* Your credit score will drop significantly. A car repossession is one of the most damaging things you can do to your credit. It will typically cause your score to drop by at least 100 points, and it can even drop by more than 200 points.
* You will have difficulty getting approved for new credit. Lenders will be very reluctant to lend you money if you have a car repossession on your credit report. You may be required to pay a higher interest rate if you are able to get approved for a loan.
* You may be sued by the lender. The lender may sue you for the amount of money that you still owe on the car. If you do not pay the judgment, the lender may be able to garnish your wages or seize your assets.
Monetary responsibility after car repossession:
* You will still owe the lender the money that you borrowed for the car. Even though the lender has repossessed the car, you are still legally obligated to pay back the loan.
* You will be responsible for the costs of repossession. These costs can include towing fees, storage fees, and attorney fees.
* You may be responsible for any damage to the car. If the car is damaged during the repossession process, you may be held liable for the cost of repairs.
Car repossession is a serious financial problem. It can have a devastating impact on your credit and your ability to get approved for new credit. If you are in danger of having your car repossessed, you should contact your lender immediately to discuss your options.
