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Posted in Auto Loans
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robtaylortattoos

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if a car is repoed do i have to repay the loan any way?
i had a car repoed and in my summary it states i owe X amount of money on it. do i have to pay for the car even though i dont have own it and they took it back or how do i go about getting that off my credit?

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The way a repo works is that let's say you owe $10k at the time of repo, the finance company puts the car for auction. If at auction they receive $10k, you would be free and clear.  However, if they only receive $7k for the car at auction, then you are still liable for the $3k that remains due.Conversely if you owed $3k on the car and it sold at auction for $7k, they would actually owe you the $4k excess.  So yes you have to pay for whatever is still owed after the car was auctioned. If it is a recent repo, you will need to wait until the car is sold before you will have your accurate remaning balance.

Repayment is the only way to get the current negative account changed over to "Paid and closed." However, do note that the late payments, and the listing that it was repo'd will stay on your account for 7 year, but it is much better for your credit if it is paid and closed as opposed to remaing due.

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