What happens if your car gets re-po? Can the finance Co. go after you financialy?

CAN THE FINANCE CO. GO AFTER YOUR WAGES? HOW LONG BEFORE AFTER THEY CAN. WHAT CAN I DO TO AVOID ANY GARNISHMENTS.

What happens if your car gets re-po? Can the finance Co. go after you financialy?

When your car gets repossessed the finance company will add repossession fees to the amount of your loan balance, sell your car at auction and bill you for the unpaid balance. They may garnish your wages by law. Usually the unpaid balance is turned to the collection department who then will try to work out a payment schedule with you. If an agreement is not reached within a few weeks of the initial contact by collections, they may garnish your wages or sell your unpaid balance to a collection agency who may then start legal proceedings. There is no waiting period before they can start garnishment actions.

If you can avoid repo by working out a payment plan, you are going to benefit from that in that your credit will not suffer as much, and you get to keep your car. A repossession looks bad on your credit, and you will pay the highest interest rate available by law the next time you finance a car. You may have to wait for over a year before anyone but a buy-here-pay-here lot will extend you credit.

Your next car loan will be subject to huge fees imposed upon the dealer, and ultimately you, by the lender. It is not uncommon for a $5000.00 fee to be imposed on a $10000.00 car, effectively meaning the dealer will charge you $5000.00 more for your next car, and you will pay the highest interest rate to boot.

What happens if your car gets re-po? Can the finance Co. go after you financialy?

If they repo your car it will be resold and you will be responsible for the difference between what it made and what you owe plus all expenses , to avoid a garnishee you must make private arrangements to pay of the debt , but if you bought the car on a personal loan they cant touch the car anyway !!