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My Car Was Repossessed. Do I Have to Pay The Entire Loan Back? – Barbara

“Dear Steve,

My car was repossessed and the lender told me I will need to pay the entire sale price plus fees occurred and my pass due fees. I live in Georgia and I need to know is he correct for doing this and giving me only 10 days to come up with $4000 instead of $600

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Barbara”

Dear Barbara,

Generally you would be responsible for the difference between what the vehicle would sell for at auction minus the balance due on the loan, plus repo, court, and storage fees.

When a vehicle sells at auction it is usually for significantly less than market value and leaves people owing a huge amount due. I’m wondering if this is what the lender was trying to say?

If you have any doubts about Georgia law then you’d need to contact an attorney licensed in Georgia for specific legal advice.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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