Car dealerships are full of bright, shiny cars that we’d all love to be able to afford. If you purchased a car with a monthly payment slightly out of your budget, you wouldn’t be alone. Many people get in over their heads with a car loan and get behind on payments. And many of those people face the unfortunate reality that is repossession. So what happens when they come and take away your car?
They sell it at auction.
That’s right. They may not offer you the deal of paying your loan off for $3,000 but they will repossess and then sell at an online auto auction for that amount. Auctions are a multi-billion dollar business and much of that is made online. Your lender has no interest in storing the vehicle (that costs them) so they sell it at auction to avoid any overhead costs it might produce. Online auto auction software makes lenders more motivated than ever to repossess and resell.
Your credit gets awful.
Having a repossession on your record is going to make your credit plummet. In fact, it may go so low that you won’t be able to get a car loan again any time soon. You might even have to look on online auto auction software to even find a vehicle you can afford at that point. Can you imagine? Purchasing the car that was just yanked from your home at an online auction?
Your car goes to a dealer.
While some of the people who purchase vehicles are end users, many of them are actually purchasing with he intent of selling at a used dealership. There are even dealer auto auctions reserved specifically for people who run dealerships.
So now you know, if you get behind on your car payments there is a very real possibility that your car could get repossessed and sold into auction world.