Auto Repo Question

Q: Auto Repo Question ? I have a question about an auto repo situation. A girl who is a real good friend of mine had her car repossed late last Fall because she could not afford the payments. She gave the car back. Now she wants to get a new car that has real low payments she can afford but now she wonders if they can come back and take away the new car too if they feel they should get some more money on the car that they repossessed?? Does anyone have any idea if they can take away another car if she decides to get one? Thanks in advance for any advice on this situation. She is low income and they cannot take anything she has anyway

A: -It's not a matter of how the finance company 'feels'. It's a matter of if they have the legal ability to take further action against this girl. If the car she turned in didn't sell for a sufficient amount to cover the loan and sale costs, the finance company may have gotten a deficiency judgement against this girl. If so, she would have gotten notice of same unless she is on the lam and trying to hide. You need to ask this girl about any such judgements or any action the finance company of the first car may have taken against her subsequent to her turning the car in. If

there was none, then she is in the clear. Also State and local law varies when it comes to debtor / repossession issues. That may also bear. -The lender from the first repossession can seek a deficiency judgment on the first auto loan if the amount of the repossessed auto was less than what was outstanding on the car loan, but that has nothing to do with her purchasing a second car. Although, I would be suprised if she can find a lender to finance a second car for her at a reasonable interest rate after the first repossession. If she buys a new car, the lender from the repossessed car does not have any security in the new car, so they could not legally repossess the new car. .