Auto Repo Question

Auto Repo Question

Don Swanson	5/16/2005 1:51:50 PM
I have a question about an auto repo situation. A girl who is a real good friend of mine had her car repossed late last Fall because she could not afford the payments. She gave the car back. Now she wants to get a new car that has real low payments she can afford but now she wonders if they can come back and take away the new car too if they feel they should get some more money on the car that they repossessed?? Does anyone have any idea if they can take away another car if she decides to get one? Thanks in advance for any advice on this situation. She is low income and they cannot take anything she has anyway. Thanks



"John A. Weeks III"	5/18/2005 1:44:36 PM
In article <vcnh81tplgf9mo6r57qn5va582mk81sgpp@4ax.com>, Don Swanson <garfield@anet.com> wrote: I have a question about an auto repo situation. A girl who is a real good friend of mine had her car repossed late last Fall because she could not afford the payments. She gave the car back. Now she wants to get a new car that has real low payments she can afford but now she wonders if they can come back and take away the new car too if they feel they should get some more money on the car that they repossessed?? Does anyone have any idea if they can take away another car if she decides to get one? A creditor cannot take away property without a court order, other than the original car. What often happens is that the repo sells for less than the loan value, so they sue her for the shortage plus fees. That leads to a judgement, and with a judgement, they can garnish her wages (in some cases). She is low income and they cannot take anything she has anyway. Thanks With little money and bad credit, she has no business owning a car that has any value at all. Not until she gets her financial house in order. -john- -- ====================================================================== John A. Weeks III 952-432-2708 john@johnweeks.com Newave Communications http://www.johnweeks.com ======================================================================



Paul Cassel	5/18/2005 1:44:37 PM
Don Swanson wrote: I have a question about an auto repo situation. A girl who is a real good friend of mine had her car repossed late last Fall because she could not afford the payments. She gave the car back. Now she wants to get a new car that has real low payments she can afford but now she wonders if they can come back and take away the new car too if they feel they should get some more money on the car that they repossessed?? Does anyone have any idea if they can take away another car if she decides to get one? Thanks in advance for any advice on this situation. She is low income and they cannot take anything she has anyway. Thanks It's not a matter of how the finance company 'feels'. It's a matter of if they have the legal ability to take further action against this girl. If the car she turned in didn't sell for a sufficient amount to cover the loan and sale costs, the finance company may have gotten a deficiency judgement against this girl. If so, she would have gotten notice of same unless she is on the lam and trying to hide. You need to ask this girl about any such judgements or any action the finance company of the first car may have taken against her subsequent to her turning the car in. If there was none, then she is in the clear. Also State and local law varies when it comes to debtor / repossession issues. That may also bear. -paul ianal



"Stuart A. Bronstein"	5/18/2005 1:44:34 PM
Don Swanson <garfield@anet.com> wrote: I have a question about an auto repo situation. A girl who is a real good friend of mine had her car repossed late last Fall because she could not afford the payments. She gave the car back. Now she wants to get a new car that has real low payments she can afford but now she wonders if they can come back and take away the new car too if they feel they should get some more money on the car that they repossessed?? Normally what happens when someone can't make their car payments is the car goes back to the lender, whether voluntarily or through repossession. But that's not the end of the story. The lender will sell the car, often if not always at auction, and recover roughly half to two- thirds of its blue book value. They will then turn around and sue the debtor for the difference between the amount left on the loan and the amount they got from the sale. Once they get a judgment, they could well execute on a new car that your friend may purchase. Stu



"Dave"	5/18/2005 1:44:35 PM
Don Swanson wrote: I have a question about an auto repo situation. A girl who is a real good friend of mine had her car repossed late last Fall because she could not afford the payments. She gave the car back. Now she wants to get a new car that has real low payments she can afford but now she wonders if they can come back and take away the new car too if they feel they should get some more money on the car that they repossessed?? Does anyone have any idea if they can take away another car if she decides to get one? Thanks in advance for any advice on this situation. She is low income and they cannot take anything she has anyway. Thanks The lender from the first repossession can seek a deficiency judgment on the first auto loan if the amount of the repossessed auto was less than what was outstanding on the car loan, but that has nothing to do with her purchasing a second car. Although, I would be suprised if she can find a lender to finance a second car for her at a reasonable interest rate after the first repossession. If she buys a new car, the lender from the repossessed car does not have any security in the new car, so they could not legally repossess the new car.



"The Family"	5/18/2005 1:44:35 PM
"Don Swanson" <garfield@anet.com> wrote in message news:vcnh81tplgf9mo6r57qn5va582mk81sgpp@4ax.com... I have a question about an auto repo situation. A girl who is a real good friend of mine had her car repossed late last Fall because she could not afford the payments. She gave the car back. Now she wants to get a new car that has real low payments she can afford but now she wonders if they can come back and take away the new car too if they feel they should get some more money on the car that they repossessed?? Does anyone have any idea if they can take away another car if she decides to get one? Thanks in advance for any advice on this situation. She is low income and they cannot take anything she has anyway. Thanks Depending on the circumstances of the first repo, she could be sued for a deficiency. However, I doubt that will occur. Additionally, it sounds as if the planned purchase will put your girl friend squarely in upside down territory. As such, there would be no motive, or equity there to satisfy any type of judgment. However, a word of advice.... Your girl friend needs to find a car that she can fully afford to buy without financing. The lien holder of the repo'd car could still gain judgment for that deficiency. They probably won't, but rather, will just resell the car. But, this is only going to get worse with all the creative financing schemes available today. If your girl friend is all excited about what an impressive car she is now buying, at such a minuscule payment - ask yourself how this is? She'll be upside down from the moment of leaving the dealer, and when it comes time to buy again, the remaining negative equity will merely be rolled into the newer vehicle. Do her a real favor and get the exact details. Post them here, and let us review the numbers. Gary

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