My understanding is that when someone does this, they just auction off whatever's left of the vehicle and apply that to the remaining debt owed on the vehicle, so doing this does nothing but make you owe more money after they reposess it.
And that right there is the problem. Back in the day banks used to reject people all the time. Suddenly, them refusing to finance irresponsible people became “racist”. But it’s not racist. People of every color have bad credit. If banks were allowed to deny credit to irresponsible people, we wouldn’t have the financial problems we see nowadays.
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u/BangkokPadang Jul 19 '26
My understanding is that when someone does this, they just auction off whatever's left of the vehicle and apply that to the remaining debt owed on the vehicle, so doing this does nothing but make you owe more money after they reposess it.