Can my car be repossessed ifI paid $4000 cash for a $4500 car with $500 balance?

UPDATED: Oct 18, 2011

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UPDATED: Oct 18, 2011Fact Checked

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Can my car be repossessed ifI paid $4000 cash for a $4500 car with $500 balance?

Asked on October 18, 2011 under Bankruptcy Law, South Carolina


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The vehicle that you are writing about can be repossessed by the lender if the amount owed on it is not timely paid. The loan agreement for the vehicle's purchase typically sets forth the recourse that the lender can do if the loan is not paid under the document's express terms.

Hopefully you did not purchase this vehicle that you are writing about from a third person who was obligated under a loan that was not paid off concerning his or her purchase of the car. If you did, you took possession of the vehicle subject to the outstanding loan and you will have to keep the loan current or lose the vehicle through a repossession.

If you were not advised about the loan on the vehicle that was outstanding by the seller before you acquired it, you have a legal action against the seller for fraud.

Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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