What happens after a vehicle is repossessed?
The lender sells the vehicle, sometimes at auction. They attempt to get whatever they can for it. Often the price the lender gets is less than the outstanding loan. If the lender gets less for the vehicle than the amount that is owed, the lender will seek the balance (the difference between what was owed and what they sold it for) from the borrower. So, lets say you bought a car for $1000. You quit making payments. You still owed $800 when the vehicle was repo’d. The lender sells the vehicle at auction and gets $500 for it. The lender will come after you for the remaining $300. That’s pretty much how it works. Bottom line: make your payments. This is where aflac comes in handy.
