I have a 2007 e550 mercedes benz and can no longer afford my vehicle and has decided to give up this month payment and just surrender to Chase Auto. I’ve been trying to sell in the market for 3 month now and still no one is interested. What will happen next? I know that they would auction off the car but am I responsible for the deficiency? if they do come after me, should I file for bankruptcy? thank you.
Originally posted 2009-04-20 08:25:09.
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what does your loan or lease say? you did READ and keep the papers, didn’t you?
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yes — you’re responsible for the deficiency.
You will be responsible for any deficiency between what the car was sold for at auction and what you owe. If there is any possible way whatsoever, sell the car yourself and pay off the balance. If you haven’t been able to sell it you’re probably asking for too much. You should have no problem whatsoever selling it privately at close to wholesale which I suspect will be well above the auction price. If you have any other assets consider selling them. Check what similar cars are selling for at auction. It is likely you will take a big hit if the car gets auctioned. A voluntary repossession which is what you’re planning to do still counts as a repossession. Bankruptcy should only be considered as a last resort. Either one counts on your record for 7 years and may cause problems for you the entire time. You will have difficulty obtaining credit and will pay ridiculous interest rates on the credit you can obtain. You will pay higher insurance premiums. Some employers check credit before making a job offer so it could cost you a job.
im not sure about that