Do you have to pay for a car if it gets repossesed?

Answer 1

Yes. The borrower is responsible for the entire loan amount. The car is considered collateral for the loan. This does not imply that the loan value cannot exceed the collateral value. In fact this happens on almost every car loan, especially with new cars. The lender can repossess the car and sell it. They are required to apply the proceeds from the sale to the loan principal, but any remaining balance is the borrower's responsibility.

Answer 2

depends on your state laws and your loan agreement. In my state you are responsible for what ever you still owe on the car and any fee I charge. If your car is sold that amount will be deducted from what you owe. In other words, I repoed a car and the guy owed $2000, I bought it for $600 plus my fee. He still owes the bank. $1400

Answer 3

In my experiance. The dealers repo the car, a few weeks go by they auction it off. Then charge you for any repairs and cleaning costs plus the amount they didnt make back while auctioning your car. If your lucky you can make a deal and get it returned but its very unlikley.

Answer 4

Yes, if a leinholder reposessed a vehicle from a person that owes a debt. then that vehicle is taken to an auction and the person it was reposessed from must pay difference. If the amount owed is $12000 and the leinholder sells it at an auction for $8000 the previous owner must pay the $4000 difference and any expenses involved in the process.

Answer 5

Well, that all depends on who is taking the car and why. If the bank that financed the car has repossessed it, then maybe...maybe not: It all depends on how much the sale of the item brings. The proceeds will not only have to be enough to cover the loan, but the costs incurred to recover, store, and sell the vehicle. Odds are, that given the rate at which cars depreciate; no. I am unsure whether the lien holder can then go after a deficiency judgment for the amount still owed, but probably (depends on laws in your state probably). As to some other entity seizing your car, like in satisfying a judgment....

In Louisiana if the lien holder, or superior creditor, asserts their rights prior to the sale, the sheriff is required to disperse the proceeds first to them and then to the subsequent creditors. If you owe quite a lot on the car, the judgment creditor must decide if they think the item will sell for enough money to satisfy the first superior lien, the sheriff's fees, and still get enough to make it worth their while.

Answer 6

Yes. And the payoff, will usually be less than the amount owed on the loan. Work with the bank. They do not want the car, only their money.

Answer 7

Most of the time when a car get repossessed you will still have to still pay monthly payments. In some cases you will not have to continuing paying.