Yes, I understand that they take it, and sell it, and you pay the outstanding. BUT.
If there was (cosmetic) damage or any minor repairs needed to the car before it got repo’d, would they do the repairs and then sell it at auction? Or would they just sell as is to get as much, or as little as they can for it? I’ve hear a horror story about repair costs being tacke don to the debt balance. Is this fact or fiction?
Thanks Cosmo.
Others…did you actually ready the first part of my question? Sorry, but I do know that. I’m asking about repairs/damage specifically.
Originally posted 2008-12-20 00:13:08.
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After your vehicle is reposed, it will be taken to an impound lot where you will be given an opportunity to reclaim. After 30 days your vehicle will be taken to an auto auction where it will be sold, as is. It is not likely they will spend anymore time/money to repair anything, as you are responsible for the balance after the vehicle is sold. A normal buyer at an auto auction is a wholesale buyer. Title will be transferred from the lending intuition to the buyer.
Now the tough part. Lets say you owe $8,000 on your car. At auction, even though the vehicle is worth $9,500 to 11,500.00, it brings only $5,500.00 (again, wholesale). The $5,500.00 will be applied to the payoff and thee lending intuition that is carrying the note on your car will come after you for the rest of the balance ($2,500.00) plus the recovery fee (tow) and storage, (3-8.00 a day for the 30 days it was in impound).
If you have a vehicle that you think may be reposed, I would contact your lending intuition and inquire the payoff. Make every effort to sell the vehicle for the payoff, or as close as you can get. You will have to come up with the difference (payoff/ sell price) to clear the title.
Another note: Don’t leave anything of value in the car an ANY TIME! You stand a chance of loosing any personal items inside the car should it be picked up. Even though they have no legal right to the contents, how you going to prove the car had your $2,500.00 lap top inside when it was picked up?
they will sell it and if its less than what you owe then you pay the difference.you cannot be charged for more than you still owe on the vehicle.or you can tell them to go to hell and not pay them.only debt you can go to jail for is taxes.this is if theyre going to be a jerk about it.
When a car is repo’d, you can owe for the entire cost of the car, the cost to repossess it, the cost of filing paperwork to reposess it, and a penalty fee if it is included in your contract or loan agreement. The price of resale will be taken off, but since most of these cars are resold back to individuals who are employees of the used car lots, they are selling back to themselfs at a huge loss, which you are required to cover. In other words, the can get you for quite a lot of money, sometimes for more than the car is actually worth.
Lesson one: DO NOT MISS CAR PAYMENTS!
Lesson two: NEVER, NEVER, NEVER buy a car from a Buy Here, Pay Here car lot. 90% are crooks, and will loose payments intentionally if your car is one that is popular that can be resold again and again.
They’ll sell it for whatever they can get for it and you’re on the hook for the difference of what you owed when the repossessed it.