[maeappel]

My question involves an auto loan or repossession in the State of: California.

I would like to voluntarily repo my vehicle. I moved to San Francisco recently and have no need for it nor can I really afford the payments (700 per month for no reason). I'm also about 5,000 upside down on it...needless to say I can't sell it on my own and don't want to keep wasting money on a depreciating asset that is parked 40 miles away due to the lack of parking in the city. How will this affect me? How long will it take them to repo? I don't really want to default on the payments because they'll just add that amount to the amount I owe after they sell it (I'm sure). Can I just give it back? I sent customer service an email but they haven't responded yet (Household). Can they garnish my wages or take money out of my checking account? I'm really not that worried about the credit issues as I will get the outstanding debt paid off in due time. Credit isn't everything these days and I don't plan on financing anything any time soon. Please help!

[Mr. Knowitall]

You'll end up with trashed credit and a huge deficiency judgment against you. Probably more like $10-12,000 instead of the $5,000 you would have to cover if you sold the car and paid off the loan. And yes, you should expect that they will try to collect the money you owe to them.

[maeappel]

But can they garnish my wages or will they just put a lien on me? How do I sell it if I still owe money? In your experience will the lender be helpful if I discuss my situation with them?

[texone]

But can they garnish my wages or will they just put a lien on me? How do I sell it if I still owe money? In your experience will the lender be helpful if I discuss my situation with them?

It's possible, if you contact them, that you might be able to work out a payment arrangement or loan modification, that is, if you want to keep the car.

If you decide to sell you car yourself then you'd have to make up the difference between what you get for the car and what you owe. It may well be possible that you and the lender work out a payment arrangement for the outstanding balance.

[maeappel]

What do you know about CA laws Texone? What if I just let them repo it?

[seniorjudge]

What do you know about CA laws Texone? What if I just let them repo it?

You borrowed money.

You had collateral (the vehicle).

If you give the vehicle back, that does not mean you don't owe the money!

So yeah...they can get a judgment (lien) against you and garnish your wages, among other things.