If you don't have a job and your car gets repossessed do you still have to pay for it when you didn't have a job when you first got the car and no credit was checked?

Charlotte Emard asked a question: If you don't have a job and your car gets repossessed do you still have to pay for it when you didn't have a job when you first got the car and no credit was checked?
Asked By: Charlotte Emard
Date created: Mon, Feb 8, 2021 9:36 PM



Those who are looking for an answer to the question «If you don't have a job and your car gets repossessed do you still have to pay for it when you didn't have a job when you first got the car and no credit was checked?» often ask the following questions:

✔️ What happens when your car gets repossessed while loan?

A repossession will show up on your credit report under “current manner of payment” for the loan, according to TransUnion Credit Report User Guide. A code 01 means paid as agreed, while code 08 indicates a repossession, and 8A a voluntary repossession.

✔️ What gets checked in a credit check?

Your credit check will show any accounts where you have taken out credit. This includes credit cards, loans, mortgages, and any credit agreements you have in place, such as anything you've bought on finance, or utility debts. It may include any closed credit accounts.

✔️ Why does your credit score go down when checked?

When Checking Credit does not Hurt Scores. While it might seem that checking your credit score lowers it, coincidence is a more likely culprit. Ratings fluctuate every day as lenders send updated data to the bureaus, so you have a 50% chance of seeing a drop each time you look at a new version of your report.

10 other answers

Read your loan agreement.Yes you will have to pay for balance of the loan after your vehicle is sold or auctioned.Your current or past job status makes no difference to the bank.

If you don't have a job and your car gets repossessed do you still have to pay for it when you didn't have a job when you first got the car and no credit was checked? Wiki User ∙ 2005-09-22 13:02:42

If your lender sells your car, the sales proceeds go toward your loan balance. In many cases, the car sells for less than you owe, so your loan is still not paid off. The amount you owe after the vehicle sells is called a deficiency. 1 Added costs: In addition to your loan balance, you also have to pay for costs related to repossession.

Say you owe $12,000 on an auto loan before defaulting on the payments. The lender repossesses the car and sells it at auction for $3,500. The lender incurs repossession and auction fees of $150. You would owe a deficiency of $8,350 ($12,000 - $3,500 - $150 = $8,350.). In most states, the lender can try to collect the deficiency from you.

If you can’t reach a deal with your lender, you should prepare to have the car repossessed by removing all personal items from your car, as repo companies can take your car at any time — whether the car is parked in front of your home, at work or at the grocery store.

While many lenders have begun to voluntarily forego repossessions during the pandemic, if you get behind on your payments, your lender still could repossess your car — sometimes without warning. If your car gets repossessed, check your state’s laws to see what options you might have to buy it back or get any personal property left in the car.

Having your car repossessed doesn't get you off the hook for your obligation to pay the entire balance of the loan. If the proceeds from the sale of the vehicle aren't enough to cover the balance of your loan, the remaining portion is called the deficiency balance. In most states, your lender can sue you to collect this deficiency.

Updated April 17, 2021. Creditors can attempt to repossess your vehicle if you default on your loan. 1  If you are on the verge of repossession, your first instinct might be to try to hide your car from the repo man. The reasoning is pretty simple: if they can't find it, they can't repossess it. However, this tactic is unlikely to work and ...

Redeeming the Car. In most states, you have to pay off the entire loan to get your car back after repossession, called "redeeming" the car. The balance you would need to pay to redeem the vehicle might include extra fees and charges, including repossession and storage fees, and even attorneys' fees.

Chances are high you'll have to pay a deficiency balance on your repossessed vehicle. The deficiency balance is the difference between the amount your vehicle sells for and the amount you still owe on the auto loan. Thus, you'll be paying on a vehicle you no longer own.

Your Answer

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