I am in a sticky situation. Over 2 years ago, I leased a car from VW on a 4 year lease. Almost a year ago I had crashed the vehicle, ended up not having comprehensive on my insurance, and the car sat in a tow yard. I also was unable to make payments in time due to just having too high of a payment with VW. I was very overdue at that point. Next, the car sat at the tow yard for too long that they auctioned it off. I realized I had GAP insurance on this vehicle and I now have to figure out how I can explain this to VW since I now have a charge-off on my credit report and need to settle this somehow. Does anyone have advise?
You will have to contact them (the lease finance company) and explain the situation and hope that they work out some sort of reduced payoff. Usually you can expect a lawsuit some time after the vehicle is auctioned. Sometimes the suit does not come for a year or two because the debt may be sold to a collection agency or law firm. If and when you are sued, which again is highly likely, the suit will contain claims for attorney's fees, which can quickly escalate to thousands of additional dollars that you will end up owing. I would attempt to resolve the matter before this debt increases exponentially. There are attorney's around who handle this type of work, however do your research. Best of luck.
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