Can they sued me if car gets repo?

Answer 1

There are several things to consider here:

1. When you purchased the car, the day you drove it off the lot, it depreciated dramatically. It was worth much less than the primary of the loan you signed.
2. You contracted to pay interest on the loan. You will owe much more than the car is worth, even if it remains in mint condition, with low millage, and in perfect working order. The loan amount will exceed the value of the vehicle.
3. When sold at auction, vehicles will go for only a portion of their actual worth.
4. When the vehicle was repossessed, there were addtional fees added to your original remaining balance owed. There may also be contracted fees and penalties added to the remaining balance due to your default.
5. All fees, penalties, and remaining balances from the original contract are typically per the contract the responsibility of the borrower.

Say you purchased a vehicle for $10,000. With even minimal interest, the final contract amount is going to be close to $20,000 or more over 5 years. Typical repossession fees can total several hundreds or thousands of dollars (recovery, storage, transport, auction, etc.). Say you paid $5,000 toward the principle, and the total contract amount with interest was $20,000. You owed $15,000. Now the repossession agency added an additional $2,000 in fees for recovery, storage, and transport. You now owe $17,000. The vehicle sold at auction for $8000, and that was applied to the loan, so you owe $9000. That amount will be collected. But, guess what, the cost of collection will be assessed to you too. And, if the collection agency is not able to secure the balance, the lender may choose to secure a judgment against you to further secure the loan and give them a longer period of time to collect it. And, the legal fees and court cost fall to you as well. Lawyers bill in the neighborhood of $150 to $1000 an hour. The original $10,000 you borrowed could now have ballooned to over $30,000.

Simple answer, yes. The lender may sue you if the car is repoed. Quite likely they will.