Don't Ever Do A Voluntary Repo! - Lehto's Law Ep. 47
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- Опубліковано 13 лип 2024
- Why you don't ever want to do a voluntary repossession with something you have financed through a lender. Especially with cars, trucks, RVs and boats. There is a podcast of this video: / dont-ever-do-a-volunta...
@stevelehto
www.lehtoslaw.com - Авто та транспорт
18:26 isn't that voluntary repo?
Yes. Preceding that, I said "If worse comes to worst . . ." and I am clearly saying what to do if you cannot do any of the things I described previously. If I had titled the video, "Don't Ever Do A Voluntary Repo If You Can Avoid It, But If You Can't Avoid It, Then Here Is What To Do," the title would have been too long.
I realize this is an old video. I just stumbled across this. I wish i would have known this years ago when i was a teenager. I did exactly what you said not to do and you are absolutely correct about what they do. I was able to finally settle my judgement and rebuild my credit but people dont realize how difficult that really is. Great information. I hope and wish more people knew this stuff.
@@stevelehto Actually a more meaningful title would have been: When To Do A Voluntary Repo
I've been there and should I have known before I opt for voluntary repo
BobGed The “Title Police” of “Hindsight East Bumfug have spoken! Get a new hobby!
Funny how they repo cars so quickly just so the bank can lose a lot of money on it. In a lot of situations they would be better off working with the customer on it.
my son purchased a used car and only had 4 months when he lost his job. He turned the car in. The dealership was great about it. They redid his paperwork, changed it to a 4 month lease and sent him on his way, No dings on his credit. What an awesome way to do business! (They did end up with 4 new tires from the deal. )
Purple Ducklette same here.
Thanks for this. That sounds like a sweet deal. Wish all dealerships were this nice though
They made money from the downpayment and in four months the car more than likely lost minimal value so they helped him and helped themselves
I didn't pay my church's exorcist bill and you guessed it.. I was repossessed. Thank you for the video 🤓
1) remove any sentimental feelings towards the car.
2) forget about the morality of paying your debts. The bank doesn't care about you. Same for the car salesman, dealership, repo man, etc. You are just a number and a means to make their profit. Without consumer protections they'd lock you in a debtors prison until you died or paid.
3) research your state's laws regarding foreclosures, repossessions, wage garnishment, levies, liens, and civil court judgements.
4) crunch some numbers and leave your feelings and guilt out of it. Forget about what anybody else thinks about it. If bankruptcy is the only way out, do it. Don't feel bad. It happens. There are sure some lessons that could be learned to prevent it again.
5) a car is a means of conveyance. Allowing it to become anything more costs money.
I did a voluntary repo during my divorce. I called the lender and told them what was going on with my divorce and they came and got it and auctioned it for more than i owed them and they sent me money that i use on some legal fees. And the lender listed it as paid in full on my credit report.
That's the kind of business I like to see, businesses helping out consumers, instead of taking advantage of them, because they know life has pitfalls.
But that's rare
I can honestly say i cannot wait for them to come repo my SUV. I filed chp. 7 bankruptcy and while it was going on my vehicle went to crap, blown engine seal, transmission going, rotors need replacement, heater core and a lot more. I just got a letter from the bankruptcy court saying they approved mine and my wifes case and I am waiting for the official paper saying the case is closed. I have my new car getting delivered Friday and my score is up 120+ points already
Hi, did it work out for you that way because the car was a lemon?
I had a car repossessed, I was maybe 2-3 payments behind, I called several times, and I was able to catch up on the payments, I sent them a check, it cleared, and 2 weeks later they still repossessed it. The lender says, sorry we already put the repo order in, but your payment will be deducted from the balance, previously they said once I was caught up on the payments they wouldn't do that.
I was able to go and get personal items out of the car. Some time went by, I didn't get any correspondence from the lender, more time goes by, and I get a settlement check in the mail, It was around $700 I don't remember the exact amount, but it was from a class action lawsuit against the lender and aggressive repossession policies. As far as I knew it was resolved.
Somehow I am getting letters from a debt collector for what they say I owe on the car almost a decade later. They decide to sue me in small claims court, I file an answer, I show up, they don't. I guess they hoped I wouldn't and most time the judge will default the judgement to them. 2 months later they sue again, I repeat the process, they don't show up, I ask the Judge to dismiss with prejudice, she makes a note of the request, and says if they do this again, they will. After the second time they didn't show up, I didn't receive anything from the debt collector again, it wasn't on my credit report.
Back then I think some lenders decided they could make more money on a repo, this one got too greedy. Somehow the debt collector bought a debt that no longer existed and was trying to intimidate me into paying it.
I remember one of my college professors telling us to never buy a new car much less finance any car because the depreciation is so high that as soon as you sign a loan agreement it's already worth less than the amount you owe on it. If the car gets totaled in a wreck the insurance will only pay market value to the lender and you will still owe the balance and have nothing to purchase another car with. Buying cars on credit is a trap for young people and poor people that plays on their vanity. Paying interest on cars and high full coverage insurance keeps people poor or in debt.
