how does reposession of a car affect you beside your credit ratings?

Public Comments

1. It can result in you owing several thousand dollars for a vehicle you no longer have. The lender will sell the vehicle at auction and you will be responsible for the balance between what they sell it for and what you owed them at the time of repossession plus all fees for repossession, storage, reconditioning, towing, lawyers and interest. If you do not pay, they can take you to court and get a judgment. At that point they can attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like cars, boats, land and homes.
2. Lots of people think that when they get their car repossessed the headache is over, this is not correct. Your car is taken to an auction where it will be sold to the highest bidder, usually a deeply discounted price. The balance on your car note will be reduced by this amount, but you will still be responsible for the remainder. Say you owe $20 , at the auction it sells for $12 you will still owe $8. You would want to sell it before you let the bank take it.