Info on Repossessions of vehicle.. | FerrariChat
Buy

Info on Repossessions of vehicle..

Discussion in 'Other Off Topic Forum' started by 150shot, Jun 7, 2005.

This site may earn a commission from merchant affiliate links, including eBay, Amazon, Skimlinks, and others.

  1. 150shot

    150shot Formula Junior

    Jun 15, 2003
    807
    San Dimas, CA
    #1 150shot, Jun 7, 2005
    Hello- a friend of mines car is eventually going to get repoed. We are wondering if the car is worth about 25k and she owes 30k on it , where does the 5k difference go?

    Does it get paid by the owner? any other info that can be helpful?

    thanks...
     
  2. Etcetera

    Etcetera Two Time F1 World Champ
    Silver Subscribed

    Dec 7, 2003
    23,971
    Full Name:
    C6H14O5
    #2 Etcetera, Jun 7, 2005
    The difference comes out of her bank account.
     
  3. Scott85

    Scott85 Formula 3

    Dec 16, 2000
    1,240
    Dayton , OH
    #3 Scott85, Jun 7, 2005
    If they send the car to an auction, she may need to owe more then $5K , especially if it doesn't sell for $25K .
     
  4. matteo

    matteo F1 World Champ

    Aug 1, 2002
    13,748
    On a plane somewhere
    Full Name:
    Heir Butt
    #4 matteo, Jun 7, 2005
    It would be worth it for her to pay what is owned and then try and sell it PP.

    That would reduce her exposure to credit issues and additional lost money.
     
  5. Schatten

    Schatten F1 World Champ
    Owner

    Apr 3, 2001
    11,238
    Austin, TX
    Full Name:
    Randy
    #5 Schatten, Jun 7, 2005
    More specifically, the financing % and depreciated value of the car.
     
  6. SRT Mike

    SRT Mike Two Time F1 World Champ

    Oct 31, 2003
    23,343
    Taxachusetts
    Full Name:
    Raymond Luxury Yacht
    #6 SRT Mike, Jun 7, 2005
    If she is unable to make the payments and knows she will continue to be unable to make them, then her best bet is to either sell the car herself privately, because she will get more than if it goes to a repo auction. Ever $100 more she gets for the car is $100 less she will be on the hook to pay.

    If she is unwilling to do that, then an alternate solution would be to notify the lien holder and voluntarily give up the car (voluntary repo). I am not sure of the specific laws, but she would not end up with as many charges, fees, interest, etc etc if she did a voluntary repo. A friend did that - bought a nice sports car while he was here on a work visa from abroad. Job disappeared, he was going home on very short notice (like a week) so he did a voluntary repo.

    If she has hope that she will be able to make payments again soon, she should call the bank/lienholder and discuss it with them. She has them by the balls, if they know the car is worth less than the outstanding owed. They know they will never collect that (most likely) so its in their best interest to work out the problem on the loan. They can defer payments to the end of the loan, or even let her pay interest-only for a while, or various other things.

    She should be responsible in this though... just because she has the power position doesn't mean she doesn't owe the money she agreed to pay. I hope it works out for her. Worst case, she could just declare BK and start fresh (and smarter).
     

Share This Page