Car devalues yes. Some quicker than others. Now, it's recommended you invest in gap insurance. Whatever your insurance company does not cover the gap insurance will pay. Just don't get it from the dealer. They will rape you. lol! Shop around for it.
A word of warning to people that are behind on their car payments. It would behoove you to remove personal property from the car if you are behind. Its only a matter of time before they will repo. Granted you may still get your personal property returned to you but I would not chance it. Impound yards are not always the most secure places.
Yes It would be a good video if you could find an honest impound lot attendant,Who would open up and tell you the stories that he knows. I met one down in Elko Nevada in 2003, got a ticket. the phone number was put on top the ticket by the city police (if I needed any assistance call this number) I called up the number and it says Elko impound lot. I was working construction, $6,000 worth of industrial tools in my van. Was there out of state from Wyoming to renovate a historical hotel, that burnt down. I'm talking to the impound lot attendant, told him what I had in my van. and he told me fill that thing up and get the hell out of Nevada. I asked him why he said if it gets impounded here every damn tool be missing within 24 hours, ask me why are you telling me this he said I'm moving to California getting married to my girlfriend, I just want to clean my conscience some. I told him thanks man I appreciate the heads-up I filled up and I got the hell out of the Nevada, sent the paid ticket in...
@@daleslover2771 Wow. Thanks for sharing your experience. They need to start doing sting operations on these businesses. Much like a bait car for car thieves. Have a vehicle set up with hidden surveillance/microphones etc.
Even better do not ever ever get a loan especially to buy a car. Do what you can to afford the car that you need and not the car that you want. Pay cash for the car. This will save you a ton in the long run on interest you will have extra money to save to buy the car you want later (again with cash) and never have to owe anyone. Remember to borrower is a slave to the lender!
Take the car to Detroit and wait for it to get stolen.😀
Interesting approach. I've had three (potential) repos. The first one I drove to the bank, dropped off the truck (and the keys), got a lawyer, and paid the "amount due," (around $3600 - it was a lot back then). The lawyer was pretty sharp and earned his fee with a single phone call. The letter I presented to him came from the bank's lawyer, and it stated the "amount due" in order to "settle." My lawyer said to the banker, I'm presenting you the amount you demand. They complained about attorney and other fees, but he stood on what the note demanded. The bank accepted it and there were no more issues.
The downside of that one was that I'd just been laid-off from a job (a very nice job), and I used funds from employee profit sharing and savings to pay off this debt. It was a painful thing to do, when it would be nicer to have that money to pay rent and buy groceries.
The second one was a boat - same job, same layoff. I found a buyer for the boat and got the bank to take back another loan for the balance - they agreed and I paid that one over time. It still cost me around $2,000.
The last time, it was a beautiful little Camaro - Z28. I bought it for $14,000 and when they finished at the auction the bank only got $7,000 for it. I complained about that - it was only a year older.
In the last case, I didn't care about the credit hit (but I did care about a judgement), and the bank's lawyer wouldn't make a deal with me. I said, "If you don't make a deal with me, you won't get a dime." He said, with the bank's rep standing there, practically in shock, "We'll take our chances." The next month I declared bankruptcy and the case was dismissed.
Every one of these incidents I had lost a job, and had no way of paying. My last real job, my (former) boss suggested that I get a new car (now that I had a new job). I've made that mistake before.... He didn't seem to like the old junky-looking pickup truck I was driving (I don't buy new cars anymore). I said, "I'll buy a new car when I have the cash for it." These days, I don't go anywhere near new cars. There are plenty of decent used cars you can buy at near-auction prices, and I only buy for cash.
I've learned my lessons, but they've been hard. I lost a lot of money to banks and car salesmen. It's best to stay away from banks and new cars (trucks, and boats) altogether. Since then, I've bought and sold several cars, trucks and boats - all with cash.
I don't have any new cars, trucks or boats, but if you lose your job again, and all you need to pay for is rent and groceries, life is good.
Robert Mertens z
I've heard more than a couple of people who were surprised to find that even after their car was repo'd, they still owed the bank for the balance the bank couldn't recover from auction or sale.
That is true. If they cannot get the amount you owed plus repo fee and any other fees attached this they will go after you for the balance.
You can also contact the bank and explain the situation. Get an extension on the loan, get the interest frozen and settle on a new payment plan you can afford.
Any reasonable lender will work with you to ensure they eventually get their money back.
Chapter 7 solves it all...2 years later excellent credit and still get loans
They changed the law in 2005 you still can file but the lawyers gets alot more money.
my buddy filed and 3 months later he was getting all kinds of credit offers...they are vultures..
Hell yeah!!!
No doubt. Mine got involuntarily repo'd. Sold at auction for $3k less than I owed, and started hounding me for the difference. Managed to avoid contact with them for over 7 years so it dropped off my credit. Young and dumb, man.
