Re: auto loan fault

Posted by Mike on December 27, 2001 at 14:36:55:

In Reply to: Re: auto loan fault posted by Mike on December 27, 2001 at 01:12:11:

Mr. Green,

I failed to mention one other possibility. The situation I mentioned in my previous post assumed that the car dealer financed the vehicle through his dealership. If a bank financed the car, they will have the car repo'ed and they will sell it as quick as possible, at any price. Banks are not in the car re-selling business and they don't want the hassle of "car dealing". The bank will probably sell the car to the first person who makes what they consider a reasonable offer. Then they ( the bank ) will come after you for the difference between what they sold the car for and the balance you owe. Sometimes, banks will sell the vehicle to car wholesellers which means they will get even less for the car and then come after you for an even larger sum of money !
Either way, you will be out quite a bit of money, so you see why I say that you don't want to let the vehicle be repossesed. I have a couple of friends who own their used car businesses -- that's how I know how the business works. Some used car dealers even desire a situation like yours. They know the car is probably in good shape and they can sell it again for the same price as they sold it to you, plus they've got your payments, you have paid all the repo costs and cleaning, detailing, and other incidentals. I've known of some dealers selling the same car several times in a short period of time due to situations like yours. By the third or fourth re-sell, the dealer has recovered nearly all of his cost of the vehicle and then every sell after that point is pure profit !

Mike

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