answersLogoWhite

0


Best Answer

The "voluntary repossession" allows the purchaser who has defaulted the loan to avoid having to pay a repossession fee of a few to several hundred dollars. That is the ONLY advantage to the purchaser.

The dealership has the vehicle back in it's possession and can unload it at an auction without having to pay a repossession fee to a repossession agent (because the purchaser "voluntarily" surrendered the vehicle).

Once a car is repossessed, voluntary or not, it is (at least in most states) sent to an auction to be sold and the proceeds applied to the outstanding debt of the borrower.

Usually, there are specialized auction houses dealing solely, or nearly solely with repossessed vehicles and the vehicles NEVER (that I'm aware of) bring anywhere close to the amount of the loan.

This is true because first, it is (1) a dealer only wholesale auction, (2) the vehicle is a "repo" and (3) the "retail" price previously paid by the purchaser/borrower is an amount greatly inflated over and above the actual "wholesale value" of the vehicle.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why do car dealerships offer voluntary repos if you still have to pay?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Where can you buy a used acura online with warranty?

Used cars are available from many dealerships and individuals on the internet. Most of the dealerships offer some limited warrenty. If buying from an indvidual, it is important to determine if the factory warrenty would still be valid.


Can you still finance a car with two repossessions after chapter 7?

With enogh down payment, you can get a car with 10 repos. The more repos, the more DP needed. probably get a higher interest rate too.


Which Utah dealerships offer the lowest rates on auto leasing?

Currently Toyota is offering low rate leases in Utah. Generally many auto manufacturer's are still reluctant to offer low lease rates due to the tight credit market.


If you let the lender keep your car and they resell it are you still responsible for the remaining balance?

Read your contract. In 99% of the repos , YES, you still owe the balance due.


Is Volvo better than Saab?

yes, because it is still in business and still has dealerships and service departments.


Is it better to do a voluntary repossession?

It will save you some money BUT you will still have a repo on your CR.


If a car was voluntary repossessed and the cosigner was not notified is the cosigner still responsible?

Yes. If you signed the loan, you are still legally responsible for it.


If you request a voluntary dismissal can a debt listed in the bankruptcy still be paid off?

Yes.


Are there any car dealerships that still sale pontiacs brand new?

There are no newer models of Pontiac being produced anymore. Some dealerships may still have some newer models from last year or so that have not been sold, but as far as future models, no dealership sales any.


If you voluntarily let your car be repossessed by the lender do you still have to pay on the loan?

Yes! It will still be listed on your credit report as a voluntary return and you will still be responsible for the cost


What models of cars are sold at Volvo dealerships?

Volvo offers a full line of cars and sedans. They have a wide range of mid size and full size models. They also are one of the few firms to still offer a station wagon. They do not sell minivans or pick up trucks.


Does ford still offer the 7.3 powerstroke?

no they dont offer them now