California  |  Credit and Debt Law

Legal Question

Asked on: 10/17/13, 10:31 am

Am I legally bound to pay for my repossessed car?

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Answered on: 10/17/13, 10:39 am by Timothy McCormick

Only the difference, if any, between what they sell it for and what you owe - including repo fees, and all other fees and charges involved when you don't pay your auto loan payments when due. So if you owe $10,000 on the car, and they repo it, add late fees, repo fees, auction fees, etc. of $1,934, say, your total debt becomes $11,934. If the auction brings $7,500, you still are legally bound to pay $4,434. If the car is worth $15,000, and it brings $11,000 at auction (they never sell for full value at auction) you are legally bound to pay $934. If it brings $12,000 at auction, they owe you $66.


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Libris Solutions - Dispute Resolution Services 201 Spear St., Suite 1100 San Francisco, CA 94105

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Answered on: 10/17/13, 10:39 am by Carl Starrett

if the car lender follows the proper steps to sell the car in a commercially reasonable manner, they can try to collect the deficiency balance from you. You have the option of trying to settle with them or filing for bankruptcy.


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Law Offices of Carl H. Starrett II 1941-C Friendship Drive El Cajon, CA 92020-1144

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