Dear 1jaybird-ga;
Thank you for allowing me to answer your interesting question.
Typically repossession does not cost the car owner anything ? at least
not initially. The dealership or creditor who takes the car back
usually re-sells the car and applies the amount the car sells for
toward your debt. If the amount the car sells for does not cover the
entire amount that you owed the creditor at the time you surrendered
the car, the creditor can sue you for the remaining amount owed plus
any repossession fees, early termination fees, court costs, etc:
This article from the Federal Trade Commission that details your
rights and general expectations should explain it all in simple, clear
detail:
?A deficiency is any amount you still owe on your contract after your
creditor or lessor sells the vehicle and applies the amount received
to your unpaid obligation. For example, if you owe $2,500 on the car
and your creditor or lessor sells the car for $1,500, the deficiency
is $1,000 plus any other fees you owe under the contract, such as
those related to the repossession and early termination of your lease
or early payoff of your financing. In most states, a creditor or
lessor who has followed the proper procedures for repossession and
sale is allowed to sue you for a deficiency judgment to collect the
remaining amount owed on your credit or lease contract.?
FACTS FOR CONSUMERS
http://www.ftc.gov/bcp/conline/pubs/autos/carrepo.htm
I hope you find that my answer exceeds your expectations. If you have
any questions about my research please post a clarification request
prior to rating the answer. Otherwise I welcome your rating and your
final comments and I look forward to working with you again in the
near future. Thank you for bringing your question to us.
Best regards;
Tutuzdad-ga ? Google Answers Researcher
INFORMATION SOURCES
Defined above
SEARCH STRATEGY
SEARCH ENGINE USED:
Google ://www.google.com
SEARCH TERMS USED:
Repossession
Car
Vehicle
Pay
Obligation
Owed |
