CAR LOAN DANGERS, Repossessions, Surrenders, Deficiency Lawsuits, and Bankruptcy
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- Опубліковано 16 вер 2024
- Attorney Bob Litchfield explains the hidden financial dangers in car loans that ruin the lives of many unsuspecting young couples. If you have an illness, an accident, or a job lay-off and you cannot make your car payments, don't think that you can just give the car back to the dealer and walk away from the unpaid balance of the car loan. What the law allows the car lender to do next can ruin your financial life.
Bankruptcy may be the only way that you can avoid being sued for a deficiency claim on a car loan, even if you voluntarily give the car back.
I lost my job about a month ago and this scenario fits my situation pretty accurately. Never again will I buy a car new.
Smart move!!!
This man makes lawyers look good and his message at the last two minutes is awesome
Jaime Reinoso
Should be an add
I wish I would have know this from the very start. This is a video that everybody should watch before going to buy another car, This video is awesome..
Byrdmann
The 7 dislikes are from Auto Lenders...
Jati Prasetyo Nuso, hahaha!😂😂😂yeah
Jati Prasetyo Nuso lol.. now it's 13.. lol
And car manufacturers and their dealers.
Student loans, auto loans, mortgages. I'm going live in the up in the mountains where it's safe.
Car salesmen are a huge part of the problem. My 18 year old son went to a dealer for a used car and expressed concern to the salesman about being able to make payment on time and the he was told, "If you can't make a payment just call and we'll work with you". I told my son he was being lied to. Car salesmen will tell you anything to get their commission.
Any time a care salesman makes a statement like that, ask that it be put in the purchase agreement in writing. Watch how fast they backtrack....
Get everything in writing! Never take them at there word . Wording is easily said then lie about it.
Always pay cash for the car or ride a bicycle.
Some people need vehicles to get to work so they can make cash because their work is too far to bike.
stupid answer, some people hit hard times..
People want to drive outside of their class and impress people that don't matter.
Not smart. Never pay cash
@@earlscheib7754 Buying a cheap car cash can cost you more than a new car in the long run, unless you know how to fix cars yourself
I agree with this video on the injustice and problems this system has with using and abusing the American system.
I don't ever want to buy a brand new car again nor pay car payment I want to be an in a position just pay cash for these freaking piece of crap cars.
This guy is awesome, he's passionate, and actually trying to solve people. I honestly wish I could be a lawyer to help people like this my family was destroyed due to debt and the best tool is to educate.
Great message! You are a great man and lawyer... Thank you for caring
Thank you for seeing how much this is hurting and affecting my life. It seems like I'm making payments on the hardest time of my life. It's a very painful process that I have to relive every single month when I make a payment. God bless your words and you made me feel encouraged even though there isn't a solution to the problem at this time.
i wish we knew all this before it was too late :( our first new car from last year just got repod the eve of 4th of July and we had to pay $75 just to get our own belongings out of it! and now we might have to file bankruptcy... what a nightmare
How much was your deficiency and how long did they give you to pay it back?
I'm hanging on to my 2006 Chevy!
How?
This is a very good and basic demonstration of the whole "car repo and being sued for deficiency" of car dealerships and bank loans.I'm being sued right now for deficiency. I paid off half of what the car was worth, probably 3/4 paid off,not to mention i installed a newly used motor for 2700, brand new radiator for 300 and a new tire for 100. All that money down the drain and the bank just won't lay off and be happy with what they have after the repossession. makes me sick.I do need help here.
Great information. I have someone who’s like a little brother to me going through a similar scenario and is unable to make his payments. I will now help him look into filing for bankruptcy. Thank you so much for this video.
Life is not ruined over a car repo. Can rebuild your credit and start over.. that's somewhat harsh saying life is over because of a repo B.S. nonsense. Get a lawyer file chapter 7 or 13, tell the bank to shove the defienciy balance up there ass, start over and make better choices and you'll be happy
yeah but when they garnish your check then what ?
As he stated, get the deficiency discharged through bankruptcy.
if they let you do it . not always an option anymore
hes right im going through that now chapter 13 it dont ruin your life i never heard of them garnish your check i had 2repos my life time and im 30 just file bankruptcy
@@TNBuckeye1617 it can cause thousands of dollars to file bankruptcy though, it’s so expensive to the point where you probably were financially able to work something out with the lender and pay off the loan in installments, so that’s not an option for everybody.
I have never had a problem. Thank you for the tips and will make sure my children watch this video. Thank you Awesome video.
