What's the difference between a charge-off and repossession for car loans?
I know both involve trouble making car payments, but how do they differ?
“When a car gets repossessed as the result of payment delinquency, the lender will sell the vehicle and put that money toward the balance of the loan.
A charge-off means that the lender has determined your debt to be uncollectible, but you’re still in ownership of the vehicle. As a result, you can sell the vehicle if it helps you gain the funds you need to pay off a portion or the entirety of the loan. “
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