Do you still have to pay on your repossessed car or what happens?

When you fall behind on your car payments the bank will put out a repo notice, you then have so many days to contact the bank and either make payment arrangements with them to pay back the money you owe, or to pay off your loan in full.

If you do not contact the bank, or if it's already been a while since they repo'd your car, what happens next is the bank sends your car to an auction.

They will then auction your car, and for example say they get $10,000 in the auction, but you still owe $15,000 on your loan... the amount that you will still owe the bank would then be $5,000 plus the fee for the auction, the fee for the towing company who picked up your car and any storage fees, plus the money you defaulted on in the first place... for example 3 months of car payments that you were behind.

They will send you out a notice to your last known address telling you how much you owe, how much they got in the auction, the balance after the auction, and then the fees I mentioned added on top of this.

You will have so many days to pay them this amount, if you don't they will put this onto your credit report and in some cases they will take you to court to sue you for the balance remaining.

The judge will then order you to pay the money, or to make payments, if you still don't comply you could then be found in contempt of court and face additional fines and even jail time.

It will now be very difficult for you to get another car loan from anywhere for the next 7 to 10 years since they will see your repo as soon as they run your credit report and with the way our economy is these days, there will not be a bank willing to put their money up on a loan to someone with a bad record of not paying back what they borrowed in the past since no bank will want to take the chance on losing their money too.