What happens if my car gets repossessed?
by Steve Cypher on Monday, January 21st, 2008At Auto Credit Express, we get a lot of questions from customers asking if a repossession will affect their ability to buy another car. But first, you have to understand what a repossession is.
The bank owns your car until it’s paid off
Even though your car is sitting in the driveway, if you are making payments on it, it’s the bank that really owns it. If you look at the vehicle title, you will notice a “lien holder” section where the name and address of the bank are listed. Until you make your final payment and receive a “release of lien” letter from the bank, the car really doesn’t belong to you.
What if I can’t make my payments on time?
It’s important to keep the bank informed if you are having financial problems. By calling them and explaining the problem, you might be able to set up special payment arrangements. Depending on the way your finance contract is worded, the bank may have the right to repossess your car if they receive the payment one day late, so you will want to explain your situation. The bank also has the right to take the car without a court order, so if you do fall behind, don’t expect a letter in the mail beforehand.
What is the difference between voluntary and involuntary repossession?
In an involuntary repossession, the bank sends someone to seize your car. In an voluntary repossession, you take the car back, yourself. If you take it back yourself, you may avoid certain fees the bank will charge you if it has to come and get your car. The effect is the same and a voluntary repossession does not look any better on your credit report than an involuntary one.
What rights do I have if it is repossessed?
Depending on the state in which you live, the bank must notify you within a certain number of days when it will be sold. During this time, it may also be possible to buy back the vehicle for the balance owed plus any expenses incurred by the bank. You also may be able to reinstate the loan by paying the amount you are behind plus expenses.
Deficiency Judgment
If the bank sells the vehicle for more than the amount owed, plus expenses, you are entitled to the difference. If the vehicle sells at auction for less than the contract balance, the bank has a right to go to court and seek a judgment against you for the balance of the loan.
The Bottom Line
If you’re having problems paying your loan, call the bank and explain your situation. Remember that a repossession is a black mark on your credit history and can prevent you from getting a car loan – any type of car loan – for at least a year.
If your credit history does include a repossession, go to our web site at www.autocreditexpress.com. We have helped thousands of people in your situation reestablish their credit. You can also find out if you qualify for a car loan and even budget a car loan for your specific financial circumstances.
I WAS WONDERING I BOUGHT A USED CAR WITH NO WARRANTY I WAS NOT THINKING AT THE TIME& NOW IT’S BROKEN DOWN ON ME.I’M TIRED OF PAYING FOR IT AND FIXING IT WHICH I KNOW EVENTUALLY IT’S NOT GOING TO LAST ANY LONGER.IF I TAKE OUT ANOTHER CAR WOULD THIS STILL EFFECT MY CREDIT.
I’m not a lawyer and I don’t give legal advice, but if you’re asking my opinion, it really depends on what you plan on doing with the first car. If you pay off the first loan or trade the car in and it is paid off that way then no, it would not affect your credit. If the first car is not paid off and it is repossessed then it would affect your credit and your credit score would go down. The other thing that you have to consider - will a bank lend you the money on a second car? You may have to trade in the first car in order to get another loan. If you wait and the first car gets repossessed, it will be very difficult, almost impossible, to get a car loan if you have a repossession on your credit bureau.
WOULD YOU BE ABLE TO GET AN APARTMENT STILL IF THE REPOSSESSION ON YOUR CREDIT REPORT WAS NOT YOUR FAULT?
This really urgent!
I get separated from my husband for domestic violence, we had two cars but both of them was only under my husband name, but the insurance was under my name for the car that I’ve been using. I just found out that the bank repossessed a car that I’ve been driving, I thought that my car has been stolen that day, I was about to bring my child to the child care early in the morning before to get to work and the car was gone…
I had no idea that he stop to pay the loan for the car that I’ve been driving, nobody never contact me to tell me about this. They just came and took the car in front of my property in the middle of the night.
But we have a baby together and they took the car with the car seat, stroller etc.
and I really don’t know how to have those items back. I know that he will never help me to solve this matter, where should I turn for help?
Thank you
Our web site, http://www.autocreditexpress.com helps people reestablish their credit by getting a bad credit auto loan through one of our affiliated dealers. While I don’t have any experience with apartment rentals with bad credit and, again, I’m not a lawyer, I would suggest that you obtain a free credit report from one or all three of the credit bureaus. You can get more information on this by visiting the web site http://www.annualcreditreport.com. Even if the repossession was not your fault, if you were responsible for the loan as a borrower, co-borrower or co-signer, it will appear on the report,lower your credit score and you won’t be able to remove it. If this is the case, you can still add an explanation to the credit report regarding the circumstances of the repossession. This might help your case if you are hoping to rent an apartment.
I BOUGHT 2 CARS AND CAN NO LONGER AFFORD THEM. I LOST MY JOB AND FOUND A NEW ONE THAT DOES NOT PAY ENOUGH. I AM 2 MONTHS BEHIND ON BOTH CARS. I CONTACTED THE BANK AND THEY INFORMED ME THAT IF THE HAD TO REPOSSESS THE VEHICLES THEY WOULD SELL THEM IN AUCTION AND COME AFTER ME FOR THE DIFFERENCE. MY QUESTION IS, IF I FILE BANKRUPCY WILL I AVOID HAVING TO PAY THEM BACK?
I need to return my car back to the garage/bank,cannot afford to pay anymore, what can I do/what steps to follow.
Again, we cannot give legal advice, in our experience the deficiency balance on the loans would be included in the bankruptcy. If you file a chapter 7 bankruptcy you would not have to pay it back, if you filed a chapter 13 bankruptcy you would have to pay a portion of it back.
I AM WONDERING SOMTHING I HAD TO LET A TRUCK GO BACK. JUST COULD NOT AFFORD IT, IF I DONT SELL FOR MUCH AT AUCTION AND I OWE MONEY TO THEM. WHAT CAN THEY DO? IF YOU CANT AFFORD THE TRUCK HOW DO YOU PAY BACK MONEY OWED?
Elias,
The first thing to do is to contact the bank and ask them what you need to do. In most cases, banks have a lot where you can bring your vehicle to turn it in. In many cases, you can turn it in at a dealership. For example, if the car was purchased through Ford Motor Credit, you could turn it in at any Ford or Lincoln-Mercury dealer.
My car was repossessed and right know if in the collection agency, they don’t give any chance to pay in monthlypayments,and they put me in thelegal depsrtment, how can i do, I’m very scared and i dont want this go to the court, somebody can help me,please i need and advise,please answer at my email. Thanks
I lease my car in 2006 and I cant afford it anymore, what will it do to my credit. I will be turning it in no matter what, Janet
Can you refinance your car for a lower rate & payment after paying for a year?
