How is the balance of the car loan paid off after the car has been auctioned off?
Originally posted 2009-09-05 12:43:13.
Related posts:
- How can a auto lender report you if they never paid the car lot in full? I have not so good credit and 4 kids. I purchased a van from a car lot under credit acceptance. It was a 93 dodge caravan that was a piece of crap anyway. I was placed under 300 a month payment with FULL COVERAGE LOL insurance. The people at...
- If I had life insurance on an auto loan and forgot, then the car got repoed what can I do? My husband past away last year, it was self inflicted so I thought I couldn’t claim on the life insurance from the auto loans, the second vehicle got repo’d about 6 months later. Now I find out from my bank that it was good since we had the loan...
- Questions about a repo for a car? I bought a car using wells fargo as my auto loan the car was repossed a year ago,on my credit report it says high balance $5,843 and then balance $8,000 the car was sold at auction in april of last year for $6,300,I called the creditor and he told...
{ 3 comments… read them below or add one }
You pay the diff in what you owe minus what the car was sold for.
Usually what the car is auctioned for does not satisfy the loan.
because of interest and fees. The person who had the car loan will still be responsible for any balance.
Let’s say you owe $12k on a car, and it’s auctioned off for $6k. They come after you for the $6k difference plus maybe $2k in attorneys and repossession fees. Since you broke the contract, this also is a black mark on your credit. So, as you can see, it’s almost better to keep the car!
So what can you do? Definitely sell it and take a loss as opposed to having it repossessed. If all else fails, try to trade it in and take a loss, at least your payment might go down. If all else fails, try to talk to the company and have them move one of your payments to the end of the loan..that may give you some time.