Can the dealer still charge me my monthly payments when I don’t have the car?

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Can the dealer still charge me my monthly payments when I don’t have the car?

My car was repossessed without any phone calls from the dealer. I was given an amount to pay to get the car back. However, I wasn’t able to get the money like I thought, so upon contacting the dealer to advise of the situation, I was told I’d get it back by my next paycheck but would incur more expenses. Should they be charging a $400 repossession fee, and should they have given me a heads-up?

Asked on May 30, 2015 under Bankruptcy Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

1) If you don't make your payments, the dealer/financer does not need to give you a heads up--they can just go ahead and repossess.

2) If they repossess, if the contract of sale and/or financing agreement allows them to charge you a repossession fee (which it most likely does; this is common), they can charge you the fee.

3) If the car is worth less (such as due to depreciation) than the remaining balance due on the financing, then even after repossessing the car, they can seek the remaining balance from you.


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