What will happen if i let my car get repossessed?

i am wanting to buy an old small car that will be better on gas than my new gas guzzler of a truck which is a chevy blazer. i am on a five year loan for the car through the bank. i was told that i cant buy another car and then switch the insurance from my blazer to the car that i want to buy outright. so now i have to put both cars on the insurance and im not sure but i think that will be a lot more expensive. so im thinking of just putting insurance on my new car and stop paying for the old one, so it will get repossessed. my credit is already terrible so i dont care about that but im wondering wat will happen, will i get a fee, will i be taken to court, wat is the consequences to getting ur car repossessed. wat should i do in this situation, should i buy another car and then put insurance on it and stop paying for my car. can i do that? wat will happen.

Kizzy

Depends on the condition of the vehicle. After all the paperwork is processed the bank will either put it on a lot (if they have one) or sell it at auction. If they don't get what the loan is worth you could be responsible for the remainder, it's called a deficiency balance.

It doesn't do you any good on your credit but seems that you really don't care about that!

chattergurl1986

They charge you out the butt for it. And you get taken to court, just sell the truck and buy the car, use it as a trade in and get a new cheaper smaller car. That way you dont have to have insurance on the truck.
Unfortunately on ANYTHING you are making payments on you have to have it insured.

superyduperymommy

well, as you probablly know, it will go on your credit. you might be charged for the towing, and storage of your car at the impound lot as well. if the car sells through auction, the remainder of what they sold it for will go on your credit. just to let you know, my husband had a cable bill placed on his credit report, and even though it's paid off, it still stays on there for seven years. imagine what a car loan will look like in the future when you want to buy something.

Ian F

Hahaha...good luck buying another car with anything but cash if you do that.

And adding another car to your insurance, assuming you're not adding a Corvette or something, is generally not very expensive. I mean it could literally be an extra 5 bucks per month. It isn't like having another car means you will be driving more. Your risk doesn't actually increase much.

Oh, and with bad credit, you shouldn't be out getting car loans that you would have any trouble paying anyway.

8 Valves of Fury

I would highly suggest not letting that car get reposessed. My ex-wife's experience was losing the car after 3 months of non-payment, then it usually gets sold at an auction price waaay less than what you owe, then they come after you for the balance. Afterwards it's going to be on your credit report. You may not be concerned with your current credit rating, but keep in mind that's what your interest rates are going to be based on and it takes time to clean up your credit. As long as you have a loan on that car, you won't be able to drop the insurance on it either.

I'd make an attempt to sell it while your payments are current. You could always talk to the lender and look at re-finance options too.

Scott H

You may not know that even if your car gets repossessed, you STILL OWE THE MONEY. Now you are paying for a car you'll never see or drive again. Does that sound like a good idea? The lender will sell your Blazer for a minimal price, and you will owe the balance between the loan amount and what they sold it for, plus recovery and legal fees.

oqee

you will get letter from court to pay the fine if the fine is more than $3000.
if less than that you will just get letter from collection company.
and you will hard to buy car from dealer.

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