Behind in car payments?

if my car is repossesed and they sell it for less than what i owe how does it work. i mean the original loan was for an amount financed of12400 but after all the payments are made i will have paid back 21700. if they repo the car and sell it for 8000 and do they take that off the amount that would have been paid over the entire year of the loan or off what the payoff would be the day they repoed it

Behind in car payments?

Lets say they sell the vehicle for $A.

Your loan balance (aka principle) is $B. Does not matter the amount you have paid to date.

They charge you penalties, late fees, repo costs, etc of $C.

You still have to pay them: $B-$A+$C ; which will always be a lot more than you think it should be.

The total of the payments and the amount financed are meaningless.

Behind in car payments?

They take the difference off of the balance you still owe them, plus the towing, storage fees and the fees it cost them to repo the car.

Behind in car payments?

NIGEL M provided you with a good answer, the only area of concern I can add is if there is another way without a repo ? as your credit will be blemished for years to come.

If you care to share details contact me through this link http://www.usedcartips.org/CREDI.html if there is a better way I will know

Behind in car payments?

Spray paint your car flat black, and park it somewhere off the road a few blocks away from your house. Leave to go to work, and come home in different routes. If need be, buy a black ninja costume, and sneak through your chimney like santa. That should keep the repo man guessing.