One thing that many people do not understand is how car repossession works when it comes to your credit. One thing is that it does not matter if you give them the car back or they take the car in the middle of the night.

Many times I speak with clients and they said they bought the car, had nothing but problems from the start so they dropped it off at the dealer they were fighting with and said “you deal with it”!

So the first problem is misunderstanding. The dealer sold the car, that’s all they did, think of them as the middle man. They found the product you wanted (the car) and then spoke to a bank that looked at your credit and said they would finance you at a certain interest rate.

Once the deal is done (and the 3 day time frame has expired) then the relationship is between you and the bank as the 1st lien holder.

However many states have a 30 day lemon law if there are problems but many times the dealer tries to bully the consumer, especially if English is not their primary language. Not be pushed around if they try to bully you. And NEVER go back the next day because they “had to redo some paperwork”. I have heard about this many times and somehow everything gets changed and the consumer gets taken advantage of.

One of the best things to do is have a lawyer in your corner but at their prices who could afford it? Not the average consumer. However if you want a top rated law firm in your state for very little contact me at and I will fill you in on a little secret that you will be very happy to hear about.

Now for the bad news about repossession and your credit, If your car gets repossessed and for example let’s say the price of the car is $20,000 . The payments are not made and 3 months later (sometimes 60 days) they car is taken back. As the banks are not in the business of collecting cars they sell it at auction and they try to recoup as much of their money as they car. If they only get $10,000 back then according to the contract they are still owed $10,000 more and guess who is responsible? Yes it’s you, and this also goes for you if you cosigned for a friend or family member then what you are telling the bank is that if your friend/family member does pay them you will and that’s something many co-signers are not aware of.

So as you can imagine I always tell people to not cosign for someone knowing what can happen to their credit. And many of those cosigners are not in the financial position to pay the rest of the car off.

So the moral of this story is to help you understand what can happen to you if a car gets reposed what the ramifications are. And how not to be taken advantage of by a dealer and an avenue to help you when you need legal help.