Repossesion of a vehicle and credit rating and settling?

last year i was buying a vehicle from a dealerhsip, after being told the finance company would not accept me, i said ok i will be down to pick up my vehicle. papers had already been signed, they told me they would be shredded. the next day when i went for my vehicle they told me they talked the finance company into accepting me. i was mad but they refused to return my vehicle. after long talks with the finance company they agreed ot repo the car...i did not understand what this ment to my credit rating. they told me i was not begin help reliable and all was done. they now have come back on me and told me they want me to pay and are sending me to collections. they are willing to settle for $5000 instead of the $12000 the say i owe. i showed them emails of my coresponding with their company and they told me they feel it was not all my fault. they will settle for $5000 and put vuluntary repo on my credit report...should i settle for this? is this smart? its still on my credit report

Repossesion of a vehicle and credit rating and settling?
Auto finance is what I do for a living and I am confused. If you went back and were told that you were approved for the car that you wanted to buy in the first place, why did you allow it to repossess?





Sounds to me like you are the one to blame for this whole mess.
Reply:You didn't understand what a repo would do to your credit? What is "begin to help reliable"?
Reply:you messed up. a reposess is one of the worst items to have reported to credit. it will be reported to all three bureaus and decrease all 3 of your credit scores approx 110pnts. try to pay the balance. once you have paid it, contact the credit bureau and "dispute the balance." once the credit bureaus finish disputing, the collection account shall be REMOVED from all three reports. you scores will rise slighty.





Ex-employer of Transunion National credit bureau
Reply:You can settle if you want. Voluntary or involuntary repo does not matter becasue there is no difference when it comes to credit reporting. This is a trick to force you to pay. GMAC did this to me before. I would ignore the settling part. What will happen is they will auction off the car and you will owe the difference between the auction price and what was owed on the car. If you do not pay that difference it will go on your credit report as owed. The damage to your credit has already been done. When I read this I was not sure why your car was repo'ed when you were trying to buy one??? If the 5000.00 will allow you to get the car then that would make a difference. But it seems you will not have the car whether you pay or not, so that is a consideration. Best of luck with this.