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After repo - balance owed on car?

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What is the name of your state? New Jersey

state - new jersey.
newly (about 1 month ago) purchased a car (financed with a finance company) and I absolutely can't afford the payments and I want to get out of the agreement - 1) can I voluntarily offer the car back to the finance company or dealership (best case) OR 2) if I have it repo'd and say for arguement sake its worth $15,000 and I financed the purchase price, taxes and other fees equaling $19,000 (which is why I am in this hole)- am I obligated to repay the balance remaining of $4,000?? I know the consequences are 1) the repo listed on my credit report and if their is still a balance owed wouldnt they just "charge off" the balance and move on OR 2) does the finance company come after me for that $4,000?? And what steps do they (if any) take to get the $4,000? (court/ sue/ garnish wages). Please advise and thank you for your help!! time is of the essense - I would like to act on this - thanks again!!


Senior Member
First of all, offering the car back to them and a voluntary repo are the same thing.

If if goes to repo, by any means, they will sell the car at auction and they'll get a LOT less than the 15k that its worth, and far less than the 19K you owe. So, your deficiency from a repo sale is going to be a LOT more than 4K, its likely to be twice that or more.

You would be liable for the deficiency and they are likely to sue you for it as well.

You may be better off selling the car for as much as you can get for it, pay the lender and refi the balance - which hopefully would be a LOT less than a repo deficiency lawsuit and you avoid the repo on your credit.


ok so they will sue me???

I thought they would just charge the balance off and for lack of a better term "forget about it"???


How can i sell the car if I dont have the title??
and whatever I get for it wont pay the balance in full??

I dont have other means of paying off the balance??
credit cards (not enough balance avail.)
cash (nope)
equity (none/ rent).


my advice, take it from some one who has been there too:

Do everything you can to keep the car and make your payments. In a year or two take it back and trade it in on something a lot cheaper, once you have made your payments on time for about a year, you may get better financing and lower payments.

seriously, don't commit credit suicide.

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