Right on!!! Thank you for this.
I hope the manufacturers see this video and do something... it's really ridiculous!!!
God bless you too!
Millie Ortiz what does the manufacture have to do with anything? And what can they fix?
The last couple of minutes....YAY!!!!🎉🎉🎉 Good job, sir!
thanks men. I'll pay off the rest of what I owe and I will NEVER buy another car off the lot.. i am basically a slave to the car until it's fully payed damnn
Buy Private bro stuff the car dealers.
I gotta do the same. I remember a an older guy telling me when I was 20 to buy your car cash and your house cash otherwise financing with bad credit will be harmful. That's why I plan to buy a ghetto house and just stack or invest to gradually get a better house.
Man i agree with this guy. God bless!
why would anyone get a car loan?? no reason ..save and buy something cash. never heard of cash suing anyone.
And if you have a 7% interest loan they add $20,000 more so you have a $40,000 loan for 5 or 6 years but the dealer is willing to take $5000 for the car.its a Bernie Madoff's loan calculation all dealership uses as of October 2018.most salespeople will tell you it's a simple interest loan but it's not, its compound interest or amortize interest loan basically to screw you if you can't buy cash.
thank you
I'd like to hire this guy on a retainer!!! Simply Awesome!
I PERSONALLY WANT TO THANK YOU.. MY NEPHEW IS IN THIS EXACT FIX...THANKZ FOR EXPLAINING...
Right on!!! I am truly grateful for what you said at the end of this video!!! Thank you!!!
I bought a 19k suv..never again.. car payments drag on..
I'm never buying a Car with payments again-i didn't know this and I sent a car back for a blown transmission-and now I have a$2000 defiency bill-and I heard if they take you to court you pay even more-can I just get a settlement and a wage garnish or something? it would of cost $2000 to fix the stupid car-if I knew this before but now its to late-
I will never buy anything from Nissan ever again
Boss Player you didn't learn you lesson if your blaming Nissan. All financing companies are the same. Don't buy a car you can't pay at least the majority in cash. Paying interest is throwing away your money.
not talking about that but I had gotten my car towed for parking in a street that was not allowed at night the car was taken to random tow truck yard for some reason they notified my finance company they called me and told me they were planning on getting the car I said not to worry I will get the car myself they stated they already got the car and it was waiting in a different car lot. So I had to pay a impound fee for one lot, a repo fee even tho my car was up to date on payments and there was no need to pick up my car, on top of that they wanted their own lot fee... the total came out to 6000 plus with repo and both lot fees... I explained my situation to Nissans collection department and they insisted the car was not in my possession I said the car was towed and I was planning on getting it myself but they didn't care of my side of the story what was done was done.... I owed like 5000 on it to pay it off and they ripped me off... I said fine can we add the balance to my total then so I can pay it off they said no they wanted the money cash which I believe they do to scam people they could have easily said sir with your good standing with us we will add the balance to your current loan... after the fact they stole my car I was paying for years they told me there was no equity in it so basically they said I owed them money I thought that what ever they sold the car for was gonna cover my pay off and the accruded fees so I would have got some type of money back since I had paid for years on end but no they said they sold the car dirt cheap and I owed them money the car was 3 years old with low miles could have sold for 14,000 kbb was higher than that....so what you said about paying most of it I don't agree if you cant buy a car out right cash don't buy one these finance companies the minute something happens or your car is not in your drive way and the finance company finds out they will fuck you over
crunch9876, did you learn your lesson?
@@CRONIKMASTERBATR That was really painful to read bro...I mean the lack of punctuation.
I had a deficiency for a volunteer surrender. Strange, I never heard of them ever again. Nothings on credit
How long ago did you surrender your vehicle?
@@SuperThunder911 it's been some years but not even then. I received the letter but no report
Did you ever hear back from them? I’m in the same boat nothing is showing on my credit I’m not sure where to go from here?
That's a rarity. May not have been worth it.
@@elizabethmendoza4012 Don't count on them not coming after you. You will have to either pay them of file Chapter 7.
You are wonderful! Praise the LORD for this video!
10 years later and I see temp tags everywhere. Ppl don't think when buying vehicles.
My first car was paid cash in full. Same with my second through fifth cars. I finally took the plunge for my sixth and current car bc I wanted something newer with less time spent at the mechanics lol. I bought a used 2009 suv in 2010 with next to no miles on it. I paid it all off early, but man, my stress and anxiety levels were so high being a slave to the lender, and that was being in good standing and current on payments. I hate having debt! I can only imagine what others must feel like who are behind on a payment😳
2020 for this guy, I'm I right
This is why there are 72 and 84 month auto loans with skip a payment options.