Bought a 1970 Nova in 1972, nice used car. 3 Year Loan, I paid 2300.00 plus interest. I paid on it for 2 yrs and 6 months, I was riding in a car and got T-boned by a Doctor going to his fathers funeral with wife and 3 small kids, he drove a Large Cadillac, I was in a VW Bug. My arm got busted between the shoulder and the elbow into 30 pieces, by the drivers head slamming into it. So now Im out of work, and I had a good job, I was 19. I called the finance company and explained the situation. They told me dont worry about it and they would just stretch out the payments, how nice of them I thought. Well as you already guessed, they repo the car 2 months later. I said O-well they all lie, what could I expect. So I called my Brother to get a ride to the bone doctor, he asked what happened to your car. I explained best I could. He said didn't you buy that cheap policy when you bought it, in case you were ever hurt and could not work, I said I have no Idea. So I said let me check the contract. Sure enough I had bought the Ins when I bought the car, WOW, I was elated. This was 2 days after they grabbed it. I went to the bank and they showed me to this guys office, and I explained the situation, my arm was in a cast from my shoulder to my finger tips. He looked at me from behind his oversized desk. and said " Sorry We Cant be responsible to file a claim for you", and we cant return the car. Now normally Im a easy going guy, someone you can laugh and have a beer with. Im not sure what happened, his office was on the 11th floor, and he sat with his back to the large plate glass window. I got up and chased this guy around his desk determined to throw him out the window to see if he could fly like Superman, Im 6ft 7 he was 5ft4, He weighed 300 Im sure, I came in at 185. I was escorted out of the Bank by Toy Cops. I never got my car back . And to put a cap on this long ass story, my Lawyer settled all his cases quickly due to losing his son from cancer, for pennies on the dollar. At the time I was making 160 a day. I was out of work because of the accident for almost 2 years, I lost everything except my topless dancer girlfriend, what a angel. So The doctor and hospital got payed 30,000 total ( forgot to explain, I almost lost my arm), I lost 263 days of work, totaling 42,080 in wages, pain and suffering was off the charts literally. In the end I received, if you can believe a check for 2,000 dollars. I only know the story because I happen to run into the lawyer years later in a high end bar, he was very drunk, and explained what happened. He said Sorry.
Now the up side.....My arm only ended up with a slight default, and my golf game improved over time, alot.
It was only money and money cant ruin your life, only you can do that. I just love to type, sorry.
Now thats my rep o story, the car had a 327 4 speed, cragar mags , Bahama Blue, hope somebody enjoyed it.
Often wonder what would of happened if I would of caught that fat ass slob, I wanted to use his weight to launch his body out the window. Im guessing thankfully I didnt catch him, for him and me.
My Lawyer sat on the Attorney Oversight Panel in the State of Florida for many Years. What could go wrong with Credentials like that behind him. Everything Brother Everything. Trust no one even your Lawyer.
Thank you Mrs Weiss for making me promise to learn how to type, 55 years ago, Im getting there slowly !
Shit life happens man people lose jobs get divorced all kinds of shit happens hell if you can't afford to keep it then let the bank have it Life goes on it's not the end of the world
We scrimped, and saved to keep and pay off our truck. The day we paid it off was in person at the buy here, pay here lot. we took the title to the tag agency in town and a week later we had a verified clear lien free title in our important papers file. the truck is 14 years old, we went from full coverage to a low enough insurance payment to insure our other paid off car that needed repair. We have 2 paid off cars and our mechanic is our best friend. The level of freedom is wonderful.
This is why I don't ever finance a vehicle... It's the biggest waste of money ever. $15,000 for a asset that never increases in value unless you go out and bury it in the desert somewhere and have someone dig it back up 100 years later... And that's only if it was a popular car during its time...
I run down to craigslist, find a $500-$1000 vehicle that runs/doesn't run, throw $500 at it, and run it till it requires another $500 for a motor or something. Trash it, get $50-$100 back from the recyclers... Wash, rinse, repeat...
Seriously, WHY would I want to buy a car just to become a nice money generator for a bank????
sportster1988 The huge difference between the two is a house or land can and usually do appreciate. That car will most likely depreciate over time, and a relitively short time. you can usually make additional principal payments and refinance to reduce the amount over the purchase price you're paying. imo, auto loans are the biggest waste but I say that with an asterisk. I've bought cars cash and I've financed. The last car I financed was a $25k car and it cost me less than $500 in interest over the lenght of the loan (don't remember the exact number but I want to say it was in the $250 range). $500 to borrow $25k sounds like a good price to me. with that said, I was more motivated to pay off the car. we paid that 3 year loan off in just about 2 years. took us almost 4 years to save a similar amount to buy one of our current cars with cash.
@@stinkycheese804 His profession has nothing to do with it. A lot of people choose to buy old cars and spend the money elsewhere. People who are handy can make a $500 car reliable. I have a 800+ credit rating and six figure income, pay extra for mortgage every month, but I drive 10+ year old cars. (Not $500, but $4000-5000). I'd drive older stuff but I care about cars, just not enough to buy too much car.
