Vehicle Repo Aftermath

[Anonymous]

Hi there,
I'm in desperate need of some advice. My vehicle was repossessed Friday. I have a 9500 loan to satisfy on it still, but personally it would be better for me to wait for it to sell at auction and pay the ~3000 difference between the value of the car and the loan. I have a co-signer for this loan and need to make the best choice to repair her credit quickly, or reverse the repo on it even? Is that possible if the entire loan balance is paid within a certain amount of time? Would there be a benefit to my co-signer's credit if the loan is paid in full now versus paying the difference when it goes to auction?
Please help, headed to the credit union asap if paying in full is the best choice.

[sccredit]

Redeeming the car and paying off would be substantially better for your co-signer.  

[Anonymous]

Thank you for your input. I've heard a repossession will instantly take your credit down 100 points. Is that true and are there other repercussions?

[Anonymous]

The credit union may ask for the amount owed in full.

They may not want to extend credit to you again. So you may need to pay in full to get the car back.

Issue is getting another loan to get the car out with bad credit and with negative equity

If it is a local credit union beat chances may be to go in person and ask nicely and keep going up the chain until someone says yes or they kick you out

[coreysw12]

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@Anonymous wrote:
Thank you for your input. I've heard a repossession will instantly take your credit down 100 points. Is that true and are there other repercussions?

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"100 points" is just a ballpark figure. The more accurate answer is that it will drop your score anywhere from 0 to 300 points. It all depends on your (and her) overall credit picture.

For example, if your credit is currently fairly poor (400's or 500's), then the repo probably won't change your score much, if at all. Meanwhile, if your co-signer's credit is in the 700's or 800's, then the repo could easily tank her score by 250 points immediately.

Honestly, if the car already got repo'd, then that means the payments are at least 90 days overdue, which means your (and her) credit has already suffered significantly. So she may not see a huge point drop from the repo, on account of the fact that her score has already tanked from the late payments leading up to it.

Your best bet is to get this paid and get the car back before the repo hits your reports. And then cry, beg, and plead with the bank to reduce or delete the late payment history from your reports, which there's no guarantee they will, but it's worth a try.