Also, can you trade your car in to get a less expensive car? Thanks.
Donna,
We normally recommend that you wait to refinance your car until you are at least halfway through the loan term. The more payments that you’ve made, the better situation you’re in when it comes to equity in the car (loan to value). The better the loan to value, the lower your interest rate will be when you refinance.
The trade-in is really the same scenario. You can always trade in your car, it just depends on how much the car is worth as a trade-in versus what you owe the bank. If you owe more than the trade-in value, you could be paying for two cars with your next car payment (the negative equity from the first car, plus your new car). If your current car is worth more than the trade-in value, you’re in good shape, since you can use that equity towards a down payment on your new car.
My car was repossed this morning but i dont understand y because i’ve made my payments every month not on time but i’ve made them adn now they arent telling me anything …. dont know what to do ?
ED,
At this point in time, I would suggest that you contact a lawyer.
If I have 2 car loans and 3 cars, one of loans are current and the other is not. The car that is paid in full is only worth like 600 bucks and we only use it for wheelin, but even if we sell it, it wont pay off our debt. If I was to file chapter 7 bankruptcy, would I be able to keep the car that is still in good standing? Even though I have a third car paid in full. Would i have to sell the 3rd car that doesnt have a loan in order to keep my car that is in good standing? I dont know what to do.
if i am behind on my car payment can i trade my car in and get another car with a lower monthly car payment?
I got my car as of april 24,2008 and still have no loan as of october 2008. Dealership messed up. Iwas working as of April 2008 and quit my job on july 10,2008. They were supposed to get me approved as of that first month of purchasing this vechicle, but again dealership messed up, so I had to get my mother as a co-signer because Now I quit my job. I have 4 different contracts with this company and all the numbers are different on the contract. What do u think?
Katie,
Your Yahoo address indicates that you are from Canada and I am only familiar with US bankruptcies. If you are actually a US Citizen, this would be my answer:
We’re not lawyers and we don’t give legal advice. That being said, you can “reaffirm” your debt on the car that is currently in good standing. This means that it is not part of the bankruptcy. If you continue to make your payments on time, the bank will have no reason to repossess it. As for your third car, no one here has ever heard of anyone having to sell a paid-off vehicle in order to settle bankruptcy debt.
My car was repossessed. I paid off the loan and paid all the penalties. I do have it back albeit with some damage. My concern is with my credit. How bad will this be and what can I do to fix it. I was a couple of days late—once in February and once in August, but I paid the late month and the current month immediately.
i wanted to know how much points will my credit go down if I willingly give back my car? my job has sadly taken a turn for the worst and payin for my car is just to much for me to handle. and im in fear of my credit bein shot down to me. also i have 2 cars bein financed. one is bein returned. if i keep the other one and make payments every month. is that goin to cover my reposessed vechile?
My ex-boyfriend had me co-sign for a car, and the dealership noted me down as the owner because of my excellent credit. Now, 4 years later, he has been over 40 days late a total of 8 times. He still owes 5, 400 on the car and isn’t making the monthly payments. I don’t know where he is or where the car is… he’s taken over the payment since day one and 31/2 years ago we broke up. I’m now getting phone calls from the creditors with threats of repossession. What can I do? He refuses to bring me the car because he knows thats the only things that keeps us in some contact. However, I don’t want to ruin my credit anymore than he already has.
Ingrid,
If your car was repossessed, chances are it was more than a couple of days late. You need to request a copy of your credit report to see the history of this loan - it probably includes a paid repossession. What you need to do is to make sure all your bills are paid on time. If you don’t have a credit card, apply for one and either pay off the entire balance every month or keep a low balance (30% of the maximum credit). Other than that, only time will raise your credit score.
Joseph,
It’s hard to say how much your credit score will drop - a voluntary repossession is still a repossession. The credit reporting agencies will treat your vehicle loans as 2 separate transactions and paying on one will not negate the repossession of the other. Over time, however, paying on the other one will eventually bring up your credit score.
JD,
Unfortunately, when you co-sign a car loan, you assume the responsibility for paying back that car loan. If you don’t want your credit score to drop any further, you will need to start making payments on the loan, yourself.
I voluntarily gave my car back in 1993. I was never notified of the sale date. When I heard from the creditor the amount of the car was the same as when the car was given back. I asked the the creditor to provide me with info and sale info. They could not. Later on in that same year I got a notice from another state that my car was found in an alley and still registered to me. What are my options if any? Thanks
JC,
I have a number of questions for you before we can even begin to list your options. First of all, are you really talking about a voluntary repossession that happened 15 years ago? If so, what kind of a car loan was this? Did you get financed through a lending institution, or was this through a “buy here pay here” or “tote the note” dealer? When you received the notice from “another state”, was it from a police department? Finally, what kind of liability are you looking at right now? Was the vehicle stolen? Also, when the creditor notified you of the sale date and the amount the vehicle sold for, how were you notified?
I am very sorry. This happened in 2003. I was financed through a lending institution. Also I was notified from the dept. of revenue/ police dept of that state. They told me that the car was still registered to me and that it was reported stolen. I was like how when I was told that the car was sold. What I am wondering is how can I find out if the car was actually sold in an auction as it was told to me. Also when I asked the company in question to send me information regarding the presumed sale of the vehicle, the could not provide this for me. Yet they claimed that the vehicle was sold in an auction. I was never notified of a sale date. I was just informed that it was sold.
JC
At this point in time I would suggest that you contact your state department of motor vehicles (DMV) as well as the state Attorney General’s office and inform them of the situation. You should also check your credit report to see the status of the loan. That way, you can inform both the DMV and the Attorney General’s office, since something is definitely wrong with this situation - i.e.,if you are still the registered owner of the vehicle, who reported the vehicle as stolen to the authorities?
If i cannot afford to make payments any more and my car is repossed and the bank short sales. I will owe the bank that amount correct. Do banks usually settle for an amount less then this amount or when they hand it to a collector? will I be able to settle for a lesser amount
thanks
can’t afford car tried to surrdurrder it they won’t take it back what right do i have
Mike,
You will owe the bank the balance due on the vehicle plus any repossession and auction fees. At this point in time, either the bank or a collection agency has the account and chances are good that either one of them will take a lesser amount as a settlement on the account.