This is why I just pay cash for a used car. No payments.
My gf works in collections, I hear so many stories of folks buying new cars for say 35k and a year later the car is worth 18k and the person with the loan still owes 25k they dont get it. I feel there needs to be more education on how loans and depreciation work before you buy a new car. I mean daily she gets calls from folks who dont understand how they can owe more than the car is worth a year after buying new.
"But it gets worse!" Great advice for the financially ignorant. One of the first rules of money: Never go into debt...esp. for a depreciating "asset". Never buy from a dealer. Buy what you can pay cash for from a private owner and PAY to have a good mechanic do a PPI before shelling out a single dollar.
When I was buying a car, basically everyone around me told me to finance it through a bank. Car was 10 k, the banks wanted me to repay 13 k over a few years, all the while I had around 12 k sitting in my bank account. One bank told me to take my time, if I decide to get a loan from them, they can give me the money the next day. So I pay my car amd decided to take up the bank on their offer, once something happens that makes me need the money
Also, I hate owing anyone anything
I’m not sure about the “never buy from a dealer”, but a) understand they are there to make a profit and b) that salesperson is NOT your friend. As for the other part I am 100% with you….buy only what you can afford in CASH and I would go one step further and say don’t buy a new car.
I actually beat them on this. I walked from a new vehicle, and didn’t have to pay any more money. The truck was for a business, 2 months old the transmission went. Took it in for repairs, they failed to repair the truck in 4 months. I gave them the keys, no sorry throw the keys at them, when I found out chev still hadn’t started the replacement part production and it was estimated that it would be at least another 3 months before I would get my truck back. Went to court they had to refund all my money, as well as eat the truck. My argument was it was a company truck I couldn’t continue to make payments if I couldn’t use the truck to make money to make the payments.
what state and year?
You telling me it's not a smart idea to finance a Hellcat for 144 months?
Well that's just ridiculous Mr. Law man
I literally received an ad in the mail for a Lamborghini for 144 months
I actually did a voluntary repo and because the dealer broke the law. I didn't end up owing anything( they used fraudulent come on to sell the vehicle. New York State 1983 or 84 Toyota dealers)
I had another car repo in 2001 (lost job hotel industry in Hawaii) the tow truck damaged the car in front of my eyes and camera. Luckily a good friend of mine that is a well regarded real estate and business owner witnessed the incident.
The insurance company for the tow operator ended up totalling the car so I owed nothing. Must be the luck of the Irish✨🌈
Lost my Chevy Silverado years back after the tech bust. Amazingly, it sold very well at auction and the bank cut ME a check for about $750. Could have knocked me over with a feather. Gift horse and all that - but I really needed that cash!!!
Obviously what i get from this is what I've been thinking my entire life, don't ever buy a car from any dealership esp from a used car dealership! You get ripped off the moment you sign those papers! Thinking of buying a new car, well the value of that car depreciates once you drive it off the car lot and your stuck paying full price of that vehicle! The entire automotive sales system is totally based on GREED! Best advice I've ever heard, " take a mechanic with you and buy a used car from a private party. " and do your research on which car your interested in.
As a banker, I would have jumped at the chance to have the customer sell the vehicle and I would also have offered to refinance the remainder of the loan. If the bank doesn't offer it, then ask. The interest rate could easily be half that of a credit card, and you won't have to pay the cash advance fee that you'd have to pay to your credit card.
IF YOU HAVE PROBLEMS YOU SHOULD ALSO TALK TO THE FINANCIAL INSTITUTION. They might be able to lower your payment amount to keep you in the car.
By the way, it would also be likely that bankruptcy would be better than having your car yanked. Believe it or not, it's better to have a bankruptcy on your credit report than a repossession with an unpaid balance.
What makes this all sickening is that the "money" was "created out of thin air."
I have never bought a car on payments. Always CASH.
Someone has to buy new cars for there to be used cars...but it's not going to be me.
Thank you. This is pertinent to my current situation and was very helpful. I was thinking seriously of walking away from car. After watching this video, I was able to open my car loan mail and found it wasn’t as bad as I thought. Finance company appears to have done what I asked and I am actually current on loan with only $90 in fees! Yeah!!! Thank you and thank you again!
I watched this for entertainment purposes, but was pleasantly surprised and learned alot. Thanks Steve!
These are the classes that need to be taught in high school meanwhile we are getting taught all of these classes that we will never use in life
I gave the car back. Guess what I filed bankruptcy. I'm so glad I did. And now I can save $3000.00 and pay cash for a car
Keep it short and simple, FILE FOR BANKRUPTCY!!!
