Anonymous
Anonymous asked in Cars & TransportationBuying & Selling · 8 months ago

what’re my options for this repossession ? ?

if I made payment arrangements with my car company and they said it wouldn’t be repossessed, then does. what am I able to do? I know I have the right to negotiate with the car lender to get my car back and to prevent repossession and that’s what I did. so why was my car repossessed when he (the worker) said it wouldn’t be, and I have been sticking to my payments? is there any way that they could wave some of the fees? 

10 Answers

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  • ?
    Lv 7
    8 months ago

    You have obviously missed payment dates. What did you think would happen?

  • 8 months ago

    I'm a used car dealer in Texas, and I do in house financing, what I have to say may or may not sit well with you, but I will give it to you straight.  It is VERY common for a dealer, or a representative of the dealer to tell you that your vehicle will not be up for repossession, and then repossess it anyways.  The reason why is because if the dealer informs the customer that the vehicle will be up for repossession, often times customers will attempt to hide the vehicle, complicating the repo process.  As long as the vehicle remains readily accessible, the repo process is easier.

    Your rights after repossession will vary from state to state, but in general, you will a limited time (in most states it is 10 days, but some states are longer) to "cure the default."  That means that while your vehicle was repossessed because the lender is accusing you of breaching the contract (the financial installment agreement), if you can remedy the breach, the lender must reinstate the loan.  The most common breach is a late or non-payment.  However, most contracts have a language that makes the customer (you) responsible for any fees incurred in the repossession process.  The fees will vary from one dealer to the next, and from one state to the next.  Generally, the dealer will just tack on the cost of the repossession.  If the cost to repossess the vehicle was $300, and your payment was $350, then you would have to fork over $650 to get the car back.  Some states allow for the collection of late fees as well, in Texas the limit is 5% of the payment.  5% of 350 is $17.50, which would make the total $667.50 to cure the default.

    Be warned, that having a vehicle repossessed once does count against you, and will end up on your credit history.  Also, most states have adopted the Uniform Commercial Code (Louisiana is the only state that has not adopted the UCC in its entirety), and the UCC does allow, in certain circumstances, to refuse to reinstate the loan, and demand that you pay off the loan balance, in full, or they keep the car, keep the downpayment, keep any payments made up until then, and if there was a vehicle trade-in, they can keep that too.  The provision is Uniform Commercial Code, Article 1 (General Provisions), Part 3 (Territorial Applicability and General Rules), Section 309 (Option to Acceleration at Will).  Basically, if the lender believes in good faith, that you, the customer, has impair the prospect of repaying the loan, the lender is not required to reinstate the loan.  The reason why this should be of concern is because one repossession will typically not trigger this provision, but two repossessions can.  Also if lender has reason to believe that you impeded the repossession process, in some cases the argument can be made that the prospect of payment has been impaired.  As a dealer, I rarely use this, but I have in some cases, usually when I find that the customer has tampered with the GPS device to prevent me locating the vehicle.

    While the dealer is not required to, I strongly suggest that you speak with your dealer, and ask if your loan can be reinstated.  Most dealers will require that you bring the balance current before doing so, but some dealers will allow a split payment.  For example, if your payments are typically $500, and your past due balance is $800 (including fees), some dealers will allow you to pay half of the past due now ($400), and the other half on your next payment ($400 + your other payment of $500 for a total of $900).

  • zipper
    Lv 6
    8 months ago

    Someone failed to let the home office know of the arrangements, if this was word of mouth it is not legal; so I hope they put the arrangement in writing; if not your screwed:PAL

  • Never
    Lv 7
    8 months ago

    Highly unlikely. Your new arrangement after failing to pay your original arrangement will not preclude a repo no matter what they said.

    If you pay the amount you are behind, plus the repo & storage fees you should be able to get he car back.  The lender is not going to eat any of those costs. The repo company has to be paid and so does the storage lot.

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  • Anonymous
    8 months ago

    You can TRY  to negotiate, but we cannot tell you exactly what your options are because not all lenders have the same policies. I caqn tell you with certainty that several things aren't going to happen - they aren't going to waive the repo fee, which includes the fee charged by the repo company, the towing charge, and the daily storage fees, and they aren't going to forgive any of the late payment charges you owe. 

    So, call them, find out what you have to pay to get it back. If you don't get it back and catch up on payments, here is what will happen. They will auction the vehicle. When it is sold you will owe the lender the difference between what you owe and what they auction it for (which will probably be wholesale price). You will still owe the repo fees, the late fees, a contract cancellation fee, a towing fee, storage fees, and any taxes thereon. 

    In other words, you'll probably still be on the hook owing thousands, your credit will be ruined for 5-7 years,  you won't be able to buy another vehicle unless you pay cash, you'll find it harder to rent places to live because you're a bad credit risk, you'll pay higher insurance fees for the same reason, if an when you are able to qualify for credit again the interest rate will be exorbitant, and your life will basically suck for a very long time. 

    I hate to rub it in but EPIC FAIL.

  • Scott
    Lv 7
    8 months ago

    You failed to make your payments, end of story. You are the cause of this, NOT the bank or repossession company. They hold the cards, you have no leverage. If you want your car back, you pay the amount they are demanding. Pay your bills on time and you avoid problems like this.

  • 8 months ago

    The correct time to keep your promises to pay was long before the car was referred to a repo company. 

    They will legitimately tell you anything they need to in order to ensure the car is left somewhere they can easily repossess it.

    You’re also wrong in believing that you now have the right to renegotiate with the lender. It’s not your car, it’s theirs, and having once been bitten on the arše by you failing to keep your promises they’re not going to risk making that mistake twice now that they have their car back ready to be sold at auction. The time to negotiate was as soon as you became aware that you were going to fall short on the next scheduled repayment.

    And no, they’re not going to waive their fees. That’s how repo companies make their money. They did their job and now there’s a bill to be paid. Whatever they cannot recover of that sum from the auction of your car (and auction houses also charge a fee) they will sue you for as a civil recovery matter.

    Repossession is always a last step because it’s an expensive process and everyone loses except for the repo company and the auction house. 

    Sorry of all that sounds harsh but those are the cold facts: you’re effectively trying to shut the stable door long after the horse has bolted. Only in this case the stable itself is now on fire and the best you can hope for is to put the fire out as soon as you can to minimise the damage. That means arranging recovery of any of your possessions from the car and maximising its auction value by handing both keys to the repo company. And then by negotiating with the lender to make realistic proposals to repay as much as you can of what you still owe them.

  • Anonymous
    8 months ago

    You will have to pay all the fees and they will likely install a hidden GPS transponder.

  • Anonymous
    8 months ago

    They lied. Or the agent did not know what was going on.  Talk to the finance company and see if you can get your car back.  Do not bet the farm on it.  If the car was towed to the auction lot, you might as well say goodbye to your car. 

  • 8 months ago

    If the order was issued to the repo company, it's all over. It makes no difference what one said to you at any point. The moment ya deviate from the contract, it's done.

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