Default on my down payment for my vehicle

by Amanda
(Phoenix AZ)

I just bought a new car and wasn't able to pay my down payment which is 1500 and now I may be sued! Can they take my vehicle even though I make my car payments every month? What can the collectors do? I am a waitress and I don't make much?! Also I am a mother of a two year old, what will happen to me? I have a full and complete explanation as to why I was short on my payment for the down payment! Please help with answers thank you amanda

Reply from DebtCollectionAnswers.com

We can't provide legal advice Amanda, but generally if you have a car loan that is secured by the vehicle and you don't meet the terms spelled out in the agreement, the vehicle can be repossessed.

Did you buy this vehicle from a private party or a dealership? Do you have a written contract? Have you read it to see what it says about default and the collateral? Have you tried to talk with them to work out a way to catch up on the amount by which you are behind?

There are rules that lenders must follow when repossessing vehicles. They vary by state. You may want to look into them (sorry we don't have complete information on that for every state). If they don't follow the rules, you may be able to get some negotiating leverage.