicle.

    Once your car has been repossessed, your creditor or lessor may decide to keep the car as compensation for your debt or sell it in either a public or private sale. In some states, your creditor or lessor must let you know what will happen to the car.

    For example, if a creditor or lessor chooses to sell the car at public auction, state law may require that the creditor or lessor tell you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold.

    The deficiency is any amount you still owe on your contract after your creditor or lessor sells the vehicle and applies the amount received to your unpaid obligation.

    For example, if you owe $3,500 on the car and your creditor or lessor sells the car for $1,500, the deficiency is $2,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing.

    In most states, a creditor or lessor who has followed the proper procedures for repossession and sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract.

    Depending on your state’s law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only opportunity to present any legal defense.

    If your creditor or lessor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment.

    An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.

    Repos stay on your credit a minimum of 7 years. Depending on if the company sues you for the amount you owe and you have a judgement placed against you for the amount owed it can be on your credit for as long as the creditor renews, sells or transfers the debt.

    A repossession is the same as a collection account, or literally, a charge off.

    It is considered a derogatory item and can have a significant impact on your credit scores.

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