Legal Question in Consumer Law in Washington

Re: Car Ownership

Yes, if you stop paying, they can repo�ed and they can sue you for the costs of repossession, interest, and many other sorts of legal costs and fees.

Technically under the law, you are the registered owner of your Volkswagen and as such, the law allows you to possess the title. However, the bank or financial institution you are making loan payments to has a lien on your car, which gives they some rights over your car. (In some states, only the DVM or the bank can possess a title for a vehicle currently under a loan).

I suggest that you look very closely at your loan documents. That paperwork is required under Federal and state law to spell out the creditor�s ownership interest in your car. Also, one of the things usually included in these documents is the granting of advanced permission by the debtor (this is you) to allow the creditor (this is the bank) to take the car back if you default. So, if you stop paying or fail to pay on time, the creditor will usually repossess your car, send it to auction, and sell it to recover their loan money.

Repossession severely screws up your credit for many years to come and it will cost you more money that you can imagine. The bottom line is, try to avoid defaulting and having your VW repossessed.