Does not paying on a reposession damage your credit?

I had a car repossessed about two years ago. After it was auctioned I started paying a reduced monthly payment on the leftover balance which is now $8,000. When I went in to buy another car, the car salesman told me that I was wasting my time making payments because it wasn't going to help my credit score and since the reposession already been reported, it wouldn't damage my credit either. He said I was doing the right thing by paying money that I owed, but that it wasn't going to have an effect. Is this true?

Answers:
Ask the car salesman what his credit looks like, I'll tell you : "It stinks".

If you don't satisfy the deficiency balance, the creditor will sue you, prevail, and likely garnish your wages or attach any property you have. Trust me, they are persistent, and they will collect their $8,000.

Stop taking financial advice from broke people. Pay cash for your car, do not go into debt.

Start acting your wage.
He's right I'm afriad, once you've been reported it's very hard to come off the list. Just pay it back, keep your nose clean and maybe things will turn around (I think it's about seven years after you've finished!)
The reposession will remain on your credit report for the next 7 years whether you pay the balance or not. It will continue to negatively affect your credit score until it goes away. If you plan on purchasing a home or any other major purchases within the next few years, then you should continue to pay the remaining balance. If you don't plan on making any large purchases or applying for any other types of credit, then it won't have matter.
It won't really affect your credit, unless they sue you and get a judgment...then you'll owe $8k + $1-2k in legal fees + interest on the judgment.

If you've already worked out payment arrangments with them, not paying is a great way to get yourself sued, and they were nice enough to grant you payments instead of suing you.

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