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Back in May I financed a 1996 Jeep. By June I fell behind and by August I was behind two months. I never got a call or a letter allowing my to rectify the back payment. Then my vehicle was repossessed. I called to find out what I could do to retrieve the vehicle and I was told I could pay them $2000 in 15 days. I know it was inevitable that they were coming to repossess the vehicle but is that standard procedure not to contact my verbally or in writing?
RENEE D.
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Renee,
It is standard procedure not to contact a person prior to repossession. Imagine what it must be like to reposes a vehicle. It is not personal; the person is only doing the job they were hired to do. Never the less, it is sometimes human nature to “shoot the messenger” and the repossessor never know how a person will react. Alerting the car owner that a possession is imminent may only cause further difficulties.
Susan
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I had a car repossessed by VW in Dec. 2000. I recently received information in regard to a deficiency payment. Why am I still liable for a car that I no longer have in my possession? And how long do I have to wait before obtaining another car loan? Are there any Pennsylvania laws specific to this subject?
Thank you, MRL
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MRL,
A "deficiency balance" is the difference between what the lender sold the car for and what you owe on the loan. Apparently, the lender auctioned off your car and the highest bidder did not pay enough to cover your loan amount. Even though you do not have the car any more, you will have to pay the balance or risk legal action. There are no specific laws, which I am aware of, to prevent your repossession or their attempt to collect the deficiency balance.
The repossession will remain on your credit report for up to seven years. If you do not pay the deficiency balance in a timely manner, this could negatively affect your credit report as well. My recommendation is to pay the balance as quickly as possible and get on with your financial life.
Susan
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I want to know is it better for me to voluntarily give my car back or let them take it. And how do I voluntarily return my car. Thank you.
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Many people are afraid to talk with their creditors, fearing that they will call attention to their delinquency. However, talking with them can only help; the company already knows that you are delinquent. I recommend that you call your creditor to discuss your options.
To answer your question, a repossession is a repossession, voluntary or not. The only difference is that by turning the car in yourself, you will avoid the stress of wondering when and where the repossession will happen. If you take my advice and make that call, maybe the situation can be avoided entirely.
Best Wishes,
Susan
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If my car is close to being repossesed, can i trade my car for lesser payments, and then have the car dealer ship pay off the balance?
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Yes, you can try to trade in your car for a car with a lower payment. If you can, the dealer will payoff the balance on your current car. But you might have a difficult time doing this. You state your car is close to being repossessed. I assume you are delinquent with your car payments. If so, another lender will probably not want to finance another car for you for fear that you will become delinquent with your payments with them also.
The best thing you can do is go to a car dealer immediately and see if you can trade your car in for another car with lower payments and see what happens. Good luck.
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