Never seen a skip a payment option. If you need that long to pay, you can't afford the car.
Buying a new car is a bad investment & waste of money as all new cars lose
value with age. And financing is even worse it's good for the dealership but the buyer is screwed in the long run. By the time the car is paid off the car won't be
worth much a $35,000 new car in 3 or 4 years is only worth $11,000 it's money out the window. And life happens you can lose your job as job security
is not what it used to be. It's better & more sensible to pay cash or finance a classic car as they retain & go up in value but can also go down even a house is up & down. Years ago when I had money I invested in vintage cars & I saw how volatile & fickle the market is. If a '57 Chevy Bel Air Convertible can go down in value than any car can. But it's still a better investment than a new car. Banks need to stop financing new & used cars for more than what the cars are really worth. And the buyers need to come up with at least 50% cash down & never buy a "certified pre-owned" car they are just OVERPRICED USED CARS. If a certified pre-owned car sells for $11,000 at a new car store it's only really worth $4,000 to a used car dealer or private party.
I was lucky I make bigger payments and paid off my car in 4 years. I was laid off during the oil bust I own only 3k to the car loan so I was able to get a job making about half of what I use to make, but I was able to paid off my car and keep it.
If this guy run for office he has my vote
he justified all! if people dont want their lifes ruined then ...
dont take what you cant afford!
Great info., Thank you.
Look up the PDF file called The Nature of Money by Alfred Adask. Start at the bottom of page 59. The loan company takes the repo, sells it at auction, files the balance at the end of the year as a loss and then tries to sue you for the same loss, without a title. Guess what? If they don't have the title they can't take you to a court of law! Read the UCC codes!
Who in their right mind would CALL the dealer and volunteer to give them the car back because they can't make the payments? If you can't make the payments, you sell the car. Plain and simple. If you owe more than the cars worth and don't want to sell privately? Trade down at a dealership and add the negative equity onto a cheaper car. I mean come on, people have such doom and gloom scenarios for things that are far less stressful than they're made out to be.
Parallax - I tried doing that with mine but they said it couldn't be done. I think it BS though
Much easier said than done sir....and negative equity starts when you sign the papers and drive off the lot.
So sad how they use people
I vote to pass that law Amen
Love this guy! Preach ✊🏾
THanks Counselor!
This guy is on point. We need him on CNN.
awsome layweer ty sir
Forget buying a new car
Thanks for the video
Thank you for your info. and your concern for us.
and here we are in 2020 with 100 grand suvs
i see your passion brother,and i admire it.keep it up please
Unfortunately this video is too late 4 me
Warm greetings Bob Litchfield. Thank you so much for making this video. God bless you!
This is realeast video i ran across about this situation. You're totally right about vehicle inflation and the the lenders treating you like crap!! Its all about money.. But thats the so called "american" way..
it is so wrong-they got the dam car back over charged me for it-so they already got what the cars worth-i had to the fix the stupid thing 5times when I had it and put new tires on it-cause they sold it to me with old tires-old battery-and now they want $2000 more!never again-pay cash-live and learn I guess-i never even heard of this before-
Preach
Normally I have the greatest respect for practitioners of law, but it now appears that there is an exception. So let's define a car dealer, can anyone define one?
My definition of a car dealer is this: An ordinary citizen whose trade is the lawful trade of automobiles. He/she makes a profit by legally acquiring vehicles, repairing them, reconditioning them, preparing them for sale, and then selling to the general public, and it is in this way that this citizen provides for his/her family, from housing, to food, medicine, education, etc...
So when another citizen, without the funds to purchase the car in full, makes a promise (in writing I might add), that he/she will pay for the car.... and then the buyer becomes a deadbeat.... some lawyer proposes that the solution is to restrict the ability to collect on deadbeats?
I would like to make an amendment to that proposal. My amendment would be, that the restriction of deficiency judgements would also apply to legal fees. Meaning, if a client comes to see this lawyer, the lawyer agrees to represent the client by accepting a written "I Owe You" (we can call it something fancy, like a "Legal Representation Agreement"). And this lawyer will have to abide by all the legal regulations that I must abide by, such as:
State & Federal Unfair & Deceptive Practices laws
State Usury laws
The Truth in Lending Act
The Fair & Accurate Credit Transaction Act
The Privacy Rule
The Safeguards Rule
The Fair Debt Collections Practices Act
etc...
