I am considering this since I was laid off. I have never defaulted on anything so I am curious as to what happens if you take this route. I live in Az and am married although the loan is in my name only.
I am considering this since I was laid off. I have never defaulted on anything so I am curious as to what happens if you take this route. I live in Az and am married although the loan is in my name only.
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Auto finance is what I do for a living and the first poster is not taking this as serious as he should.
In the first place a repossession is one of the worst things that can show on your credit, he’s right about them selling the vehicle and coming after you for the difference plus all fees for the auction, towing, storage, reconditioning, interest and lawyers.
This will amount to several thousand dollars and they can sue you, get a judgment and garnish your wages (it is allowed in AZ), attach bank accounts and file liens on any other property you may own, add to this that AZ is a community property State and they can come after your wife as well.
All of this will show on your credit for the next 7-years making it very hard to get any other types of loans without making massive down payments, paying huge fees and State maximum interest rates.
Comment by SPIFIMAN1 — January 24, 2010 @ 8:04 pm
all that it means is the vehicle will be sold in a auction and the differnece of what they get at auction and the loan difference you will have to pay and it will go on your credit as the same a repo is a repo and it will be on there for 7 years then it will be removed but the dealerships all over is doing 2nd chance on buying a car so don’t worry so much. I know in texas they can threat to sue you and garnish your wages but they cannot due that they can just bug the shi* out of you but if you change your phone number and make it unlisited then they can’t bug you anymore over the phone.
Comment by kelly — January 24, 2010 @ 8:04 pm
I agree with #2 answer. The reposession will show it was voluntary which is better than involuntary. They will sell the auto at an auction and pay down your loan with the proceeds. The remainder owed is a deficiency balance and yes they can sue you for it. They will proceed with a law suit and look to get a judgement against you. They can then garnish your wages (if you’re working), liens on your property, bank levy etc…
Have you considered trying to work on a payment arrangement with them? Or possibly selling the car private party to try and get the most amount for the car you can? That might help because at auctions, cars go from anywhere to 50-75% of the actual value of the car so the deficiency balance is much higher.
Good luck and it’s a good thing you’re doing your research before you make a move.
Comment by Kat — January 24, 2010 @ 8:04 pm