I had a car and I voluntary gave it to the bank.. they sent someone to my door he picked it up I gave the keys etc. they sold it at auction and I owed like 7K. I did not have work could not find a job etc. I got a big tax refund from the IRS so I went and bought another car paid cash and have the pink slip to it. So a few months later i get a letter in the mail and it is a lawsuit. Someone has filed a class action against the lender that I had. I read it carefuly andf it was going to be settle the case. You had two options, take them on yourself and pay your own lawyer etc. Or just do nothing to be part of the settlement. I choice to be part of the settlement. So the settlement was for any balance on that care is to be zeroed out thus not owning anymore and to clear the credit report or they cant put a repo on your credit report. It was they were doing something illegal on the repos involuntary and voluntary Repo's SO this one worked out and I have own my cars since then free and clear.
Congrats, what a blessing. I hope this can happen to me too
Great show, as someone who’s been buying cars at dealer auctions for 20 years, repo cars bring every bit what they are worth. If anything, they might sell for more than on Craigslist. Dealers pay top dollar because they can’t afford to drive all over looking at cars for sale and they make the money on financing, not the sale anyway. Wealthiest used car dealer in Detroit sells all his inventory at auction to buy here, pay here dealers. Those dealers make their money by selling overpriced cars to people that have bad credit.
Another feature of vehicle ownership here is the ability to perform retroactive transfers via the Internet. I had a car stolen, stripped, and abandoned, only to be towed and stored for far more than the remaining hulk was worth. A retroactive transfer to the towing company solved the problem, as this way, they were charging ME for towing and storing THEIR own hulk - which would never stand up to scrutiny. At minimum, this would immediately stop ongoing storage charges. In fact, it complicated the situation beyond their ability to resolve to their advantage, so both the hulk and the charges disappeared - after some threatening messages.
Well, let me say this to all you young people, don't buy new cars they are are to expensive for you to own ,you'll have to make the payment plus get full coverage in insurance and a high registration fee every year. Plus because of your lack of credit history your probably not going to get a very good interest rate.
You can always repair your credit down the road. You either wanna mess your credit up temporarily or stay losing your money on an expensive shitty vehicle ⚖️
Never get a loan. Debt is a terrible thing to have over your head. I never had debt in my life. When I couldn't afford a car, I rode my bicycle or took the bus.
Debt is necessary if you ever want to run a business. It is not debt that gets people in trouble, but it’s mismanagement. Access to credit and debt servicing have been foundations of economic systems of various types for thousands of years.
I worked at a credit union. It was pretty common for people to just go into the lot and steal wahtever they could off the repod cars. Tailgates, tires, brake pads, gas caps etc.
Get a cheap beater that you can afford and don’t buy what you can’t afford. I eliminated that problem by paying cash for my cars. When you have that paid off car then setup a car savings account and make monthly payments to that account and when you have enough then pay cash for your next car. What he’s talking about is a bad trap. Do not let yourself become a victim of the banks.
Excellent advice i say it from experience. In the case of a major breakdown i have found if you go to whomever holds the lean. They will often help get the repairs made and tag on the extra cost onto your lein. I have had to do this twice 9nce on a Ford Explorer and once on a dozer i had bought. Of course you have to have been making your payments on time if you fall behind they are not inclined to help. Jus5 go to them and say something major happened and i am stuck between making payments or fixing whatever it is. Most times they dont want to deal with the above described process and will just help you fix it and you just continue making the payments.
One of my favorite videos, I love when people say they can walk away from their loans so easy. It makes me chuckle
Man, this is cold. Not sure how many times I heard, "it get's worse."
Just file bankruptcy and go to court over it and negotiate. Any fees etc will be determined by a judge. Stay legal. All this talk about what to do just makes people desperate. Desperate people are tempted to do illegal things. Bad credit isn’t the end of everything. Get an attorney and file bankruptcy. If car not working, surrender it under the bankruptcy. It will be better in the end than getting overwhelmed and doing something illegal or worrying oneself into bad health, i.e. heart attack, etc.
Stephen Bottom Absolutely! 👍
Roz Christopherson Illegal? People are stupid!!!! A car is a material item. Big deal. And credit, who cares? After studying the Banking System, how it was DESIGNED to keep people debt slaves, if I don’t have the cash, it wasn’t meant for me to have. In another 2 months, I’ll be able to pay $15,000 cash for a car.
That's why I pay cash upfront for my used cars. I bought a 3yr old Chrysler 300c srt with 50k miles for $21k. New it was $52k. Now it has 210k miles and runs great as my daily driver. Just save up.
Seems as though the saying " Debt is dumb, cash is King." May have some validity.
Keep in mind some states don't allow for the charging of any other fees once the car is repoe'd. Florida for instance, once they take the car it's considered even, no extra repo or auction charges are allowed.
What? Florida doing something right for once?
I gotta add this video to my playlist for credit repair, I help people doing that and you explsined it correctly, love it thanks
You've got me looking out for the repo man, and my truck payment isn't due for 2 weeks lol.
😆
My brother did Chapter 7. Three months later went to the bank and borrowed a quarter million for a house that he eventually lost years later.
