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AVOIDING REPOSSESSION
If you do not make payments on your auto loan, your
car will be repossessed. This means that your creditor
will come and take your car. Your creditor is not
obligated to notify you and can take your car at any
time. A 'repo man' will usually come in the middle of
the night or early in the morning, when you least
expect. If you want to get your car back after it
becomes repossessed, you will have to pay the balance of
your car loan as well as the cost for towing and
storage. If you can not afford to pay, the creditor will
sell your car. Your car will become repossessed if you
fall behind on your payments for three months.
How can I avoid having my car repossessed?
There are several things you can do. If you can not
afford to pay your auto loan, talk to your lender. They
would rather work out an agreement and have you pay your
loan than repossess your car. In the long run, your
creditor will likely lose money by repossessing.
Another option to consider if you think that you are not
going to be able to make your car loan payments, is to
sell your car and eliminate your auto finance debt. This
will help you avoid all of the costs associated with
repossession as well as the hit your credit would take
as a result.
Deal with this issue! Be smart!
Don't think that if you hide your vehicle that you
can avoid having your car repossessed. Doing this will
only delay the process and will end up costing you more
money once they finally catch up with you.
**If you are having issues with paying other debts, we
suggest you read about
developing a financial strategy to help you help
yourself.
More
Auto Loan Advice:
Filing for bankruptcy will not eliminate you from
your auto loan obligation. Taking out
an auto loan that you can not afford can result in
repossession. We suggest that you use the
car loan calculator to help determine what you can
afford.
Being upside-down on your auto loan means that you
owe more for your can than it is worth. Leaving a down
payment of at least 15% should help avoid this. |
