Auto Loans and Financing

Can the difference in money owed and value be claimed from you after having a car voluntarily repossessed?


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Wiki User
2015-07-15 21:29:13
2015-07-15 21:29:13

In MOST cases, YES.

PS. Its not the "value claimed", its the diiference between what you owe and what the lender sells it for.


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Instead of having it forcibly repossessed, you call your finance company and tell them you're voluntarily having it repossessed. They may send a tow service to collect it, or they may ask you to take it to the repossessor. It'll be repossessed, auctioned off, and the amount they get from the auction will be deducted from the amount you owe. The finance company may offer a settlement at that point for an amount less than what you owe on that vehicle - that's up to the finance company.

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No, a car can not be repossessed due to having no registration. A car can be repossessed for non payment. The police can have a car towed to an impound lot if there is no registration.

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No, what will happen is this: the finance company will pay off the mechanics lien (usually) and tack that on your loan balance, it would be considered a repo fee.

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You are not giving it back to the bank, you are having your car voluntarily repossessed. It ruins your credit for 7 years. Which may sound like a bad thing, but in reality will keep you from buying more car than you can afford for the next 7 years, which is a good thing. Remember if you do this, you will still be responsible for the difference in what the bank sells the car for, and the balance on the loan.

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Not for simply having your licence suspended. Now, if you lose your job as a result of it, and are unable to make your car payments, then it can be repossessed for nonpayment.

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