I have never been even close to late on any payment. Paid off many cars and a house with perfect precision. Needed to get a mortgage for a house. Bank treated me like I was a criminal with a 850 credit score. Put me through hell to get that mortgage. When I brought up my brothers situation they said he was treated different because the bank knew he had no debts because of his bankruptcy. Moral to the story is don't be conscientious. Don't be concerned about being credit worthy. It's just an Albatross. Declare bankruptcy every 7 years and the banks will love you.
excellent info, thanks Steve. wish all kids in high school could see this. love your videos - educational and entertaining.
Love your channel and ran a tow company that contracted with repo company. Your correct about tow companies 100 percent but i ran a tow company for an honest guy. I did the repos and i have many stories. Never cut locks but did go on properties. We lost our contract because we were honest. We worked for majestic and got a flat fee 140 thats all. Even if it sat in our lot for 2 weeks. The police know who towed it but are told to tell them call lender. People know cops and soon we had people coming to our location. They were telling us that the tow fee was a couple hundred bucks and storage was everyday. We let people know as long as the car was in our lot the only cost paid was 140. So we lost our contract. Tow companies do go through cars and I'm sad to say steal. I've fired guys for that. I did a police tow when in our yard getting registration i found 3 400 hundred bucks. Police document said nothing of value after their inspection. The money was weekend receipts for restaurant they managed. Clear see through bag with amounts. Gave to police supervisor. Another time stolen car same thing 10 envelopes of cash. Last example repoed a car used my expertise to jump an electronic entrance system got into the garage got the car. This was a repo high five. Found out it was an elderly woman who called for her belongings including a walker. Im going to hell for this one. Talked to her and said I'd bring her stuff personally. The whole time I'm thinking going to hell. Meet her, she hugs me and says she went to dealership to inquire about a car walked out owning one. Never could afford it. Always behind in payments, insurance high, and cost of parking space. She didn't know what to do. I told her don't pay anything just forget about it your in your 80s
I had a car repo about 34 years ago..I had other issues going on in my life...I was no longer working full time. I worked off the books for a while and I did not get a bank account for many years or work full time...They tried after 10 years after my repo to get money, and I told them the statue of limatations has past..I did not hear from them since. I now have perfect credit score and have a successful career . I own a house and nothing is no longer on my credit report..I was able to get by not having to pay
Most reputable repomen use a stinger, not the stereotypically tow truck with a hook and sling. This lifts the vehicle by the wheels to avoid most body damage. If the drive wheels are on the pavement, it may cause damage to the transmission and/or engine during the tow. They try to avoid this, but it cannot always happen.
I used to work collections and the answer to "The car got totaled/blew up" was "don't care, we loaned you money, not a car, pay up".
car financing is a waste of money...just buy something older cash and be done with it.
i daily drive a 96 camaro Z28 in the summer, winter i buy whatever. i have owned that camaro since 2014 and put 50K on it so far.
People who depend on their car for work/school etc.. would rather invest in a new car than buy a beater and have to worry about maintenance repairs etc. not everyone can work on thier own car. Now if you are a mechanic then by all means a preowned car is for you.
I went through this twice. NEVER PAID THEM A CENT. After 5 years it dropped off both times. Ive purchased 2 cars and a house since lol. However ive never been taken to court. I never answered any call or letter they ever sent me. I guess i was lucky lol
The best solution while not always possible is to buy a car you can afford without taking a loan on it. I'm 45 years old and have never had an auto loan in my life and no I am not well off. The newest car I've owned was eight years old, the most I've ever paid was $7,000.00 for a 2002 Chevy Tahoe that I currently own, it had 88K miles on it when I bought it in 2011 and now has 195K miles on it and still going strong even though I use it very often to two a trailer for my business. Only fools and people with too much money buy new cars. I've put very little in my car as far as maintenance goes. Aside from routine maintenance, oil changes, grease, brakes etc. I've had to change the wheel bearings, ball joints and fuel injectors and that's about it, they too are really maintenance items. A friend of mine bought a top dollar Dodge one ton dully a few years ago for 68K and just the maintenance every year to keep the warranty is ridiculously expensive. I get it that not everyone can work on their own cars but even considering that buying a used one at a third of the cost of a new car usually will save you a huge amount of money in the long run.
Ford f350 new over 70k, a year later 30k if you're very lucky to find someone who wants it bad.
I've had 3 repos in a row and haven't been sued for any of them. The loans are insured so the loaner gets paid then sells the debt to collect more money off of it.
Thank you for the golden advice. I wish everyone in this position would listen to this.
Happened to me I became homeless. Lender did a charge off that was on my credit report, but found out that they had actually gotten a judgement due to a garnishment on my wages. The judgement was for $3300.00 plus interest at 34% interest a year. I now am being garnished for a total of $6600.00.
Steve, I really like your vids and your style,Wish I could afford you should I ever need a lawyer.
On this vid I believe you over thought it or over complicated it . Keep it simple I have done the walk away, stopped paying,used the car till I no longer needed it,(couple months) then told them were the car was. THE TRICK IS: be prepared to go chapter 7.
