topic Re: Voluntary Repo - Need advice for an atypical situation in Auto Loans

Voluntary Repo - Need advice for an atypical situation

Anonymous — Fri, 05 Jun 2015 18:07:53 GMT

Hello everyone,

So this isn't your typical repo story

I had a 2014 VW Jetta that was on a lease, cosigned with my sister. I had full coverage (or so I was told to believe) - Anyways, I had let my brother borrow it for a date and he ended up being under the influence and crashing my car. I was under the assumption that when I got my car insurance that everything and anything would be covered, but alas, this was not.

VW has taken the car as a voluntary repo, as they say, and are going to sell it and then me and my sis (though I pay for it) will be responsible for the rest.

What I wanted to know is:

How will this effect our credit?

Is there anyway to show on our credit report the story so that it can hurt less or when I apply for anything that they see that it wasn't because I failed to pay (because I will continue to pay the car) but because of some other reason?

Any other advice?

I'm stumped and stuck in a horrible situation! Help!

Re: Voluntary Repo - Need advice for an atypical situation

ds3 — Fri, 05 Jun 2015 18:20:11 GMT

Call VW and explain it all to them. Ask them to not report it as a repo to the CRAs as long as you are still making the payments. Next time, make sure you get GAP insurance, and don't let drunks drive your car.

Re: Voluntary Repo - Need advice for an atypical situation

StartingOver10 — Sat, 06 Jun 2015 01:35:22 GMT

How did VW take it as a repo?

That only happens when payments aren't made. Did you stop making your payments after the accident expecting your insurance to pay for the loan? That isn't how insurance works. If you have had this situation happen recently and you are still making your monthly payments (on the unpaid portion after the insurance payment). then i don't see how VW can repo your vehicle at all. What is the timeline?

Re: Voluntary Repo - Need advice for an atypical situation

Anonymous — Sat, 06 Jun 2015 01:49:45 GMT

Atypical is right. I am a little confused. VW can't roll the amount due into your next lease?

Talk to VW and your dealer to find out what to do. Worst case (other than to sue your brother) is that you lease something else before the repo shows up on your credit. I think there is hope though. You should be able to settle the amount owed into another loan/lease as long as you are in good standing.

Just a note, VW has GAP built into their lease contract. But that only kicks in if the car is a total loss.

Re: Voluntary Repo - Need advice for an atypical situation

Creditaddict — Sat, 06 Jun 2015 15:02:19 GMT

like they took it without it being fixed from accident?

How bad was the accident?

how many payments are you behind currently?

Re: Voluntary Repo - Need advice for an atypical situation

Anonymous — Fri, 12 Jun 2015 18:55:29 GMT

@ds3:

I did explain everything to them but they said they couldn't do much...

And I did have GAP insurance - their leases automatically come with them.

Re: Voluntary Repo - Need advice for an atypical situation

Anonymous — Fri, 12 Jun 2015 18:55:04 GMT

@startingover10: They took it as a repo because they made an assessment of the damage and if it was worth it, they were going to sell it anyways and whatever it was sold for would go directly to the total amount of my loan. I just checked my credit and they closed my account and left on the comments "Transferred to recovery.
Voluntary repossession"

@carfinancepro: that option was never discussed....but my credit probably wouldn't allow it so i could have a $20,000 balance be added to another $15,000 lease. and the car was considered a total loss, but they said GAP only kicks in if the insurance only covers a small amount, which it didn't.

@creditaddict: yeah, they took it because they felt they could still sell it in the condition and then take whatever they get for it and deduct the amount owed. not sure about the other people, since my insurance took care of them, but my car was pretty bad in the front.

everyone, I'm NOT kidding when I say I was on top of my payments! I was NOT behind and throughout my lease, i probably only made 1 late payment that was ONLY 1 day late. I'm not lying when I say this was an atypical situation....

And, because of the closure, I saw -23 deducted

Re: Voluntary Repo - Need advice for an atypical situation

Anonymous — Mon, 22 Jun 2015 15:04:31 GMT

So I guess it's a lost cause and nothing will really fix it?

Re: Voluntary Repo - Need advice for an atypical situation

Creditaddict — Mon, 22 Jun 2015 15:11:41 GMT

So did sister not pay and keep full coverage insurance or did your insurance agent not explain something correctly... im still trying to figure out how this was not covered by insurance if you truly had full coverage?

Re: Voluntary Repo - Need advice for an atypical situation

6speed8 — Mon, 22 Jun 2015 15:16:13 GMT

I thought this is what GAP insurance was for so I'm a bit confused as to how this is turning into a "repo" situation. Could your insurance company not be paying out on the value of the car because your brother is not listed as a driver on your policy ?

Re: Voluntary Repo - Need advice for an atypical situation

Anonymous — Mon, 22 Jun 2015 15:16:17 GMT

There was a clause in the insurance agreement that didn't have anything to do with having full coverage, at least what California considers full coverage. see link below

link to their exclusions

as I said before, the car was never late with a payment, at least not more than a day or two.

Re: Voluntary Repo - Need advice for an atypical situation

Anonymous — Mon, 22 Jun 2015 15:17:30 GMT

i thought so too but after reading more about gap, i thought it was meant to cover only AFTER the insurance approves the claim and sends you the leasing company the money?

Re: Voluntary Repo - Need advice for an atypical situation

6speed8 — Mon, 22 Jun 2015 15:22:28 GMT

It's been 10 years since my one and only leased vehicle but I'm still at a loss with your situation. I thought your insurance covers the loss of the vehicle and the GAP insurance covers your contract liability - say there's 20 months left on the lease, GAP pays that off as well as the lost value of the vehicle. Am I wrong?

Re: Voluntary Repo - Need advice for an atypical situation

Anonymous — Mon, 22 Jun 2015 15:35:29 GMT

@6speed8: my insurance won't cover the loss due to the exclusions on the policy (drinking and driving) and vw gap won't kick in until my car insurance does, but its not going to, so it won't even bother kicking in...

vw gap booklet

@6speed8 wrote:
It's been 10 years since my one and only leased vehicle but I'm still at a loss with your situation. I thought your insurance covers the loss of the vehicle and the GAP insurance covers your contract liability - say there's 20 months left on the lease, GAP pays that off as well as the lost value of the vehicle. Am I wrong?

Re: Voluntary Repo - Need advice for an atypical situation

6speed8 — Mon, 22 Jun 2015 15:45:25 GMT

@Anonymous wrote:
@6speed8: my insurance won't cover the loss due to the exclusions on the policy (drinking and driving) and vw gap won't kick in until my car insurance does, but its not going to, so it won't even bother kicking in...
vw gap booklet
@6speed8 wrote:
It's been 10 years since my one and only leased vehicle but I'm still at a loss with your situation. I thought your insurance covers the loss of the vehicle and the GAP insurance covers your contract liability - say there's 20 months left on the lease, GAP pays that off as well as the lost value of the vehicle. Am I wrong?

I'm speculating with what you just wrote. If your insurance will not cover the "dui" situation and GAP will not kick in unless your insurance does, then VW is probably looking at the Jetta as a complete loss. Sounds like they're kinda doing you a favor by listing is as a "voluntary repo". They'll auction the car off same as any repo then send you a bill for the difference in the car's value. Mind you that most every lease is underwritten by the finance company so they're making out twice. Their own insurance will pay them the difference on the residual value AND send you a bill for the auction proceeds vs the value of the car. Sucks...