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My car is about to be repoed. It was mentioned that the car will possibly be sold at auction. 8000.00 is what is owed on the car, if it is sold for 5000.00 am I bound by law to pay that difference of 3000.00.

11 Comments »

1. 

   yes,the bank or lending company will come after you for the unpaid balance.try explaining to the bank that you have some sort of financial hardship and see if they can work something out?

   Comment by Bolt Thrower — January 5, 2011 @ 6:37 pm

2. 

   Yes. In addition to the $3,000 difference, you will also be liable for the repossession fees, and auction fees.

   Comment by lj1 — January 5, 2011 @ 6:37 pm

3. 

   Just because they sell your car doesn’t mean the note you signed is invalid lol. They paid that money to get the car for you, so you have to pay them back.

   Comment by Lana — January 5, 2011 @ 6:37 pm

4. 

   Yes you are legally responsible to pay the difference and any fees from the repossession company. They also expect the payment ASAP

   Comment by Johnny P — January 5, 2011 @ 6:37 pm

5. 

   Yes, in almost every state in the US.

   Comment by WRG — January 5, 2011 @ 6:37 pm

6. 

   Simply put YES

   Comment by texan1950 — January 5, 2011 @ 6:37 pm

7. 

   Most likely you will be liable to pay the difference between what the car was sold for at auction and how much you owed on the car. you will also be responsable for any repo and auction fees. Auction fees could be more than 10 % of what the car sells for.

   Comment by wolfman — January 5, 2011 @ 6:37 pm

8. 

   Yes. You signed a note promising to pay $8,000. If it only sells for $5,000, you need to make up the difference.

   Comment by Daisy — January 5, 2011 @ 6:37 pm

9. 

   All signs point to yes… any time a lender, especially a bank or the such, loans money to buy a car, you are then obligated to pay that loan. If the car was from a "buy here pay here" establishment, you would not always be obligated, but can sometimes be held accountable even in those instances. Anything left on the note that isn’t covered by the sale of the vehicle through auction, plus any fees the lender incurs from the repossession, etc., you will also be liable for. Sorry for the news, but it’s the naked truth of car buying… once you sign the note, there’s no going back beyond bankruptcy at times…

   Comment by Jimmy Wright — January 5, 2011 @ 6:37 pm

10. 

    It depends on the laws in your state. You may be liable for the rest.

    Comment by Louis G — January 5, 2011 @ 6:37 pm

11. 

    If it was financed by a recourse loan, yes.

    Comment by Obamavenger — January 5, 2011 @ 6:37 pm

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