Now, being the SQUARE, that you must be in your profession,you think OMG no more credit, no car nothing its the end of the world. Nothing is further from the truth. A year and a half later I was getting pre approved credit cards in the mail and within 3 years had an excellent credit score. They are sooo eager to get you back into debt!!
Sir, you are a national treasure. I have learned quite a bit from watching your videos. Please don't stop making them.
I buy used and I pay cash. The only long term loan that I have is my mortgage and even that was way below what I could have bought based on my income level and debt to income ratio. I have two credit cards with very low limits and I keep it that way. Life is good!
Lawyers laughs are scary
I am a small used car dealer in Ohio and here repo cars are sold at the Public auctions where regular people can buy it next to used car dealers. I also do Buy Here Pay Here where I am a bank in the way. I like when people voluntarily surrender their vehicle and I make them sign the title and I don't go after them. It doesn't' happen that often anyway. This way a get a car back in a good shape and sell it again. I have never sued a person for a balance after voluntary repossession.
zilvova YOUR AWESOME!
Do you end up making more money than the balance left before the repo
Have a friend in Odessa Tx that has a tote the note lot. He has the kill swiches on his cars but always wants to work with the vehicle owners(renters). He works on down and three. The owner pays the down payment and three monthly payments and he is good. You cant make the payments, come back in. That beauty on the second row, payments are $100 less than this one, you come up with the down payment we will trade and you have something to drive. Cant do that, leave the one you got and cone back and see me when you can afford one.
He has two good mechanics working for him and has repod a bunch but the customers always come back. His motto is a seat for every butt. Always.
He is not rich by any means and works 6 days a week but has a pretty nice business.
If you can afford higher end and pay cash he comes across some good deals occasionally.
ZILVOVA: DO YOU SEND THEM THE DIFFERENCE IF IT SELLS FOR MORE THEN WHAT THEY OWE?
Had this issue 5yrs ago during my divorce. Called up Toyota and they said take the car to a Toyota certified car dealership and drop off the car and the keys. They then sold it at a Toyota auction, and this actually worked out good, as Toyota's has such good resale value. I was left with a balance, BUT it was significantly lower than if I just let them take the car. Note, everyone at the dealership kept telling me they don't except cars in this manner, that's when I pointed out the Toyota certified sign and sat my keys on his desk and walked away.
Great advice! I can try helping others by spreading this video now. Pure Gold I would say.
Great advice. Also works for your house and mortgage payments. Sell your stuff before the Bank takes it and sells it for you at the cheapest price imaginable! And you will still owe money after the Bank gives away your stuff. :)
After it is auctioned, they should allow you to buy it for what the dealer offered...
What's pathetic, they don't allow you to sell a car that you are upside down on, but they will sell it at auction for 1/2 of what someone would be willing to pay.
I DECLARE.... BANKRUPTY!!!
- Michael Scott
Mr. Lehto, I find your column on this channel quite enjoyable & informative. Keep up the good work! I think your life before you became an atty gives you a depth that many lack.
One thing I would like to see is someone who would take on the appalling state of our education system.
File bankruptcy. It's not a big deal and its cheaper than other alternatives.
After High school I switched from one Honda to another. I went to my insurance company and told them and evidently they thought I was there for a quote. 6 months later after paying my insurance I got in an accident on my 21st birthday. I called my insurance company and they paid for the truck that I hit. I was young It happens. The adjuster came to my house to do an estimate on my car.. He noticed I a different year of Honda than on record. The company refused to pay for my car even though they paid the other guy and I was making payments. So I did a voluntary Repo. 12 years later my paychecks were being garnished. This lasted for almost 2 years. It was horrible.
jerry fogle Why were your paychecks garnished? That never happened to me.
I knew a guy, way back then, who once he knew he couldn't make the payments on his high performance vehicle, he swapped the engine with an old one before the bank took the car back.
I've been watching Steve for awhile now and I was surprised by this classic. What a gem of a video! I just watched a video with the same story about the repossession that moved the owned vehicle into the street. Go figure.
I took my upside down car back to the dealer I purchased it from. I put the keys and the ownership in the drop box with a note. That was 13 months ago. Never heard a word, not against my credit rating either. Maybe just got lucky or because it is Canada.
Great info Lehto! I lost my job a long time ago and had a car note. As a result, I quickly informed my lien holder. In returned, they restructured my contact by giving me two months payment free and added two months on the end.
Great information. Thank you for posting.
My mother in law 80 years old lost her husband . They owed money on this newer Honda, about three times what it was worth. We called the lender and told them to pick it up. In Arizona they couldn't do anything about it. Sure they put something on a cradit report. Think about it for a minute she's 80 years old lives with her daughter on social security. She surely doesn't need any more loans. It's been a couple years now and the banks have done nothing. they got the colateral for the loan and that's all they are ever going to get. The lender may have insured the loan against death of the borrower. It was the best option for the mother inlaw!
