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auto repossession or voluntary surrender

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B

bfrmmass

Guest
What is the name of your state?

Massachusetts

Is it better to voluntarily surrender a vehicle before it is repossessed or is there no real difference.

What are the consequences of either?

Thanks
 


C

crazykeith

Guest
Hi I live in maryland and my friend here is looking into having his car reposed. I think the credit people told him if he had it voluntary reposed and paid whatever the auction didnt bring it would not affect his credit. But if he went the other way it would give him bad credit for about 7 years. I am not sure if mass. is like this or what. Just a thought for you
 

JETX

Senior Member
"Is it better to voluntarily surrender a vehicle before it is repossessed or is there no real difference."
*** It doesn't make any difference on your credit 'hit'. It will make a difference on the amount you will have to pay.
Simply, by voluntarily agreeing to the reposession and driving the vehicle to their facility, you will save on the several hundred dollars that they would have pad a 'recovery service' to locate and tow your vehicle.

One other thing to consider.... if your car is sellable, it is MUCH better for you to sell it yourself, even at the payments or below if needed. Otherwise, the lender will sell it at auction, usually for far less than you owe. And then YOU have to pay the deficiency (difference between amount owed and the amount received at action, plus costs).

Example, lets say you owe $5000 on a vehicle, and that you are 'upside down' (owe more than it is worth), with the vehicle worth $4500. Sell it for the $4500 and make up the $500 difference out of pocket and walk away.
Otherwise, that car might sell for $2000 (or less) at auction and you will still owe $3000 ($5000 owed minus $2000 sold) for a car that you no longer have!!!
 

JETX

Senior Member
Please don't hijack someone elses thread. It is both rude and confusing to anyone who is posting to him.
If you will start your own thread, we will be glad to try to answer there.
 

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