Have you or someone you know ever had a car repossessed?

[Devilboy28]

Is it a big deal? What's involved? My brother bought a new car with cash
(401k loan) and he has stopped making payments on his 1999 Dodge Dakota because he doesn't drive it anymore. He still owns $10k and it's worth about $8k. He evidently got a call saying the finance company with his truck is going to repo it but he isn't worried. I told him I would ask around and research the process. He's 25 years old, working full time and going to school part time. How bad will this effect his credit? Will they sell it and he will have to pay the balance? How does it all work? Thanks for any help or input.

[1SL1k30thCam]

Re: Have you or someone you know ever had a car repossessed?

My best friend had a 2001 Jetta VR6 repo'd. He still owed around 17 on it. When the repo'd they auctioned the Jetta off at 8K which he had to pay the remainder of that balance. He has yet been able to purchase another vehicle. Dealers will not work with someone with a REPO they can work around bankruptcies and horrible horrible credit, but a repo they wont do it.

[DAS BOOT]

Re: Have you or someone you know ever had a car repossessed?

yeah it will mess him up... He is better off, selling it or something then paying hte difference, even take out a loan to pay the difference.

he will be paying thousands upon thousands of dollars for years because of a repo on credit.


higher interest rates on new cars(if he can get a loan for one with a repo) and where it will kill him the most is if he ever buys a house in like the next 10=15 years.

that not even just the little crap like having to put a deposit down on every utility service you start up, some landlords making you front the first and last months rent before you move in... etc....

all to avoid paying $2k



he needs to do something with it, he can look into it, but I heard there is a way you can get out of upside down loans on cars by leasing, I don't remember the exact way but search it out.

[Mighty Thor]

Re: Have you or someone you know ever had a car repossessed?

It will mess up his credit big time. My co-worker has a Dodge Ram. She ended up returning it back to the bank because she couldn't afford payments anymore.

She wanted to kick herself in the behind when she found out that she only owes $4800 on it. A little bit more struggling and the truck would have been hers. Now she couldn't afford to buy a new car because of her history, they only give it to her with a high interest.

My brother in-law bought a brand new Eclipse. He couldn't afford the payment. The problem was that her mom co-signed for it and now the bank is after her. I felt bad for her. At first he approached us and asked us to either buy it for him or co-signed. My wife wanted too but I told her that it would be a big mistake. Turns out I was right.

[sac2165]

Re: Have you or someone you know ever had a car repossessed?

Taking a 401k loan at 25 & stopping payments on a car?? Two great decisions.

Consequences will cost 10-fold easy over the balance of his lifetime -

[DAS BOOT]

Re: Have you or someone you know ever had a car repossessed?

Taking a 401k loan at 25 & stopping payments on a car?? Two great decisions.

Consequences will cost 10-fold easy over the balance of his lifetime -

exactly... I am kicking myself in the butt for starting so late on my 401k at 24