Do finance companies normally repo electronic equipment or do they try to...

[Acroblast]

...negotiate a price with you if defau? When you finance a purchase of an electronic item and then default on the payment 8 months later , does the finance company normally come over and repo the item even though it is virtually worthless?

My situation: I bought a projector and a digital camera costing 2500 dollars for my business in January 2007. It was a "kind of" secured loan , the agreement stated that the finance company would repossess the item if I default but no lien was registered against the equipment . Now I have stopped paying the monthly payments. The equipment is in good condition but it's resale value is only about 800 dollars. I know that hiring a bailiff probably costs a couple hundred dollars and the finance company doesn't know that the equipment is OK.

Do you think the finance company will actually repossess the item or should I try offering them a lowball figure in lieu of the items?

Anybody face this before?

[G. B.]

Repo is possible under the law, but highly unlikely. 99% of lenders would rather renegotiate the terms, and in many cases, take 10 cents on the dollar of the balance than be stuck with used electronic equipment. They truly want the $$$, not your camera.

Make the offer...can't hurt. If they refuse, tell them "lots o Luck" recovering the camera - I don't know where it's at at the moment.

[rainfingers]

Tell the finance company you can't make the payments and want to negotiate a new payment plan. After all, what they want most is to get their money back, even if it takes longer than they planned.

Even if they went to all the trouble to repo the equipment, I doubt that used electronics would hold much value to them. What would they do, sell it on eBay? I don't know much about repos, but it seems unlikely.