Do you have to pay the difference on a repossession car loan?

User Avatar


Lvl 1
2005-06-28 15:22:34

Best Answer

Not sure of your question. Do you mean do you still owe after the car is repossessed? Or do you mean do you have to pay off a loan to buy a repossessed vehicle? It depends on the state you are in, contact the lender.

User Avatar

Wiki User

2005-06-28 15:22:34
This answer is:
User Avatar
Study guides


25 cards

What is forfeiture

Which of these is the best description of delinquency

Which term is defined as property that is pledged as security on a loan

This is Paula's monthly budget What percent of her expenses is spent on insurance

See all cards
6 Reviews

Add your answer:

Earn +20 pts
Q: Do you have to pay the difference on a repossession car loan?
Write your answer...
Still have questions?
magnify glass
Related questions

Do you have to payoff a car repossession?

Yes, you owe the difference of the amount of the loan and what the vehicle was sold for plus any costs of the repossession. You are expected to pay that amount.

How do you get out of a car loan that you don't want anymore?

Pay it off, voluntary repossession, sell the car and pay it off.

You returned a car you purchased because you could not pay for it?

That is called voluntary repossession. You will be required to pay the difference in what the lender sells the vehicle for and the balance on the note after that amount is applied to the loan. You did avoid repossession fees by voluntarily turning the car in. Your credit will also show this repossession for 7 years.

What can be done to you if you have a car repossession?

Pay the bill and fees to get your car back. If you can't afford it, your bank will auction the car and you will pay the difference between what they sold it for and your loan. Your credit is also ruined, it will get better in 7 years.

Can you still owe money after your car is repossessed?

Yes, your car will be sold and if the price they sell it for is less than the balance left on the loan, plus the repossession fees, you will be responsible for that difference and will have to pay it.

How do you stop reduce wage garnishment had a car repossessed which was resolded told that i am responsible for the difference what is my legal rights?

Of course you are responsisble for the difference in what the car sold for and the balance on the loan agreement you signed. You are also responsible for the repossession fees. You defaulted on the loan and therfore must pay the difference, and that is your legal obligation. Not one thing you can do but pay up.

Do you still have to pay the difference in the Loan?

Yes, you are legally bound to pay the difference is what the lender sells the car for and the balance on the loan.

In a repossession do you have to pay off the entire car right then or just keep making your loan payments monthly for the duration of the loan?

It would depend on the contract you signed when you purchased the car.

How can you stop a vehicle repossession?

Pay off the loan.

Can you trade in a loan car?

Yes. You must pay off the loan with the proceeds, and pay the difference if the proceeds are less than the loan.

How can you get out of a car loan without a repossession?

Sell it for what you owe if it is possible. Pay off the loan, get the title and sign it over to the new buyer. If you cannot get what you owe, then get as much as you can. Get a personal loan from the bank to pay of the remaining balance. The personal loan is better than the amount you owe on the car.

What happens Repo car and can't pay the there lowest settlement price?

They will sell the car and you will be responsible for the difference in what the car sells for and what the balance on the loan is. You will also be responsible for any fees associated with the repossession. Also, your credit will be ruined for 7 years.

People also asked