Linda,
I find it hard to believe that the lender wouldn’t allow you to surrender your vehicle. At this point in time you have two choices: 1) drive the vehicle back to the bank, lock it up and hand them the keys or 2) continue to drive the vehicle until they come and repossess it.
I have a situation where I have a 2008 Dodge Truck. Blue book say it’s worth $19K and I owe $31K. Payments are really high and I can’t afford anymore. In a situation like this where I’m burried in the over $10K would a voluntary repo be ideal?
Johny,
No repo is ideal. A voluntary repossession is the same as an involuntary one on your credit report. If this is the only choice you have, you need to know that it will be at least a year before even a subprime lender will consider you for another car loan.
I owe 21000 dollars on my truck that is only worth 10,000 dollars when i tried to trade it today. They would not allow me to roll the remander amount of money on my new loan. I was wondering if I just let the truck go back how long would it effect my credit and what kind of damage would it do to my credit. Also would I be able to get other loans such as house loan, boat loan, etc… without having high interest rates since i have good credit and can get loans easy. would I have to pay back the amount of money that is still owed on the truck and if I didn’t what could they do to me? I have never done anything like this before and just wanted some answers
Ryan,
If you let the truck go back it will affect your credit immediately as well as all other borrowing (high interest rates). You will be in a bad position for longer than you’d like (the repossession would show up on your credit report for 7 years) especially in today’s volatile credit atmosphere.
I no longer can afford my car, and I am in serious debt already. If I stop paying for it and they reposess it. And i leave the country can they still make me pay for it?
BV,
We are not lawyers and we don’t give legal advice, but if you are already in serious debt, have you thought of consulting a bankruptcy attorney? Once your vehicle has been reposssessed, it will be sold and the proceeds will go to reducing the amount owed on the contract. At that point, the bank can begin collection proceedings on the remaining balance. If you are no longer in the country, that will certainly make it more difficult for the bank to collect the amount owed.
I have a 2007 car that i owe 26000.Im 2 payments late and thinking of voluntary turn in the car. If i go bankrupt, am i gonna owe any money to the agency? Im paying a 2002 truck that i dont have any problems with but will they try taking the truck away if i go bankrupt? i only owe $8000. how will it affect me.
Chykyz,
We are not lawyers and do not give legal advice. That being said, it would be a better idea to include the 2007 car in the bankruptcy rather than doing a voluntary repossession before the bankruptcy. If you include it in the bankruptcy it won’t look like you’re going BK in order to avoid paying the judgement on it. As far as the 2002 truck is concerned, if you reaffirm it in the bankruptcy and make your payments on time they cannot legally take it away from you (reaffirm means that you recognize the debt and are not including it as part of your bankruptcy).
what happens if I bought my truck from the dealership and If Chrysler went bankrupt? Is my truck going to get taken away from me?
What happens if the Maker goes bankrupt and they are the ones that financed my loan? Am I going to loose my truck?
I have a car that was government seized. It is worth approx 10k and I owe around 14. In order to get the car out I have to pay $1200. My question is if I leave it in there since the bank is the leinholder will the government be required to give the car back to the bank? Or if they auction it is it the same as if a bank were to auction the vehicle? Bottom line I can’t afford the car and I have another car is it worth it to pay the $1200 to get it out if it will be a voluntary repo anyway?
Ericka,
The government will not give the car back to the bank. When they auction it off, they could ask as little as $1200.00 for it and you could be responsible to the bank for the entire $14,000.00 that you owe on it. You would be much better off paying the government the $1,200.00 to get the car back and then doing a voluntary repossession. That way, you will only be responsible for the difference between the $14,000 that you owe and what the bank can get for it at auction.
Thank you very much. That is extremely helpful.
I have a 2005 corolla , im thinking of not paying the car because i can’t afford it any more. My questions are. Do i still have to pay the car if they reposses the car? and the car is under my sisters name but I asked her to buy the car for me how would that affect her credit??
Yanira,
If the car gets repossessed, the lender will take it to auction and sell it. At that time, you will be responsible for the deficiency balance (the difference between what you owe on the car and the price it fetches at auction) plus any fees incurred by the lender to repossess it, transport it to auction, and pay the auction fees. You could cut down on the fees by voluntary returning it to the lender, thus avoiding towing costs, etc.
As for the second question, if the loan is in your sister’s name, it would harm her credit in a big way. It would be as if she had a repossession and it will be on her credit report for 7 years. Before you do anything, you should check with your sister and see if she can help you make the payments. You could also avoid repossession by selling the car and coming up with the difference to pay the lender off.
I had my vehicle repoed yesterday , there’s no way I’m going to be able to pay to get it back, I have no choice but to file for bankruptcy so my question is when should i cancel the insurance ,which is expensive also?
George,
Since the vehicle has already been repossessed, you can cancel the insurance at any time.
Hello
I was in a bad car accident last year, and was out of work. I feel behind 2 months on my car payments, and while my car was being fixed at the garage, the repo man took my car. Now, since the car was crashed, they sold my car for auction for only 1000$. A 2004 Honda Accord is not worth 1000$. I still owe 10,000$ on the car which i bought for 14,000$. Is there justice in this. I can pay for a car for the next 4 years that i DONT own. Chase auto really messed my life and credit up. If they took the car after it was fixed and then sold it, that would have been fine. But they took the car crashed , almost totaled. Any suggestions?
Alicia,
Did your insurance adjuster get a chance to look at the vehicle before it was repossessed?
I purchased my car from a bad dealership for 8500 in 2007. I gave them 2500 and a trade in for 2000, so a total of 4500 down. They sold my loan and the new company is now asking for 4400 to not reposess my car and saying after I will still owe them 8500. When I outright refused, they agreedto settle for 4500. I was thinking about trading in this vehicle for another car or voluntarily giving it back and getting a lawyer to help remove this off my credit. It isnt being rported on my credit right now anyway. Which should I do?
Lysel,
It is quite possible that the figures you quoted are correct, depending on the interest rate in your original contract. Much of this would depend on your monthly payment as well as if you’ve made all your payments on time up until this point. Rather than contact a lawyer after you’ve voluntaring returned the vehicle, it would be a better idea for you to contact one before you do this to verify the legitimacy of the debt and to give you advice on what would be in your best interests to do next.
I had my car repossed today, March 29, 2009. They did not leave me a receipt as proof they had repossed the car. When can I drop the car insurance on this car? Do I need a receipt from them? Are they liable for the car now? Thank you.
