Voluntary Repossession?

Question

I am in a real pickle, with the economy the way it is, I am really behind on my bills. My biggest head ach right now is my car. It is in my name, no co-signer, I owe about $15,000.00 on it, and I am a month behind on the payment. I just can not afford it. I am thinking about doing a Voluntay Repossession...has anyone had to do that, if so what am I in for?

Answer 1

Auto finance is what I do for a living and what will happen is the lender will sell the vehicle at auction for a lot less then it's worth and come after you for the difference.

This will amount to several thousand dollars by the time they add all of the charges for additional interest, auction fees, lawyers, reconditioning and anything else they can think of.

If you don't pay they can take you to court get a judgment and then garnish your wages (if your State allows it), attach bank accounts and file liens on any other property you may own like cars, boats, land and homes.

You would be much better off if you sold the car yourself and took out a loan for the difference, this would save you money and save your credit.

Good luck.

Answer 2

they will sell it and any balance owed you still will owe. Plus it will uin your credit for several years to come

Answer 3

Spifiman's answer is great.  Try to sell it.  Don't give up so easy, you don't want this to come back and bite you in the you know what later.  See if there is any other resources you can use first before voluntary giving the car up.

Answer 4

Ok..you owe 15,000.00 on it, they'll repo it, take it to auction...sell it for roughly 6K, if they sell it,  then you'll be responsible for the balance, and they aren't gonna want payments, they will want it in full...Been there and done that...it's a real headache, and when you go apply for another auto loan....sky high interest and it's not fun at all!!  Had I had the choice years ago..I would never have done it....Can you borrow to get yourself caught up??  Only way you can really get rid of the deficiency balance for good is thru a bankruptcy and that's a last straw deal....try and sell it, I know it's hard, but...it's not worth the headache of a bankruptcy or a charge off on your credit report which stays there 7 years, or a bankruptcy that stays on your report for 10....Something to think about, but..I'd hold onto and try and get that payment made, and put a for sale sign on it. Good Luck!

Answer 5

they will take the car back, sell it at auction for a lot less than you owe, and then send you a bill for the balance plus a few $1000 more for repo charges - it happened to me - caused to to go into bankruptcy years ago