Is it best to let my car go to auction?

If it goes to auction the lender will sue for you for any losses. This could be disastrous because the auction could bring a price much lower than you could sell the vehicle for. Be careful. You might need to consider bankruptcy if you have other financial problems. But, please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.

Your credit rating will be significantly lower and, when the car is sold and does not clear the debt they will sue you for the shortfall. If you can retrieve the car you may be better off in the long run.

You have a couple of options once your car is repossessed. One is to try to get caught up on payments and reinstate the loan. Your lender may or may not let you do this. You can also try to redeem the vehicle for the full value. The last option is to let the car go to auction. If this occurs and the car is sold for less then you owe, you may be responsible for a deficiency judgment to make up the difference. This will show up on your credit report along with the repossession. Once your car is repossessed you have already damaged your credit no matter what course you pursue. It will stay on your credit report for up to seven years and all lenders will be able to view it. If you wish to try and get your vehicle back, contact an attorney as soon as possible.