After your vehicle is repossessed by the lender, they can put it up for sale, but, you have a time period to redeem it, paying the amount in arrears, plus collection costs.
Upon repossession, you have the right to recover any personal items in the vehicle.
The lender can sell on the bank lot, or at auction, and then sue you for the remainder of the loan and costs, not collected at sale. The repossession will go on your credit rating (for 7 years).
Time periods for actions in a repossession vary by jurisdiction, and, as I am not a lawyer, only a repossession agent in the past, you should consult an attorney or your state Department of Motor Vehicles by phone or visit their website!
It will be auctioned off and the bank will want to collect the difference of what it sold for and what your loan was.
I took a loan from my bank to buy my first car.
When I went and got a car loan, it took less than an hour.
Yes. all of it should go toward repaying the loan. That is why they reposessed it...because of the delinquent loan.
Yes - if the car loan was with the dealer, the dealer can sue the debtor for the balance of the car loan after the car is sold to someone else.
Yes. Usually the loan holder will be held responsible for any deficit and perhaps fees that are incurred when the car is sold.
Most car loan terms allow the loans to be paid off early without penalty. This is what would happen if you sold the car before the end of the loan, for example. It is possible that the loan was written to include a penalty, however.
No. I recently took a car loan for my son because his credit is bad. The loan is in my name, the title is in his name only. He is listed on the loan as the 'holder of colateral'.