Auto Repo

Dude, Where's my Car?

OOPS! OK, Here is what will happen. You have a period of time to recover your vehicle, usually quite expensive, but it can be done. Check with your lender, the time varies by state. Your "stuff" left in the car can be picked up at the repo lot, they will mail you a notice to the address on the registration or loan account. They usually lose the change in the ash tray, though!

This same scenario works for cars, trucks, boats, and rv's. Not quite sure how it works for aircraft.

Your Vehicle will be sold, usually at auction, but it may be priced, and put on a lot for sale. (many credit unions do the sale lot scenario)

It will bring less than what you owe on it, especially after fees and other costs are added to the note. The lender will then try to collect the difference from you, it will probably sell to collections as time goes by. This is now unsecured debt, they have no collateral (the auto sold). The balance can be settled and negotiated for less, or bankruptcy is an option for this as well.

A "voluntary repo" where you drop the vehicle off saves you the repo man fee, and that's about all. The impact on your credit score is the same. A repo is a repo!

The worst repossessions we have seen include a $9500 car repo'ed, sold, and then it turned into a $13k collection! Also, $32k cars bought, repossessed, and a $58k collection! All gone from the credit reports now! Thanks CCFG!

We have also seen $38k repos that now show on a credit report as "account closed, paid as agreed" Really!

Think you know what credit repair can't do with a credit report? Think Again!