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Chicago, IL 60603
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Inability to afford car payments
Question: I am no longer able to afford my car payments. I would like to take the car to Carmax and sell it. I think I will get more than if it is repossessed and sold at auction. Can I do this?
Answer: Generally if you find yourself unable to afford a car, you are much better off selling it than allowing it to be repossessed. This is because repossessed cars are sold at auction for low prices. The creditor/ secured party is entitled to the proceeds up to the balance owed. If the creditor refuses to cooperate with a commercially reasonable disposition that protects its interests, it may forfeit its right to any deficiency, or incur substantial statutory damages.