Bobby,
Since the car is no longer in your possession, you can drop your car insurance. The company that repossessed the vehicle is responsible for any physical damage until the bank takes possession. You are, however, still responsible for any deficiency balance (the difference between what you owe and what the car sells for at auction) as well as any repossession fees, storage fees and auction fees incurred by the bank.
Thank for the quick response. I have another question, when I drop the car off my car insurance what do I tell them? I don’t want a reposession to hurt my insurance rates, I have been with the same car insurance company for 14 years. Do I tell them it was repossesed or can I just tell them something else…. Thank you.
Bobby,
If they really need a story I suppose that you could tell them that you sold the car. In any case, the repossession will appear on your credit report for 7 years and if the insurance company bases their rates on your credit score (as many of them do), they will pull a report the next time you get a car or the policy is up for renewal and the repossession will be there for them to see.
I am thinking about letting my car be taken. I owe 17,000 on it still. If they repo it. How long will it be until they sell it and inform me of what the difference was from what I owed and what they sold it for?
Jason,
That really depends on the lender. It usually takes 30 days or so for the process. If you are planning on letting them take the car, you might want to turn it in, yourself (a voluntary repo). It will still be listed as a repossession on your credit report, but by calling the bank and letting them know your intentions, you might save some of the towing and repo costs that the bank will add to your deficiency balance.
I am going to give my car back to the bank. I lost my job & can not pay for it anymore. I do have a car that is payed for . Can they get that car from me to pay off some of the difference? If I make payments on what is left after the bank sells it can they still get the car that is payed for?
Nancy,
The lender can’t take the car that is paid off - they can only repossess the vehicle that is secured by the loan. To cut down on the deficiency balance (what you owe on the car you are going to give back), I would suggest that you do a voluntary repossession and return the car to the bank, yourself. That way, you could save on any fees related to an involuntary repossession (towing, storage, etc.)Once the lender sells the repossessed vehicle at auction, they will send you the information on the deficiency balance (the difference between what they auctioned the car for and what you owe on it). You should then begin making payments on this amount.
If I voluntarily return car, and don’t pay the deficiency, will they put a lien on my home? Will they sue me? What happens? I am very upside down on the loan, which is the reason I have to give it back, I can’t make the payments and no one will take it for a trade in.
Cindy,
They cannot put a lien on your home unless you put it up as collateral for your car loan (which is highly unlikely). They probably will sue you for the deficiency balance (the difference between the loan balance and what the car fetches for at auction). We are not lawyers, and we don’t give legal advice or speculate on “what ifs”, but if they obtain a judgment against you for the balance owed on the contract, they could garnish your wages at some point in time. My advice to you is to contact a lawyer to see what your options are - such as setting up an affordable payment plan with the lender for the deficiency. In any case, it might not be a bad idea to contact a lawyer before you voluntarily return it just to see what your options are at this point.
I live in California and my car was repossesed last september. The repo man told me to call chrysler the following days for options to get my car back.
The few days after i called chrysler and was unable to get anyone on the phone to disuss any options that might have been available to me. With all of this said i was never notified of when the sale of the vehicle would occur. The only correspondence I received from them was a collection letter from a second party demanding payment for the defeciency balance about 3 months after they took the car back.
Do I have any rights here? Obviously they have marked my credit with a repo but dont they have to notify me or allow me a chance to pay off the balance in full before they sell it at an auction?
Any information you can provide me with here will be appreciated. Thank you.
i had crashed my car and it was totaled, at the time I had no insurance biggest mistake I have ever made. But I don’t want to keep making payments for a car I cant fix and dont have. First question, what would happen if the bank repossess my car as a totaled car? Would I be held liable?
Edward,
We are not lawyers and do not give legal advice. I am not familiar with the California laws regarding repossession, but in most states the lender contacts the borrower before the auction and furnishes the borrower with what it would require to reinstate the loan (amount owed plus storage fees plus repossession fees). At this point in time, I would suggest that you contact a lawyer to see what rights you have.
Stephan,
You are responsible for the loan no matter what condition the car is in. If you stop making payments and the vehicle is declared a total loss (and the bank can’t sell it to recover what is owed on the finance contract), you are still responsible for the remaining balance of the loan. The lender would be within their legal rights to start collection proceedings, sue you for the remaining balance as well as obtain a court order to garnish your wages to pay off the remaining balance on the loan.
Handy site, helpful comments! Thanks!
Okay, I used my car as collateral on a $10,000 refinanced loan around 7 years ago. I paid it down to around $4,000 before having to stop making payments around 6 years ago. The credit union could not find me to reposses…and I was living in the car part of the time. Yep, I hit VERY hard times. Today I see they have stacked on repo fees and mandatory insurance so the loan jumped up to $7,200. Odly, when I disputed the loan with the credit bureaus, the credit union removed/deleted the items on my credit reports. My question is. My car is 12 years old and it’s been almost 7 years since I stopped making payments, so is there any chance of getting the car Title without paying the loan which they wrote off long ago? Is there a statute of limitation? This is my only debt. I am still very broke. Thank you.
I HAVE A FRIEN WHO WANTS TO KNOW IF HE BOUGHT A CAR 2 YEARS AGO AND HE IS BEING FINANCED, BUT HE CAN NO LONGER MAKE HIS MONTHLY PAYMENTS, BUT HE DOES NOT WANT TO RETURN THE VEHICLE, WHAT HAPPENS IF HE DOES NOT PAY THE VEHICLE ANYMORE AND HE STILL KEEPS THE CAR?? CAN HE GO TO JAIL FOR THIS?? OR WILL HE BE SENT TO COLLECTIONS??
Amber,
In order to receive a title, you need to fill out a lost title form to apply for a lost title through your state department of motor vehicles. Once you do this, you should have the title within a couple of weeks. Once you receive it, you can check to see if there is a lienholder listed on the title.
Evet,
The lender will send your friend’s account to collections. They will also send someone out to repossess it. In addition, the lender can also take your friend to court and garnish your friend’s wages to pay off the deficiency balance (what is owed on the car after it is sold at auction).
can i get a car with bad credit or a repo??
James,
Everyone’s situation is different. Bad credit (subprime) lenders look at your income and expenses (ability to pay) as well as how long you’ve been living at your current address and how long you’ve been with your current employer or in the same line of work (stability).
A repossession is a black mark against your credit, especially when it comes to getting a car loan, but it also depends on how long ago the repossession occurred. One more thing to keep in mind is that a large down payment will help out in many situations. If you go to http://www.autocreditexpress.com and visit the “Resources” section, it will help you compute your expenses and explain the minimum requirements for a bad credit car loan.
