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    tomi32's Avatar
    tomi32 Posts: 3, Reputation: 1
    New Member

    Aug 28, 2006, 06:44 PM
    Question about a voluntary repo
    I have a question, if a car is voluntarily repossessed, when the car is resold to someone at auction or wherever the amount I know left over is the responsibility of the person who voluntarily repo'd the vehicle, does this price include interest that was on the loan also or just the amount financed for the vehicle? Just curious and asking for a friend. Any input would be great thanks.:)
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member

    Aug 28, 2006, 07:07 PM
    Interest would be included.

    And why would you voluntarily repo?

    Have your friend sell the car themselves, odds are they can get a lot more in a private sale of the car than in a voluntary repo.
    tomi32's Avatar
    tomi32 Posts: 3, Reputation: 1
    New Member

    Aug 29, 2006, 04:36 AM
    So, even though the loan wouldn't be carried out for the 3,4, or 5 years whatever she has it for, she would still be liable for the interest on this even after they sell the car? She really got taken in this deal that's why she is checking out on options to get rid of car because it is a piece of junk and she paid wayyyyyyy too much for it because of her credit being bad the interest adds up to almost as much as the car loan itself.
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member

    Aug 29, 2006, 06:07 AM
    Hi tomi:

    This sounds like a bad situation getting worse. It wouldn't surprise me if they tried to charge her for everything, (plus the tuition on their children's private school). However, just because they charge her, doesn't mean she owes it.

    It's my opinion, that they are entitled to interest up till the time they recover all their money. They are NOT entitled to interest on money that is already paid back. If you called the bank/finance company and asked them for a payoff figure, that amount should be WAYYYYYY less than the total amount of the loan at maturity including interest. She should sell the car herself, and pay off only that amount. If she lets the bank do it, they'll probably sell it to one of their friends for half what it's worth, because they know your friend will have to pay the difference.

    A voluntary repo in terms of her credit score, is just as bad as if the bank took it.

    s_cianci's Avatar
    s_cianci Posts: 5,472, Reputation: 760
    Uber Member

    Aug 29, 2006, 10:51 AM
    It would probably also include interest on the unsatisfied balance.
    tomi32's Avatar
    tomi32 Posts: 3, Reputation: 1
    New Member

    Sep 5, 2006, 05:58 AM
    Thanks for all your information. I believe she has came to an agreement with the car dealership and they are going to work with her so she won't have to use this option.

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