Quote:
Originally Posted by lazypucker
Just thinking out loud:
SUV originally cost $80K + $8K cash back = total loan amount $88K
Let's say $3K has been paid back to the loan over the 4 months = $85K owing still to the bank
SUV is repossessed and the bank sold it for $70K = $15K gap
So the friend technically still owes the bank $15K right now. I suppose the bank will negotiate a payment plan or send it to a collection agency...
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Thats all correct but since the bank repossessed the car, they aren't legally owed anything anymore. They can still send it to collections but if they tried to get a legal judgement they wouldn't get it