Personal Finance
Money Management

Do you pay what is left on the loan or what the lienholder sells it for on a voluntary repossession of a car?


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Wiki User
2015-07-15 18:40:13
2015-07-15 18:40:13

On ANY repo, you pay the balance due AFTER the car is sold. Payoff = 5K, car sells for 2k, fees = 1K, you owe 4K.


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You can always make an offer, but its up to the lender whether its accepted.

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Well first off, it's not like he could get a refund. If he is simply going to let it get repossessed, he can have someone else drop it off & he can send the lienholder a letter stating he is voluntarily letting them repossess the vehicle, along with location of where it was left. Voluntary repossessions avoid additional charges, towing, repossession fees,etc.

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The bank's repossession of their house left the family with no place to live.

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Example sentence - We all contributed in the voluntary clean up efforts after the tornado left a path of destruction through our town.

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