My husband just went on disability, we have 2 cars we can no longer pay for. we have (had) excellent credit. should i let the cars go back and what is it going to cost me. i do not own a home.
Charlene,
We are not lawyers and we don’t give legal advice. Whether you should or shouldn’t let both cars go back is a decision that you will have to make. Keeping either one will make it easier to finance your next car, while letting both go back will hurt your chances of getting another one for at least a year (in most cases a repossession has to be a year old before even a subprime lender will consider you for a car loan). If you decide to let them go, I would suggest that you do a voluntary repossession in which you bring them back, yourself. This will help you avoid some of the fees associated with an involuntary repossession.
As for the second part of the question, it will cost you the difference between what the lender receives for the cars at auction and what you owe on the finance contracts - plus repossession, storage and auction fees for each one. Bear in mind that a repossession will remain on your credit report for 7 years.
i co-signed for a car for my ex-boyfriend. Even tho he is the owner i hav been making the monthly payments. I cannot afford to any longer, and there is 9000 negative equity rolled into this loan. He has sinced declared bankruptcy. I am totally broke, if i return the car and cannot pay any defiency payments, will they take money out of my meager paycheck, will I have to appear in court? Can I go to jail if I cannot pay? Am i still responsible since he has filed bankruptcy
Felic,
A co-signer is equally responsible for the loan. Since he filed for bankruptcy, he probably included the car loan in it, so this means it is now just your responsibility. Once the lender repossesses the car (I would suggest a voluntary repossession where you return it to save on repossession fees), you will be responsible for the deficiency balance (that also includes auction and storage fees). Although you can’t be sent to jail if you cannot pay, the lender can take you to court and garnish part of your wages to pay off the balance. At this point in time, I would suggest that you consult with a lawyer to see what options you have and what your rights are, since the laws of each state are different.
i co-signed for a car for my son and the car got repossesses. I am filing for bankruptcy. But Me and my son own a house together. Can they take him to court for the house.
Lisa,
If you are asking whether or not the lender can attach your home to pay off the deficiency balance on the car loan, the answer is no, they can’t. They can sue for the balance and obtain a judgement against him and, once that happens, they can garnish his wages, but they still can’t go after the house.
Hello, I bought a Mustang for around 12,000 (5 year loan) in March of 2007 in Arizona. I am now currently living back home in CA. I am 3 months late for my car payment of $375.00 (-$1,126). I have explained to Honda Finance that I was recently laid off and was unable to make the payments they explained to me in an apathetic manner that they were unable to work with me in my loan and could not lower my payments. I have been shopping around for a credit union thinking they would be able to help out, however my credit is just pathetic they can’t help me out either. I am moving to NY in just a couple weeks and was just thinking I should have the car repossessed. Will I have to pay the outstanding balance for the car? And if so can you recommend a credit union that might be of any help? Also if I do have the car repossessed with I need to pay the negative balance of (-$1,126)? I completely understand that you are not a lawyer, and appreciate the fact that you are taking your time to help my and the other 80+ people with their individual struggles. - Asha
Asha,
If your car is repossessed, you will be required to pay the lender the deficiency balance (the difference between the loan balance and what the lender receives for the vehicle at auction) plus any repossession, storage and auction fees.
To answer your next question, I don’t know of any credit unions in New York (we are based in Michigan).
To answer your third question, the negative balance is not part of the equation in a repossession - the amount you will owe the lender is based on the value of your vehicle at auction versus the balance owed on the loan contract (which could be much higher than just the negative balance).
Finally, if you really do plan on having the vehicle repossessed, I would suggest that you do a voluntary repossession. This means that you contact the lender and ask them where you can turn in the car - thus avoiding repossession fees (at this point, every little bit helps).
My husband and I bought Four Wheelers with a secured loan in 2007. Last summer, we were in a lot of CC debt, so we sold the Four Wheelers to pay off other outstanding debt, without notifying the bank. We still have that debt, roughly $6,000. Basically, if I quick paying the monthly payments, what can the bank do since there is nothing to “reposes.” He recently left me, and left me with a lot of debt, I am already having to give up our house and my vehicle. Thanks in advance!
Whitney,
Although the bank cannot repossess the four wheelers, both you and your husband are responsible for the $6,000 debt. If you stop making payments, the bank will send the account to collections and can even take you court, obtain a judgement, and garnish your wages to pay off the debt. We are not lawyers and do not give legal advice, but you may want to consult with a bankruptcy attorney to see what your options are at this time.
I live in Florida- I am doing a voluntary repo in two of my cars because I lost my job. My husband still works & pays all the other bills. If I have two older cars that are paid off Can they try to get them for payment? Someone told me they can get one but they have to leave one for us? Is that true?
Nancy,
The lender cannot take either of the cars that are paid off. They can take you to court (I am assuming you were the only person on the two contracts for the cars that are being repossessed) and get a judgment against you and attach a portion of any earnings that you receive (including any tax refunds you are due) to pay off the deficiency balance on both loans.
But to restate the original answer, the lender cannot take either car that is paid off.
I am currently 2 1/2 yrs into a 5 yr lease & my payments are current, but wrk is slowing dwn & finances are very tight which is making it difficult to keep up with the payments on my car lease. I’ve tried to trade my car in for a cheaper one, but no one was able to do much because I’m so upside dwn. My remaining balance on the lease is $16,300, the buyout is $21,000, & the car is currently worth only about $11,000-$12,000. In your opinion,what are my best options?
I have a 1999 Ford Taurus. I bought it “as is” with 600 down and have been making payments on the car every two weeks (85.00). The day after I bought the car it broke down. It had to get taken back to look at. They fixed it for me as the mechanic that had worked on it was fired that day for 8 out of 10 of the vehicles being sold had broke down. They said it was just the spark plugs. The vehicle has been smoking ever since then. All the fluids have been clouding up and I was maybe able to drive it a total of 2 miles 6 days a week to work and back before it broke down after 4 months. Now I am behind payments as I lost my job and I don’t find paying on a vehicle I was never truly able to use even an option especially with being a single mom of 3. How long until they reposes? Will i owe money on the car when they do so? Can they really “gashnish” my wages? Even though I have no wages at this time?
Mario,
Keep in mind that we are not lawyers and do not give legal advice. That being said, your negative equity is the real problem at this time. You might try going to a Chrysler dealer that is closing before the second week in June to see if they can put you in a car and lower your payment, but chances are it won’t change much, since financing 10K in negative equity is going to cost at least 225 per month on top of the new payment.
