answersLogoWhite

Top Answer
User Avatar
Wiki User
Answered 2008-05-07 14:01:31

No, No, No! Repossession should be your last resort. First off, your credit will be ruined for 7 years. Repossession is a serious act, and should not be done without considering all other options. When you finance or lease a vehicle, your creditor holds important rights on the vehicle until you've made the last loan payment or fully paid off your lease obligation. These rights are established by the signed contract and by state law. If your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car. Talking with Your Creditor

It is easier to try to prevent a vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you'll be late with a payment. Many creditors will work with you if they believe you'll be able to pay soon, even if slightly late. Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later. Still, your creditor may refuse to accept late payments or make other changes in your contract and may demand that you return the car. By voluntarily agreeing to a repossession, you may reduce your creditor's expenses, which you would be responsible for paying. Remember that even if you return the car voluntarily, you're responsible for paying any deficiency on your credit or lease contract, and your creditor still may report the late payments and/or repossession on your credit report. Seizing the Car

In many states, your creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a "default." In most states, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. In some states, creditors are allowed on your property to seize your car without letting you know in advance. But creditors aren't usually allowed to "breach the peace" in connection with repossession. In some states, removing your car from a closed garage without your permission may constitute a breach of the peace. Creditors who breach the peace in seizing your car may have to pay you if they harm you or your property. A creditor usually can't keep or sell any personal property found inside. State laws also may require your creditor to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor can't account for articles left in your car, talk to an attorney about whether your state offers a right to compensation. Selling the Car

Once your creditor has repossessed your car, they may decide to sell it in either a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if a creditor chooses to sell the car at public auction, state law may require that the creditor tells you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold. In either of these circumstances, you may be entitled to buy back the vehicle by paying the full amount you owe, plus any expenses connected with its repossession (such as storage and preparation for sale). In some states, the law allows you to reinstate your contract by paying the amount you owe, as well as repossession and related expenses (such as attorney fees). If you reclaim your car, you must make your payments on time and meet the terms of your reinstated or renegotiated contract to avoid another repossession. The creditor must sell a repossessed car in a "commercially reasonable manner" - according to standard custom in a particular business or an established market. The sale price might not be the highest possible price - or even what you may consider a good price. But a sale price far below fair market value may indicate that the sale was not commercially reasonable. Paying the Deficiency

A deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $2,500 on the car and your creditor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing. In most states, a creditor who has followed the proper procedures for repossession and sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract. Depending on your state's law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only opportunity to present any legal defense. If your creditor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.

001
🙏
0
🤨
0
😮
0
😂
0
User Avatar

Your Answer

Still Have Questions?

Related Questions

How do you find out where your repossed car is?

you should probably call your bank. or whoever loaned you the money for the car. they should know where it is


Who is liable if parts are sold from a repossed car?

The person or company that repossed it.


Your car was repossessed how can you get your car back?

If your was repossed you need to call the car company and pay your car


How do you find out who repossed your car?

The lender who holds the note on your car, is the one that repossessed your car.


How do get your repossed car back in Arizona?

Pay what you owe.


If your car gets repossed can you get your possessions that you had inside?

yes


Can my car get repossed from a private parking lot?

Yes, it can.


Can a military members car be repossed?

Anyone's car can be "repossessed" if they don't make their car payment.....


What happens if I can't payoff my car by the maturity date?

get repossed


How much can a repossed vechicle be resold for?

whatever the worth is of the car or more


Can you recover the wheels and tires from your car when it is repossed?

Nope. Nothing bolted or wired. They are now part of the car. Sorry.


Can a car be repossed after payments have been made?

Yes, if other terms of the contract are breached, such as having no car insurance.


Is there a time of the day your car cant be repossessed?

No u can get ur car repossed any day and any time.


Can your car be repossed if it is under a car tarp?

Yes, a car can reposed no matter where it is, unless it is in a garage. IE car park, under a tarp, etc.


Can Minnesota garnish wages for a repossed car?

Yes, and they will. The can garnish up to 25% of your wages.


How much willit cost to get back a repossed car in Tennessee?

You need to be asking the lender this question. They can tell you exactly what to do to get your car back.


Can your car be repossed before your car payment is due?

No, until you have missed a scheduled payment (at the very least), the lender has no right to the property.


What happens when your car is repossed?

The company physically takes possession of the car. They sell the car, and apply the sale price to the outstanding loan. You are then responsible for the remaining balance.


Can your car be repossed by the car dealership if i was never approved for financing?

You were never approved for financing to buy the car thus you do not own the car and the dealer has the right to his property....so yes they can


What happens if I Default on a business car loan?

the car will most likely be repossed and a court order issued against you for what is owing plus costs


Can you get your property from the car if it has been repossessed without paying a fee?

Can I get my personal property from the car if it has already been repossed without paying a fee?


What happens if you hide a car from being repossed?

That is what we call theft. And then you will be sued, your wages garnished and your credit destroyed.


Can you get your car back after it has been repossed?

yes you would have to pay all the back payments and probably a fee.


What do you do car was repossed dony have money to pay?

Sorry, but you will lose the car. Repossession is they way creditors guard themselves against losing money on a loan.


What happens when your car gets repossed in the state of Florida?

just like any where else - you have to walk or ride the bus


Still have questions?