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Posted in Auto Loans
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nightwingjin

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Need advice on potential repo vehicle
My car is only worth 4000 dollars and I owe 9000. I financed a new car with a considerably lower interest rate and don't need the old car any more. Should I voluntarily give the car back to the bank?

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If you want to jack up your credit..... Try to find a buyer, try to owner finance if possible.... Anything but messing up your credit if it is possible......

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Don't do it!

I had the same idea several years ago and what happened was a complete MESS!

It depends on what state you live in or where you bought your car, but I bought mine in RI and there is a law there where you are responsible for the remaining balance on your loan after the bank sells your car at auction. What that means is, your car is only worth 4000, but you owe 9000, the bank can go ahead and sell that car for 4000 and come to you looking for the remaining 5000. At this point not only would you have a reposession on your record, but you would have the bank looking for the rest of their money as well.

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