The other option that you have is to go online to smallercarpayments.com and refinance the buyout for 72 plus months. You could also try this through a credit union. You will be upside down for most of the loan, but you may be able to lower your monthly payment to where it is affordable while avoiding a repossession and the hit to your credit score.
Allison,
The lender can, in most states, legally repossess the vehicle the day after your payment is due - it really depends on the policies of the lender, in most cases. When the vehicle is repossessed, you will owe the balance of your loan, plus repossession and storage fees, minus the amount the vehicle sells for at auction. If the lender takes you to court and obtains a garnishment order for the amount owed, it can be taken from your wages - but if you are unemployed (unemployment compensation cannot be garnished), there are no wages to garnish.
I have a 2004 vehicle which I refinanced once and still owe on - however, when the refinance was processed a lien was not put on the title. The new finance company contacted me earlier this year demanding I send them the title, which I did not have. After many calls where I explained to different people that I never received the title, they sent me paperwork to have notarized to give them the ability to place a lien on the title. My question is if I have the title to the vehicle, which I do now, as I requested the title for myself, it has no lien, what kind of deal can I re-negotiate? Would the company do that? I have tried to refinance again to lower my rate, but they said they didn’t do that. I realize I would be responsible for the balance even though they couldn’t repo the car. Would they lower my interest rate rather than getting nothing? In PA I don’t believe wages can be garnished to civil suits.
Thanks,
James,
Let me first state that this is a rather unique situation that you find yourself in. I should also state that we are not lawyers and do not presume to give legal advice. That being said, you are correct when you state that you are responsible for the balance and, at this point in time, the lender could not legally repossess the car since there is no lien on it. If you don’t sign the paperwork, they would probably have to go to court in order to have a lien placed on the vehicle.
Using the current lien situation on the vehicle as leverage to negotiate a lower rate on the vehicle may or may not work as you would 1) be acknowledging to the lender that you now have the title in your possession and 2) might also force them to take you to court to have the lien placed on the vehicle. So you see, it’s not a case of “lower my interest rate rather than getting nothing” as they may be able to get a lien placement from the court based on the contract that you signed for the loan.
You might want to try and shop around to different lenders (such as a credit union) to get a lower rate before approaching your current lender for a modification to your current contract. Beyond that, a lawyer licensed in PA could answer your garnishment question and could further clarify your current rights (and the lender’s rights) regarding your title situation.
hi! please help me to clear up my mind. I’m a student and i have a car to be paid monthly. i got laid off in my previous job 3 months ago. i havent paid my car 3 months now and a guy called me that theyre taking my car tomorrow. i dont mind about them taking it, because i cant pay the car anyway and im still in school. but the thing that im worried about is my account in the bank. i dont know if im still paying any amount to the bank after taking my car. do you have any idea to whats gonna happen?
thanks!
tlane
tlane,
If I am interpreting your question correctly, you’re stating that your car loan is through the same bank where your other accounts are (such as checking and savings). If this is the case, it really depends on the wording of the agreement you signed when you originally set up these accounts. In most cases, these accounts are set up so that if you owe the bank money on one account (such as your car loan), the bank has the right to recover this amount from any of your other accounts.
Keep in mind, however, that the amount you end up owing the bank will only be determined after the car is sold at auction. The difference between what you owe on the loan contract and the amount recovered (after fees) from the sale of the car at auction is called the “deficiency balance.” Once this amount has been determined, if your bank account was set up as I described above, the bank has the right to access funds from your other accounts to cover the deficiency that you owe them.
I live in TX, I surrendered a truck that I can no longer pay for, the same bank where the truck was financed said they are going to put the remaining balance on the end of my house loan without my consent,which I have 2yrs left to pay on. I did not put my house dn. as collateral when I financed this truck, can they legally do this?
Tina,
Although we have never heard of this happening, this doesn’t mean that it’s illegal. The fact is, we are not lawyers and do not give legal advice, although, at least to us, it doesn’t seem like the bank would be doing this unless it thinks it legally can do it. That being said, it sounds like it would be in your best interest to obtain a copy of your loan contract for the truck, your house and whatever else you signed when you opened your account with the bank and take it all to a lawyer and find out for yourself.
I financed my 2001 VW in 2007. My monthy payment was originally about $400, but went up to $555 last year when my car broke down and the finance company paid for it to be fixed for $2000. I have been struggling with payments ever since.I have been steady with my monthly payments but now I dont have alot of cash saved up and i need to take an emergency trip out of the country to see family. I will miss two car payments while i am gone and would like to just get rid of the car because this trip is important and I need all extra cash to pay for this. I cannot afford this car anymore. what options do I have if I dont make the payments while i travel? Can I just keep the car in my locked garage until I can trade it in when I come back? there is $4500 left to pay on the car and its not in perfect condition, so the value is actually alot lower than the payoff. Is it a good idea to trade it in? I wont be able to sell if for much, even after I pay off the rest. Its really put me in a bad situation because $555 is alot these days. I dont know what to do, but i travel in 4 weeks and cant afford this car anymore. I havent even been driving it because I cant pass smog to get my registration sticker..which i already paid $200 for. Help?!!
Roslyn,
Repossession or late payments will lower your credit score and will make it very difficult for you to trade in your vehicle after your return from your trip. Even if your car is not repossessed while you are away (locking it in your garage will prevent a repossession since they cannot break into your home to take the car), your credit report will show you at least 30 days delinquent on the loan and no lender will consider rolling negative equity into a new loan if you are currently delinquent on a loan.
Here is what you might want to consider doing: Since your current car is not drivable, why not get a new car before you leave on your trip? There are a number of new (affordable) vehicles that currently have substantial rebates that would cover much of the negative equity in your VW (both Kia and Chrysler come to mind). If you do this, your next car payment won’t be due for 30 days from the date you sign the loan agreement, giving you a little bit of breathing space while you are on vacation.
I bought a 2006 dodge truck several months ago and financed it thru my bank..several months down the road I switched insurance companies and was told that it was not insurable because it had a “salvaged title” on it, which neither I nor my bank noticed on the title due to it being in itty bitty tiny print…because of this, I am not able to find a suitable insurance company who will insure this vehicle and cannot sell the truck without bringing it to a potential buyers attention, I can no longer afford this vehicle due to my husbands disability and having only one income….any suggestions?????