And when the client has what he wants, all he has to say is "Sorry homie but I'm broke", and the lawyer's only recourse is.... nothing, because he will most certainly be a champion for the end of deficiencies. I'm sure that the family at home, looking into an empty fridge at dinner time would be proud.
Dealers sell cars and they do so at great risk as they allow complete and total strangers to just drive away with an investment worth tens of thousands of dollars, and all the dealer gets in return is a piece of paper that is basically nothing more than an "I Owe You" Even with a "successful" repo, the vehicles are often returned with substantial damage and require significant repair and reconditioning, none of which is free. It's not uncommon for the vehicles to damaged beyond the value of the car, rendering it a total loss.
If a law is to be passed regarding auto loans, let's just outlaw auto loans all together, from now on everybody pays cash. That's what I did when I was 15, bought my first car for $850 when I was working minimum wage. I have never made a car payment, never had a car loan. I don't think lesser of people who do have car loans, if they want to manage their money in a way where they must be in continuous debt, it's not my business. I do however have a low opinion of those who believe that it is good practice to promise, in writing, to pay in exchange for a product ( a car), and when it's time for the buyer to uphold his end of his promise, he thinks it's optional. It's not.
That was so awesome you're amazing and thank you for the information very helpful
Don’t blame the car. if you lose your job ,You drive Out of the garage. with the biggest smile on your face When you get the deal you know the risks it’s the same the world over
They are not going to do what's right. They get bailed out by the government.
2016 this guy!!!
Being in the business I'd like to know where I can buy 25K cars for 5K
I don't this Attorney understands negative equity, or the fact car prices are not only market driven but inflated by government mandates, backup cameras, tire pressure monitors, electronic stability control, antilock brakes, front and side airbags, seatbelt retractors, stringent emission controls increasing fuel economy demands which necessitate expensive 6, 8 and 9 speed transmisssions, direct injection, and reducing internal engine drag by loosening tolerances which detrimentally decrease service life of cars.
Im in another state Texas Austin and mine is about a Texas Title and Payday loan and my car was repossessed. But have questions about what all took place also the tow guy won’t give me my property back! And I had a lot in it don’t no what to do need help! Ty
good one. thanks
Thank you so much..that is what is happening to our Family 2017 right now where is your link?
God bless you 💝
Why would they charge the couple the 15k? They got the car back
They signed a contract stating what would happen if repossessed
JTundra but the cars not worth what they owe. You sell me a house for 500 thousand. One year later I own 450 k and can't pay so you get a house back that's worth 200k
Do you think I don't still owe you 250k?
If the couple didn't owe the 15k then id go buy a new car everyday and then crash it return the car back crashed and not owe anything.
There is still good people out there.
The law says must sale for market value
What if it’s a lease and that happened
What is the difference of residual balance and deficiency balance?
Only pay cash drive what you can afford
great information
great video thank you
GREAT STUFF
Thank you for that video
i need ask about the interests .
if reposse the car way not do early pay for the car . i mean you must rebate the intereset for next time
Well said
Right on brother
nice topic
Sir you are an awesome guy
Don’t finance more than 36 months. Put the most you can. You can find great cars around $10K.
Best vid on Utube... run for prez...
I was about to get a loan from title max
But thank goodness I did research
Can't fix incompetence and ignorance... and those are the buyers. At times there are certainly 'pure' cases when one cannot pay, but not always. Most of the times, people just want fancy things and they don't want to pay for them. I don't think there should be a law protecting them. And since law is the subject- look at Louisiana.
I like this guy
Good stuff
I had a repossion I still ant file bankruptcy but what he saying is tru fix it now
Did they garnish your wages? Im thinking of letting my car go
What if you got a 1099 c for it
File bankruptcy and get discharged. Then you get suckered into getting back into debt by banks/creditors to fix credit, repair credit buy a car to fix your credit because they know you cannot file bankruptcy again in 8 years.
Wouldn't it be better if you sell the car yourself for a better sale, and owe the rest.
do you have to pay the 15,000 right away or could u set up a monthly payment?
Depends on the collector. It's easier for them to just force collection by seizing your bank account or wage garnishment than depend on the consumer.
I plan to catch up on my payments, and refinance my loan. That's the best option i have. But im struggling to catch up. Maybe a 401k loan could help. Anybody have better advice. Let me know thanks.
Two words...Personally responsibility.
Sir, with 2 words you have shown more wisdom than some lawyers with an entire youtube video.
true
What if you file bankruptcy? Do they still come after the dificency?
No.