Repossession
I have just recently separated from my husband. A few days before this occurred we made a large purchase and had 10 days to return the merchandise, so I had phoned the company within the 10 days to return the product and they wouldn’t take it back. Now I know that I cannot afford these payments and my spouse will not make the payments either. As our debts out weigh our assests as a separated couple. What if any are my options on dealing with this company?
Repossession? And what will that do to my credit rating?
There are really only 4 options:
1. Make the required payments.
2. Stop making payments, wait for the vehicle to be repossessed and continue to make payments on any shortfall.
3. Voluntarily surrender the vehicle and continue to make payments on any shortfall.
4. Sell the vehicle, remit all proceeds to the lender and take a loan out for the shortfall.
The two scenarios that have an impact on your credit are #2 &3, in both of these situations you will have an R8 listed on your credit history which means that there was a voluntary or involuntary return of merchandise. Now under any of these situations you may be able to negotiate payment terms, but what the lenders will accept is very difficult to predict.
Prior to doing any of the above I would suggest reviewing your purchase contract. If you dealer is certified by the Ontario Motor Vehicle Industry Council they are required to clearly disclose their return policy, all terms and conditions of the return policy, including the length of the return period on the original contract.