Tina,
Whenever you purchase a used vehicle,you should read the title very carefully before you sign it. You might want to check with a lawyer to see if you have any recourse with the seller, but with the title clearly marked “salvage”, i doubt if you have any. Since a repossession would, in most cases, prevent you from financing another vehicle for at least a year, my first suggestion would be to contact your bank and explain your dircumstances. They might be able to arrange a loan modification that would enable you to keep the truck. You should also discuss your insurance issues with them to see if you can come to any kind of resolution (you should be able to get liability coverage on your vehicle but the bank is probably insisting on full coverage).
My car is being held by shop because I couldn’t pay the repair bill. They told me that I could make payments but now they want the rest of the balance by the end of the month. They said they might take the car if I don’t pay it. My question is can they take my car if I have a lien holder? They asked me to try and sell the car to pay them and I told them that I was still paying on a loan for the car. My husband and I have fallen behind on everything and probably won’t be able to pay it. What could happen here? We are also about a month and a half behind on the car payments. What happens if both the shop and the bank want to take the car? I would think that the shop couldn’t keep it because of the lien on it.
Also I wanted to ask… We had to drop our car insurance because 1. we can’t afford it right now and 2. we don’t even have the car to drive right now cause it is still at the shop. But don’t we have to keep car insurance on the car at all times because of the lien? I know that since we have a car loan that we have to have “full coverage” but happens if we don’t have “any insurance” and the car is just sitting and not being drove. If the bank is notified that we no longer have insurance on the car what can they do? Can they take the car for that also?
Kristy,
We are not lawyers and we do not give legal advice, but here is our take on what is going on. You have a number of questions and we will attempt to answer them.
The shop can hold your car until you pay the balance that you owe them. We don’t know what state you live in, but in the State of Michigan, the Garage Keeper Lien enables a licensed repair facility to obtain a lien and, once the Certificate of Foreclosure is issued by the Secretary of State, the garage keeper must send a certified letter to all lien holders (you and the bank) giving an itemized account of all charges (including storage fees), payments and the outstanding balance owed.
Here is the link to the State of Michigan site:
http://www.michigan.gov/sos/0,1607,7-127-49534_50301-27228–,00.html
In any case, we are assuming that most states have laws similar to this, but check with yours to be sure. If your state has a similar law and the shop has the lien, it would be up to the bank if they wanted to pay the amount owed and repossess the car then have it auctioned and bill you for the difference, or let the shop sell the car and then bill you for the entire balance owed on the finance contract (unless, of course, you pay the balance first).
You were correct when you stated that you have to keep full coverage insurance on the car. If you have dropped your car insurance, the bank can (and probably will) obtain coverage for you and add it to the loan balance. This cost of insurance (plus interest) is usually much more expensive than regular insurance and could either increase your monthly payment or extend the term of the loan to cover the difference (depending on how your finance contract is worded).
At this point in time, you have a decision to make. If you are currently a month and a half behind on your car payments, have no car insurance and owe the repair shop, you will want to inform the bank of your circumstances and see what options you have with them (if your car payment is about to increase due to insurance it could very well make things even more difficult and you might want to consider a voluntary repossession, even though it will adversely affect your credit).
i live in mississippi. if i let the bank repo my truck or if i voluntary repo it. i know the remaining balance after they auction it is left for me to pay if they auction for less than i owe. my question can they garnish my wages for the remaining balance?
Josh,
Once the truck has been auctioned off and the lender knows the amount of the deficiency balance (what you owe), they can go to court and request a writ of garnishment (which will be granted). Although we are not lawyers, we might suggest that you contact the bank prior to the voluntary repossession (thus avoiding most repossession fees) to let them know what you are doing. In the process, you could ask them whether or not you could set up a payment arrangement for the deficiency balance. In this way you could possibly avoid a garnishment as well as the court fees associated with it.
i finance a car thur credit acceptance in dec oo 05,in mar of 07 i fell behind in my payments,they tried to reposses my car in 07 and o8 but couldnt find it,a law firm contacted me in feb of this year offering a settlement i accepted and have paid it in full,my question is will they release my title and when,the title i have never had the loan company ’s name on it just mine.
I had found out yesterday that they put a lien on my car. i have been behind on payments for quite a few months because of a job loss and a car accident. I am wondering, am i able to sell the car with a lien on it, and if so, how would i go about doing that.
i did forget to mention that im in the state of ohio.
Melissa,
I can’t remember an instance where there is more than one title for a vehicle. If you have a title in your possession, I have to assume that it is the only title for your vehicle. If there is no secured party on your title (just you), then there is no release required.
Can I go to jail for not paying my car payment and ” hiding it ” until I have the money to pay for it? I was layed off and I dont have a job yet. Unemployment sucks!!!
I have been paying weekly on a second chance type auto loan where the car lot is the finance company. Kind of like a buy here pay here. Sticker price of 9k. I cannot afford the sales tax. or quite frankly the payment.
After almost a year i havent payed sales tax to get plates and now the fee will be over 1000. Have not lic titled this vehicle.
My question is this : Will i still owe the 1000 missouri sales tax ?
Would this have to be satisfied before titling a vehicle ever again in missouri?
to clarify above….i am returning the vehicle unpaid.
Matthew,
We are not lawyers and do not give legal advice. That being said, you cannot go to jail for not paying your car payment. However, we’re not so sure about the “hiding it” part and you may want to consult with legal aid (a free lawyer) regarding what you could face by avoiding repossession in your state.
David,
We were really hesitant to touch this question since 1) we are not lawyers and 2) we are not familiar with the business practices in Missouri.
In Michigan, where we have businesses, it is up to the dealer to pay the state sales tax and process the title as well as buy the license plates (using funds collected from the customer).
A big question in your situation is, “was the vehicle ever titled in your name?” If not, who is the legal title holder?
Our suggestion is to contact the Missouri Department of Revenue (or the Department of Motor Vehicles) or go to the web site to find out what the correct procedure is in that state. Once you know what it is, you may want to consider contacting a lawyer (or free legal aid society) to find out what your legal options are at this point and whether or not you owe any taxes or fees.
Tyler,
You can only sell a car with a lien on it if the sale results in the lien being paid off. When this happens, you take the money to the lender, pay off the car and the lender then issues a letter stating that the vehicle was paid off. Without proof of the payoff, the state department of motor vehicles will not issue a new title in the new owner’s name.
I live in Florida and my hours have been cut on my job…the buyout for my car is $22,000 and I am thinking of voluntary repo….I understand that they will auction off the vehicle then come after me for the rest, if I do not set up a payment plan can they garnish my wages? My sister had the same problem and said that the garnishment would not go through in Florida….also if they order a judgement what does this entail?
