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Re: auto loan fault
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Posted by Mike
on December 27, 2001 at 01:12:11:
In Reply to: auto loan fault posted by G Green on December 26, 2001 at 23:47:37:
Mr. Green,
If you let the car be repossesed, several bad things will happen.
1) The item will show up on the credit report as a repossession -- that's not good for future credit should you need it.
2)The dealer will re-sell the vehicle after he reposses it and will bill you for all the costs of the repossession -- towing, cleaning & detailing the vehicle to make it "re-sellable", administration costs ( paperwork to have a title cleared-up for the next buyer ), and any attorney's fees and/or court costs to take care of any legal matters.
I know this doesn't sound necessarily fair, but a repo says to the dealer that you're a dead-beat who doesn't live up to your word and because of that, he will "punish" you by making you pay all costs to make the car sellable again.
3) You will be held responsible to pay the difference between what you owe on the car and what the dealer re-sells it for. If it is a used car, then the difference should not be that bad if the car is in as good of a shape now as it was when you purchased it. ( no scratches or body damage, motor & drive-train good with no problems, etc. ) If it is a new car, the difference will be much higher because new vehicles depreciate much faster than used ones. ( It's no longer "new" once it's been sold )
The best solution would be to find someone to sell the car to-- an individual, not a dealer. You can recover most if not all of the balance owed on the car that way. Run an ad in your local paper(s), put ads up on bulletin boards at work and other locations. You can find folks who can get the money from their credit unions or banks. You may have to make another payment or two while waiting to sell the car, but that's better than a repo on your credit report. If you know the prospective buyer well enough, you could let him "take over the payments" if you trust him/her enough and that's the only choice you have left. Mike
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