Anonymous asked in Cars & TransportationBuying & Selling · 5 months ago

What happens if owe on a title loan but move out of town (with the car)?


$600 loan 1 year old

Already paid approximately $945


Still owe $260 not including interest

Will they take it to court or come locate me and confiscate this hunk of junk

and if they do will the scores be settled?

11 Answers

  • Anonymous
    5 months ago

    You call it a hunk of junk after 1 year? THAT IS YOUR FAULT.

    They can find you with their eyes closed. You still OWE &still have to pay.+interest. The sooner you pay it off, the less interest you pay on top of the purchase price.(interest is basically the payment towards the convenience of paying through a payment plan. It does not go toward the purchase of the car, just paying for the "service". Default on that and watch a penalty be added on top of it(all wasted money...that could have gone towards some serious beer.

    If it EVER SHOULD GO TO COURT they lose nothing...for they will win their case. You have to pay the court costs, the cost of their lawyer and still have to pay the car off according to the directions of the judge.

    Source..Watched Judge Judy.

  • Scott
    Lv 6
    5 months ago

    Guess what? YOU STILL OWE THE MONEY! Moving doesn't eliminate your debt, nor does it make you immune from repossession. They can and will find you.

  • 5 months ago

    These companies have been through this many times before. They can find you, and will likely find and take the car. THEN, they will hound you for the rest of the money you owe. If they can't get the money, they'll eventually sell the debt to a collection agency, who will hound you to pay.

    You WONT get out of paying, so do it now while it wont cost a lot.

  • 5 months ago

    Believe me when I say that they will come after you for everything they're owed. Here's the thing, everything you put them through, you're going to pay for. They need to track it down? Repo it? Store it? Take you to court to recover their money? You're paying for everything, plus the court fees, PLUS the $260 you still owe. This could potentially cost you thousands. In addition, because of the judgement against you, in states where it's legal (most states), they can file to garnish your wages, taking up to 25% of your net (take home) pay. Or, you can just pay the $260 that you owe.

    Source(s): 20 years retail auto sales experience.
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  • 5 months ago

    Just pay what you owe $260 is only half a weeks work at $10 per hour (less is you do 12 hour shifts)

    Yes, they will come and look for you.

    Yes, the will add the charges for finding you to your debt.

    Yes, they will do this even if you only owe $10.

    No, the debt will NOT be written off, why kill a goose that's laying golden eggs? So long as you owe they can make money out of you. The further away you move the higher the recovery charges.

  • y
    Lv 7
    5 months ago

    So you are planning on defaulting on your loan?

    They could put a lean, could go after the hunk of junk and then sell it, but you would be responsible for whatever that cost them plus what was left on the loan, minus whatever low ball deal, if any they sold it for. It would cost you more in the long run.

  • 5 months ago

    No. People seem to think that when they repossess a car "the score is settled". Nope it isn't. My brother - in - law went through this. They came and took his car after he lost his job and couldn't pay for it anymore. Now they are taking him to court and his credit rating is trashed. This is because he defaulted on a legal contract. The car depreciated and the difference had to make up, it cost to do all the paperwork and settle legal fees as well as pay the repo-men to find, haul away the car and pay their storage fees. This all adds up to quite a bit of money. If I were you, I'd just pay the $260. That's a pittance of what you will own if they repo it.

  • A.J.
    Lv 7
    5 months ago

    If it's a title loan, they put a lien on the car such that it cannot be sold anywhere in the USA legally without paying off the lien. Further, the unpaid debt shows up on credit reports for at least 3 years and up to 7. Renting an apartment or taking a loan or getting a credit card all get impacted by credit score and credit history.

    They charge the high interest rates and fees to account for unpaid loans and don't chase you down if not local.

    They can eventually write it off and mail a 1099 to your address on record and IRS and the write off is part of your taxable income. When you don't know about it because you moved without mail forwarding after end of year, you can have issues in any tax refunds or income tax filings.

    They can be a pain without coming after the car or court filing, but court filings are easy for them to do.

  • Anonymous
    5 months ago

    We can't tell you because the rules governing title loans are different in each state. Ask the lender exactly what happens. While you may be ok to move out of town you probably won't be ok to move out of state because you'll need the title to re-license the vehicle and you won't get it back until you pay it off. If you leave the state and stop paying you'll be sorry you didn't just come up with a measly 260 bucks.

  • 5 months ago

    They probably won't take you to court because it would cost them more in lawyers' fees than what they'd get back in return.

    However, that debt is going to be connected to your social security number - and the next time you want a loan for a new vehicle or credit for anything else, that outstanding debt is going to be a problem for you.

    It would be best to make payments until the debt is resolved.

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