My dad sent me this video. Very interesting! Thanks for doing what you do.
That's why my favorite camping and shooting locations are constantly getting littered with brand new shot up and burned out cars. People destroying them, reporting them stolen and letting the insurance company deal with the banks.
Once the bank charge back to collections thay have no further interest. Never acknowledge debt to collections. 5 years later ya get a debt forgiveness letter that you have to pay income tax. Sometimes you need money more than credit.
Not always. I did a voluntary repossession and it was cheaper since I surrendered the keys. Once it was over I filed chapter 7. Everything was discharged. 2 years later I purchased a home and eventually financed a new car.
@Herbert Norkus she let it get repod, she was forced into a repossession. Dal is talking about personally giving the bank your car and getting out of the term
What about walking away from a house (giving the lender the keys). I know it happened a lot in So Cal in about 1994, though I guess it doesn't happen often. Probably happened in 2009 too.
I voluntarily turned in my brand new Jeep because I was headed for divorce and a BK. BK solved all the problems you're laying out, screwed up my credit for years, hit rock bottom after the divorce, but the voluntary repo was no problem.
If it's that bad file bankruptcy.
There are 3 kinds of people in this country:
-Those who are good at math and English,
-And those who don’t.
🤪
The system is a tax on these people. READ contracts and DO THE MATH. And listen to Mr. Lehto.
Lesson I learned here, dont let it be reposed, simply burn it for the insurance, LOL,
Riiiiight. Insurance fraud is soooo much better. Instead of a bad credit score, you've got a felony and a bad credit history.
About a decade ago I had a truck that I owed 20 grand on.. Economy was bad.. A buyer offered me $17000.. I ask for a settlement on the loan .. Never missed a payment.. They settled for $16,000.. Had a local attorney and my insurance guy bet me $500 each that doing that was impossible.. showed paper work.. They paid up LOL.. Had to pay taxes on the 4 grand.. Dinged the credit a bit but didn't ruin it too bad.. Plus at the Auctions people weren't even bidding on these trucks.. I took advantage of a poor market..
Thanks for the advice! Also, I just went to Amazon and bought your e-book... looking forward to reading it.
In 1980 I bought a new Mitsubishi pick up. I paid too much money for it. The interest rate was ridiculously high. The payments were killing me. After six months I saw the writing on the wall. I sold the car and took out a $2000 unsecured loan to pay the balance. Then I bought a cheap used car. It was 33 years later when I bought my second nee car.
Need a car =>
Go to used car dealer
Find something reasonable
Go to finance
Say F** U to the finance here some cash.
Live your life!
This video was excellent! Anyone contemplating taking out a car loan or defaulting on a loan should watch this video! As an addendum, it is also prudent not to take out a loan on a car in the first place. Car dealers will always attempt to up sell customers on all kinds of needless junk and useless fees which one is not required to pay. One must stand firm and only purchase what one can afford. It is better to lease a small, new, economy car with a warranty for $150 per month than to take out a $500 per month loan on an expensive used car with no warranty. There is no shame in doing so, and it will save one trouble. If one can locate an old but reliable used car from a friend or relative for a couple of thousand dollars, even better still. This will enable one to save money towards a nice new car without having to take out any loan.
i had one a while ago repoed they put it up on a flatbed and didnt tie it down and when he took off it flew off the back
I live in Colorado, and remember Tim.Masters as my lawyer was good friends with David Lane. So happy he was able to be freed. I came across this video because I did a Spot Aggreement at Echo Park. on a used 2016 Suburu Crosstrek. It had 8000 miles on it. Was told my payments would be 365.00 a month thru Bellco. But after I had car a week or so, it changed to 440.00 thru Ally. But on the first day, I smelled fuel in cabin, transmission ( CVT) seemed to get stuck in wrong gear often, cheaply made interior, ie Visor broke off, stuff like that, sensors went bad, anyway, thru a series of devastating financial events, I am now pretty much jobless except food delivery, and homeless, living in car with my dog who has PTSD from horrific abuse, health issues. And at end of December, in spite of putting 4 payments at end of loan , I will be 3 payments behind. If I lose car, I lose my shelter, and my dog. Which is only family. I already trashed credit, got it up in the 800's but now it's really bad. Do you have any advice?
Interesting channel! SUBBED!
Very good job explaining things! 👍
I trick I like to do in the event I'm tight on cash on month or two is to pay a small amount towards my car loan. I had a tight month this year and I called up the bank and they just told me to just skip a month because I was 3 months ahead in payments. Doesn't hurt to pay more when you can so when things seem tight you can do something like that.
That's a little risky. Bank could easily have said sorry, you have to pay up. They are quick to punish for missed payments but are not obligated to reward you for early payments. I'd prefer to store at least some of that money in cash savings so I don't have to miss payment in first place. Requires discipline, but sure helps to smooth out cashflow by keeping at least a month's worth of income in a savings account.