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Barrister
Barrister, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 33767
Experience:  Attorney with 15 years experience in various consumer protection areas
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Just curious as to how voluntary repo works

Customer Question

Just curious as to how voluntary repo works
Submitted: 1 year ago.
Category: Consumer Protection Law
Customer: replied 1 year ago.
I just bought a 2015 Nissan Sentra the first of this month and wife decides she no longer wants the car she wants something bigger.what is the best way for me to get out of this car and get her into something she likes most.i haven't even made the first payment yet.will I still be required to pay the full interest rate on the car if voluntarily give it back to the bank ?
Expert:  Barrister replied 1 year ago.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
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From a legal perspective, a voluntary repossession isn't really that different from an involuntary one with regard to the eventual outcome. About the only difference is that in a voluntary one, the borrower just drops off the car at the lender's location instead of the lender having to send out a repo company to repossess the vehicle from some other location.
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For credit purposes, there is no difference and for liability for any deficiency once the vehicle is sold, there is no difference. It would end up with the borrower owing a bit less in total, because the lender wouldn't have to pay a repo company to come get the vehicle.
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thanks
Barrister
Customer: replied 1 year ago.
Am I required to pay the amount in full with interest or just the cash price and what little interest has been added in the short time I have owned the car
Expert:  Barrister replied 1 year ago.
The way it works is that the creditor will sell the car at a car auction to the highest bidder, then they can some after the debtor for any deficiency between what the car sells for and what was owed on the loan.
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So whatever price you agreed to pay for the vehicle on the sales contract is what they would be looking to get from you minus any auction price.
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In a situation like this, it is MUCH better to simply sell it privately for a couple thousand loss than let it go to a repo auction where it will sell for 65-70% of its value. So if you give someone who wants the vehicle a deal on it, you will save yourself money in the long run.
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thanks
Barrister