If you’ve ever had your automobile repossessed, you know what a terrifying experience it can be. When you stop paying payments on your car, the financing company takes custody of it and repossesses it. The lender will take action against you to recover their investment, regardless of whether it was an accident or anything beyond your control. If this happens to you, don’t panic: there are steps you can do both before and after repossession to ensure you never lose control of your vehicle again.
What A Repossession Is
When a lender takes back an automobile that was purchased with a loan, this is referred to as repossession. It differs from a foreclosure, which occurs when you fall behind on your mortgage payments and it goes into foreclosure. And it’s not like what you see in movies: a repo man snatching your car because you haven’t been paying for it.
Repossession can occur if you fail to make payments on time or at all; if there is a loan violation; or if there are other issues with the loan itself–for example, if someone else has taken out loans against your vehicle without informing anyone else.
How To Avoid Being Repossessed
If you can afford your payments, you won’t be repossessed. According to lawyer Nathan DeLadurantey, you should also have adequate money for repairs, insurance, and petrol.
It’s important that you have enough money set aside for car maintenance as well, because if something goes wrong with the vehicle and it needs fixing, then this could put a strain on your finances at an inconvenient time when payments are due.
Where To Find More Information About Repossession
Check the law if you have further concerns about repossession or Nathan DeLadurantey if you believe a car repossession company has violated your rights. Determine if your lender’s tactics have been reported by contacting the police. If so, they may be able to assist in resolving the situation without resorting to legal action. If a lender informs your insurance company of a repossession, they may be able to assist.
In some instances, particularly with subprime lenders, insurance companies will deny coverage due to suspicions of fraud on the part of these lenders or dealerships. After paying rent/mortgage and utility bills each month, there are ways for consumers like yourself to save money.