Dana,
We are not lawyers, nor do we give legal advice. We are also located in Michigan and are unfamiliar with Florida laws.
That being said, if you were a resident of Michigan and did not set up a payment plan to pay the deficiency balance once the vehicle had been auctioned, the lender could obtain a judgment against you for the balance and, with the judgment, could then obtain a garnishment order against you.
At this point in time, we would suggest that you contact a lawyer in Florida to see what your rights and responsibilities are and to clarify what the lender’s rights are in this particular situation.
Another question regarding my situation , if I may…
As earlier stated my $9k car was acquired through a fairly legitimate “buy here pay here” lot…in fact it is a new Honda dealer that does buy here pay here used cars. The used department actually has a legit name for their finance corp. So I guess technically the car is through a “finance company” though there is not a bank involved in any way. The new car lot gets a trade in that is still a nice car and meets their criteria for second chance…and they do a buy here pay on it through their “finance corp”….(which is the dealer itself)
My question is this…Does this sound like a situation where they would auction and garnish ? OR resell the car on their lot?
I had spoken to them of the possibility of repo and they were vague and said they would have to attempt to recoup their money.
Im just confused because all research i find is based on a bank loan which this is not. Sure a bank has a right to sue for their money . But does this place? Or more appropriately ; Would that be typical ?
thank you
David,
In order to do this properly, the dealership should repossess the vehicle, take it to auction and then bill you for the deficiency balance, because by reselling the vehicle on the lot the dealer would have no way of determining how much was owed on the contract.
While we are not lawyers, it certainly appears that the dealer would have the right to sue for recovery, since you undoubtedly signed some type of loan contract when you purchased the vehicle. This would mean that if you don’t pay the lender (in this case the dealer) for the deficiency balance, the dealer could go to court, obtain a judgment against you and garnish your wages to satisfy the judgment.
Hi, I had a repo back in 05 and since they auctioned it off I still owe around $6,000 on it. My question is if I don’t pay this can I go to jail? I live in TN.
Amber,
We are not lawyers and we don’t give legal advice. We are also unfamiliar with the laws in Tennessee.
That being said, the lender can go to court to seek a judgment against you for the $6,000 deficiency balance. Once they receive this judgment, they can obtain a court order of garnishment and attach a portion of your paycheck. However, we have never heard of anyone going to jail for failure to pay a deficiency balance on a repossessed car.
hi i am in michigan and recently did a vouluntary repo and have a deficency ballence of 12800 owed to chrysler financial that i have atempted to make payment arangements to pay monthly. i own 4 cars outright can the company put a lein on them and can they reach into my bank account to take money the car that was repo was in my name bank account is in mine and my wifes what can they do should i put everything in her name
Ken,
We are not lawyers and do not give legal advice. That being said, Chrysler Financial cannot place a lien on any of your four cars and it cannot remove any funds from your bank account.
On the other hand, it can request an order of garnishment from the court and attach a portion of your wages to satisfy the deficiency balance and it can continue to do so until the balance is paid in full.
Hi,
I was wondering if you could tell me what the process is for voluntarily turning over my car. I havent had a job in over a year and a half, and I have fallen behind in my payments by two months. I still make my payments every month, but they are behind. For example, I just made June’s payment a couple of weeks ago. This is the trend that I have been going with for about 5 months now. Do I need to call the bank and see if they will work with me to get me “current” on my payments, and just add the 2 months that I am behind onto the end of my loan, or should I just ask them what I need to do to turn in my car. I just can’t afford it anymore. Also, I go to school full time and receive military GI benefits. My benefits are going to run out in about 4 months, and that is how I am currently paying for my car, so once those benefits run out, I will no longer be able to make the payments at all…
Thanks!
Krystal,
We are not lawyers and do not give legal advice. But with that being said, it is always a good idea to keep in contact with the lender when you fall behind in payments. You should call them as soon as possible and seen if they can work with you to get current. You might also want to ask them about their procedure for a voluntary repossession (as this can differ with each lender), as it seems that in four months from now you will not have much of an alternative - unless they can help you with a refinance which, depending on how long you’ve had the loan, could significantly lower your payment and possibly let you keep your vehicle.
hi my dad can no longer pay for his truck payments. we have called the bank several times to try to resolve the problem but all they say is that they are going to repossessed the truck and threatened us saying that they are going to take the house away from us.. can they do that even though we are still paying for it? My dad took out another car with much lower payments before we called them about coming to pick up the truck can they do anything to the new vehicle? like make my made surrender that car also? please give me your opinion..thank you
Aracely,
You have a few questions and I will attempt to answer them all. First let me begin by saying that we are not lawyers and we don’t give legal advice. That being said, I don’t understand how the bank can threaten to take your house if you don’t make your car payments. Normally a car loan is secured only by the car and by nothing else. I would suggest that you contact a lawyer regarding this issue, since threatening to take your home is a serious issue.
As far as the second issue is concerned – the other car loan you took out with a much lower payment – that was actually a very smart move on your part. Since it is a separate loan, the bank cannot take it away from you since I am assuming you are making the payments on time and to another lender.
My final suggestion is that, once you get the whole house thing straightened out with the help of a lawyer, you then call the bank and tell them you are going to do a voluntary repossession of the truck (the first loan with the high payment) and ask them where you should return it. That way, you can avoid some of the fees associated with repossession.
Hi Steve thanks for your advise but today they came and took our truck. We are going to look for a lawyer now but i just wanted to say thank you…
My car was repossessed 5 days ago. I called the finance company and was told that I had 10 days to pay it up current and they would release it and I could get it from the lot after I paid their fees. I paid the finance company today. I called the repo lot and asked how much i owed them. they gave me the amount and told me the car was in phoenix az (I live in Mesa az) and they would give me the address when the paperwork was final. They told me to call back in 20 min and they should have everything done. I called back and was told I was misinformed, the car was shipped to new mexico for auction. (Right after I paid the finance company no less) I was told I had to go to new mexico if I wanted the car back. The finance company told me they ALWAYS ship cars for auction between 24 and 72 hours of retrieval. But it took them 5 days to ship mine. Do I have any recourse here? Any options? Because going to new mexico isnt possible for me, and I can’t afford to pay for a car I don’t even have.
Lynn,
It really depends upon how your finance contract is worded. You might want to look over the contract and then take it to a lawyer to see if you have any recourse at this time.