Anybody have their car repossessed?

[ThePrimerSuspect]

Long story short, I have a car that I hate and basically have no use for anymore. Sad part is that it still blue books for more than I even paid for it three years ago, but because it was hit and I got screwed on the insurance claim (shouyld've been totaled) its essentially worthless. Now it needs work and 4 tires, because it was poorly repaired, and I just can't justify putting any money into it. I actually used to repo cars for a living years ago, so I have a vague understanding of how this works, I'm just worried about my credit. I keep hearing conflicting stories. Some people say nothing happens, others say it screws up your credit. I'm pretty certain that you still end up being responsible for the balance owed minus what it sells for at auction. Just curious if anyone has dealt with this or maybe someone who works in finance could chime in.

[davin]

It will show on your credit report for 7 years and no bank will loan you money anymore because you are a threat. And the reason why it would be repo'ed is because you are not making the payments.

[KustomZ03]

It majorly screws up your credit. Then when banks finally decide to give you a loan you get ridiculously high interest rates. My cousin went through all this crap when he lost his job 4 years ago and couldn't afford to make his payments.

[CleanNeon98]

It won't totally bomb your credit but it will absolutely hurt it. I deal with people who have "voluntary reposessions" all the time, its not easy getting them approved for new loans.

[jpalamar]

I used to work in collections. Here is what likely will happen...


1. Once the bank repos the car they will take it to auction. They will deduct what it sells for(plus towing, storage, repo fees, auciton fees, ect) from your payoff and you will be left responsible for the remaining balance. If you don't pay, they can take you to court and get a judgment/sheriff sale/garnishment against you(try getting a loan for anything again while there is a judgment, it won't happen FYI judgements don't vanish either). Even as an employer I wouldn’t hire someone with an outstanding judgment. I would bet you will probally get more money in the long run if you just trade it in.

2. Your credit will get messed up. You will likely have to be months behind before they will repo it. This will show for 7 years from the date the account went past due.



Here are the options you have...


a. Sell it and pay whatever is left on the spot(bank won't release the title without it being paid in full). Credit card/personal loan/401k/borrow from family, whatever you have to do.

b. Ask the bank if you can do a short sale(they likely won't agree)... chances are they won't agree to it because the simple fact you are just being a bum and trying to get out of paying what you owe because you don’t want the car anymore.

c. trade it in towards something that you want and eat the negative equity(wouldn't do this because it will just put you in the same position you are in with just a different car)

d. Keep the car, fix it, and keep driving it(the only option that probably won't screw you royally)

e. Default on the loan

It won't totally bomb your credit but it will absolutely hurt it. I deal with people who have "voluntary reposessions" all the time, its not easy getting them approved for new loans.

You call not totally bombing your credit having to cross your fingers to even get approved for a 15+% interst loan with a crap load of money down for a car you don't want because your interest is so high you can only afford a turd?

[russiankid]

Rain + deer + tree = totalled.

[jpalamar]

Rain + deer + tree = totalled.

It would be much more fun to drive into a giant great white shark while no-where near the ocean.

[clubken]

Rain + deer + tree = totalled.

unclip fuel lines and match?

[inteva6184]

Classy.

[schaffer]

Glad everyone jumps to insurance fraud.


Just fix it and sell it.

[RedWabbit]

I was about to default on a loan for my vw. I lost my job and couldn't afford it anymore, I called them up told them what was going on and told them I had to give it back. I set up a time and gave them the keys. I checked my credit the next year and it said paid as agreed. nothing else about it from them. though I did get a bill in the mail for what was owed after auction. needless to say that didn't get paid either, still nothing on the credit about it. at the same time I had already defaulted on another loan for the civic I had at the time. I needed 1 more week and I would have had the money to pay it off. the repo man came and got it. that one went on the credit and is still there. that being said defaulting is definitely bad, I would do whatever I could to keep it from happening.

I can no longer use credit for anything, only cash. its good not to have any loans and stuff but when you need something that requires a loan you are screwed unless you save up the money.

[300zx_tt]

Info on said car, may be interested in it :thumbup:

[mcperson2k]

What I want to know is who told you not paying for something and letting it get repossessed wouldn't hurt your credit. :bigeek:

[ThePrimerSuspect]

I'm talking voluntary. Not just defaulting. Like I said, I used to repo. There's a hundred different scenarios people go through. Like redWabbit said, I know its gonna show up on my credit but if it says paid as agreed I'd probably be satisfied. I have a friend who's ex let the car get repoed and he bought a house a year later with no issues.

[jpalamar]

I'm talking voluntary. Not just defaulting. Like I said, I used to repo. There's a hundred different scenarios people go through. Like redWabbit said, I know its gonna show up on my credit but if it says paid as agreed I'd probably be satisfied.

Volunatary or not, it will show up on your credit report the same way. If it doesn't, the bank itself messed up.

[TR MS3]

Glad everyone jumps to insurance fraud.


Turn your problems into insurance problems! LOL

Seriously though, I would try to fix it and dump it. Unless you really don't care about the hit to your credit. Chalk it up to a life lesson, god knows I've had about a billion life lessons lol.

[Godofelru]

I'm talking voluntary. Not just defaulting. Like I said, I used to repo. There's a hundred different scenarios people go through. Like redWabbit said, I know its gonna show up on my credit but if it says paid as agreed I'd probably be satisfied. I have a friend who's ex let the car get repoed and he bought a house a year later with no issues.

What year was this home purchase? Depending on the time (pre-crash or post-crash) mortgage companies gave out loans to anyone and everyone regardless of credit or income.

Avoid defaulting if at all possible. 7 years with ruined credit is going to suck. Not to mention your car insurance rates *WILL* increase as you're a significant risk even if you've never missed a premium.

If you want to buy a house anytime soon don't count on it or expect 6+% interest rate.

[gdmbat85]

I'd suggest battling it out with the insurance company. You had a loan on the car so you had to have collision. They should be responsible for fixing the car properly. I was stopped at an intersection and a lady drove right into the front of my car. Her insurance company (geico sucks donkey dick) claimed that because I released the brake and allowed my car to begin rolling back to avoid having all the energy of the impact transfer into my car, that i was half at fault because I wasn't at a full stop. I told them to go **** themselves and refused to accept their payment of half the repair estimate. Called them up 2 years later because I was approaching the statute of limitations for property damage (a week away), and they agreed to pay 85% of the repair estimate.

[RedWabbit]

Not to mention your car insurance rates *WILL* increase as you're a significant risk even if you've never missed a premium.
.

I don't believe this completely right. even with my bad credit, I still have good rates with 3 cars insured.

[Chris B.]

I don't believe this completely right. even with my bad credit, I still have good rates with 3 cars insured.

Most automobile insurance companies use your credit rating to determine part of your insurance rates.

[Godofelru]

I don't believe this completely right. even with my bad credit, I still have good rates with 3 cars insured.



You may have good rates, but you *would* have better ones.

[TNTramair]

trading the car in for something else would be something i would look at. even if you have to roll say $3k over of negative equity it'll increase your payment by about $50.00 a month (based on a 60 month loan/ 5% interest) which to me would be worth it for to drive something new. if you get into something that holds value pretty well such as a Toyota camry or corrolla, you'll be out of negative equity in a few years.
the absolute last resort would be to have it repo'd or commit insurance fraud.