Even if your car is repossessed and later sold at auction, you might not be off the hook.
If your car sold at auction for less than what you owed on the loan, you must still pay the remaining balance to your lender.
The creditor will notify you of how much you owe and you will be responsible for making payments.
How bad does a repossession hurt your credit?
In all, a repo could cause a 100-point drop in your credit score, Sanford says. And late payments, collections and public records generally all stay on your credit for about seven years, according to myFICO.com. You can stop a repo. The key is to communicate with the lender.
How long before a car is repossessed?
A bank can repossess your vehicle when you’ve stopped making the monthly payments agreed upon in your financing arrangement. Most banks will begin the repossession process after you’ve stopped making payments for 60-90 days.
How much are repossession fees?
Also, to get back the personal property that was in your vehicle at the time of repossession you will likely have to pay a “removal processing” fee (about $50) plus a daily storage fee (about $10 per day, plus potentially more for “excessive quantities” or hazardous materials.
Photo in the article by “Geograph.ie”