Voluntary Reposession

[Christyk15]

I financed a car 2010 hyundai accent when i was in a pinch so i could continue going to work and back. It had 120k miles on it. Yes I signed the papers for this lease under the impression the car would be able to get me from point A to B. It was an extremely high interest rate of 21% so my 5k car now costs me 13k but i said yes because I didnt want to lose my job. I paid 220 a month on it on time every month on top of all these random repairs that started surfacing. I had to replace the coils then the tire rod a new tire then the exhaust rods break lights and a sensor problem. Even after all of that the car seemed worst. Eventually it would barely accelerate and I could no longer afford to fix it on top of payments. Once again I needed a car and it had only been 6 months so i tried to trade it in for another financed car that would be more reliable. The Kia dealership did not want to take it they suggested that i voluntarily reposess it and go through with the new finance which i did. So now i have a brand new reliable kia for 450 a month everything is all good and fine but i dont know what to do about the other car. I got a call saying i owe 6k on it still when the damn thing was listed at 5200. It's just rediculous. They sold me a lemon and are now threatening to send what i owe to collections. What do I do?

 

[FlyingRon]

First off, the issue appears not to be with KIA (or the dealer) but whoever holds the loan (which likely is an independent entity from either of those two). How exactly did you accomplish this "voluntary repossession?" Anyhow, presuming the lender got the car, they would sell it and you would still owe the difference between what was due on the loan (increased by accrued interest, and possibly inflated by legal/collection fees) and what they were able to sell the car for, unless you managed to get a release when you surrendered the car.

 

[Christyk15]

I called credit acceptance where the loan was from and told them what was wrong with the car and that i couldnt afford to fix it and pay for it so they came within 3 days to tow it out of my driveway. They put it up for auction and sent me the difference.

 

[FlyingRon]

So who called you and said you owed money on the first loan?

 

[Christyk15]

Credit acceptance the people i got the loan from they handled everything auction and all then called me saying I owe 6k. They said i can either pay a minimum of 100 a month or I can fill out a tax form and pay it in one lump sum of 3k. They gave me a day to think about it then said it would go to collections. I just dont want to have to pay that much for a car that wasnt driveable after spending so much on repairing it. It was like a domino effect one problem after another.

 

[NeilTheCop]

From your original post about the very high interest rate on the loan, you purchased the car from one of those small used car lots who also arranged the 'financing'. Would that be correct?

 

[adjusterjack]

I just dont want to have to pay that much for a car that wasnt driveable after spending so much on repairing it. It was like a domino effect one problem after another.

Doesn't matter. A repo is a repo, voluntary or not. When a repo car that needs lots of repairs is sold at auction it goes for very little money and you owe the difference between what is sold for and the balance of the loan plus any accrued interest. If that comes out to $6000 then that's what you owe.

Yes, it can go to collections if you don't pay. You can also be sued for it, which would add even more money to the bill.

 

[Christyk15]

From your original post about the very high interest rate on the loan, you purchased the car from one of those small used car lots who also arranged the 'financing'. Would that be correct?

Yes it was also with preowned factory one of those types of lots that will take any credit. Along with credit acceptance.

 

[Christyk15]

Doesn't matter. A repo is a repo, voluntary or not. When a repo car that needs lots of repairs is sold at auction it goes for very little money and you owe the difference between what is sold for and the balance of the loan plus any accrued interest. If that comes out to $6000 then that's what you owe.

Yes, it can go to collections if you don't pay. You can also be sued for it, which would add even more money to the bill.

Thats why im seeking advice. Im looking into my states lemon law.

 

[ShyCat]

Thats why im seeking advice. Im looking into my states lemon law.

Lemon laws apply to new cars, not used.

 

[Zigner]

Lemon laws apply to new cars, not used.

Depending on the state, that may not be accurate. I don't see the state listed though...maybe I missed it?

In any case, I believe that the question about the lemon law is moot (in any US state). The OP has already given up the car without availing him/herself of the protections of the law, whatever they may be in the unnamed state.

 

[TimStudiesLaw]

I called credit acceptance where the loan was from and told them what was wrong with the car and that i couldnt afford to fix it and pay for it so they came within 3 days to tow it out of my driveway. They put it up for auction and sent me the difference.

Based on this, you may not really owe them anything. Ask for a full accounting of the loan, legal fees, repo costs, and anything else they tried to charge you with. If you still owed more than the car drew at auction, they would have sent you a bill, not a check.

 

[adjusterjack]

they would have sent you a bill, not a check.

I don't think he got a check. I think they sent him a notice of the amount of the difference that he owes.

 

[Zigner]

I don't think he got a check. I think they sent him a notice of the amount of the difference that he owes.

You may be right - but the OP did say that they sent him "the difference", whatever that means. The OP needs to clarify it.

 

[Christyk15]

They sent me the difference. So it went up for auction and the 6k is what is left over on the loan. Im in Rhode Island and the lemon law DOES apply to new used or leased. It says if you've tried to repair the same problem 3 times with no results you can file a complaint at the Attorney generals office. I just feel like the dealership that got me into this lease totally lied about the cars condition. I was under the impression that the car would last more than 6 months.