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Rapper and producer Jermaine Dupri's Lamborghini is causing the star a whole lot of trouble. Premier Financial Services, the company that loaned him the money to purchase the exotic ride, has sued Dupri.
The car was worth around $330,000 when it was purchased new in 2006. Dupri originally used a finance plan but stopped making payments in 2009.
Dupri has been in the public spotlight for both his personal and private life. He famously collaborated with Mariah Carey and dated Janet Jackson. Yet perhaps even he couldn't scrape enough cash together for the luxury vehicle's $4,323 monthly payments.
The car was repossessed and then sold for $115,000 to pay off the debt. Premier Financial Services claims that Dupri still owes them around $80,000.
Creditors, like Premier Financial Services, own a legal interest in the car. That's why they are legally entitled to respossess the vehicle if the owner falls behind in payments.
However, just because the car was repossessed doesn't mean the owner has to kiss their ride goodbye. In some situations, owners can buy back the car. This is called "redemption." Redemption usually requires owners to pay back the entire balance of the loan that's due, as well as any repossession costs.
Redemption is fairly rare. Owners that fall behind in their car payments usually don't have enough liquid assets to pay back the loan.
The rapper has faced a tough financial year. He faced foreclosure on his Atlanta home in April, though he reportedly managed to work out a deal to keep the property. He was also behind on his tax payments, and faced allegations that he owed child support, reports Contact Music. Jermaine Dupri's Lamborghini woes may actually be the least of his problems.