Los Angeles is known for its car culture, and if you are used to having a car or otherwise having a hard time getting around, it is easy to get sucked into buying your own auto. Just remember, other than buying a house or condo, purchasing a car may be the most expensive item you ever buy. BEFORE YOU DO, consider if it is something you can truly afford especially when you factor in the cost of car insurance which is required in California. This means monthly payments that can easily top $350, plus of course, gas and the cost of repairs and upkeep.
If you fail to make even one payment or otherwise breach your loan contract (like letting your car insurance lapse), the lender can have your car repossessed without any notice to you or a court order. AFTER the car is repossessed, which can happen in any public area, including a parking lot or in front of your house, only then is the lender required to provide you with legal notices. But you must act quickly to get your car back.
Deficiencies in a Car Repo
If you decide you can’t afford the car and just let the lender keep it, they will turn around and resell the car at an auction and most likely at a loss (which means they sell it for less money than what you owed), and will send you a bill for the difference. This is called a deficiency and it is still a financial problem for you since you are liable for their loss.
For more information visit:
Los Angeles County Consumer & Business Affairs - Vehicle Repossessions
Department of Consumer Affairs - Consumer Guide to Vehicle Repossession
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