Overhaulin'

If I let the title loan company repossess my car, do I have to pay them still?

Money is SO tight right now that I made the decision to take out a title loan on my 2nd vehicle with no intention of paying in back. I know they will repossess my vehicle and at this point I dont care because I know I cant pay it back & the vehicle is in bad shape. Nonetheless they loaned me $600. I then hear from a relative that if I let them repo my car I am not necessarily in the clear as they can make me pay the difference if they dont sell the car for what the loan amount was. Is this true and if so, why was none of that mentioned or why can I not find anything about that in my paperwork? Am i missing something? I dont want the car and dont want to owe them any more money if I let them repo it.

Public Comments

1. They will take your car. Sell it. If there is any money left over after the sale, you will get the money. Otherwise, if there is not enough money, you will still owe them the difference.
2. It's true,they will sell and if the car doesn't sell for what you owed on it,you'll have to pay the difference. You may be better off selling the car and paying the loan off.saves your credit and you might make enough to have something left over.
3. ~~Your relative told you correctly. You will be held responsible for all the repo charges (towing, storing, etc), as well as the difference of what they actually sell the car for and the balance you owe on it. It does not necessarily have to be in the paper work. They loaned you the car until you paid the loan, you are responsible for the entire loan amount. Repossessing costs will also be passed on to you.~~
4. Not very bright are ya. Its a crime,yes a crime. you intentionally are defrauding on a loan.The car is collateral.If the sale of the car does not repay monies loaned to you.Then legally you can be sued for the amount still owed.Period.it could end up costing you a lot more if you refuse to take care of the problem.Let it get to the point ,where you don,t make an effort to pay back the loan. And you can even have your pay check garnished to pay back the amount.This is no bullshit.My good friend works in the industry,and we are looking at this right now,. Advice Pay it back.Or hope like hell that they can get back there monies. plus interest that will accrue.
5. Yes you will owe the difference of what car sold at auction and you loan balance. If the sale does not yield enough to pay off loan, you owe difference.