What to do if you’re facing car repossession?
If you are facing car repossession, you may feel like you are alone in the world. The good news is that there are resources available to help you through this difficult time.
According to bankrate.com, new car owners are paying a monthly average of $648 while used car owners are paying a monthly average of $503.
In this blog post, we will provide a guide for the unknown on how to handle car repossession. We will discuss what to do if your car is repossessed, how to get your car back, and what your options are if you can’t afford to repay your loan.
Don’t worry – we’re here to help!
How do Repossession agents work?
If you’re late on your car payments, the bank or lender may hire a repo agent to come and take your vehicle. Repo agents are typically bonded and licensed by their state, which means they’ve gone through a background check and have a clean record.
To find your car, the repo agent may use a GPS device or even ask your friends. However, they will most likely just drive around until they spot it. Once they find your car, the repo agent will hook it up to their tow truck and take it back to the lender.
What to do if your car is at risk of being repossessed
If you’re worried about your car being repossessed, the best thing to do is contact your lender as soon as possible. let them know what’s going on and ask for their help.
Most lenders will work with you to come up with a solution that doesn’t involve repossession. This might mean coming up with a new payment plan or extending the loan so you have more time to make payments.
If your lender isn’t willing to work with you, there are other options available, such as selling your car or refinancing your loan.
Whatever you do, don’t ignore the problem or try to hide from your lender. They’re more likely to work with you if they know what’s going on and you’re upfront about it.
If your car has already been repossessed
If your car has already been repossessed, you’ll need to retrieve it from the lender. This usually involves paying a storage fee, as well as any outstanding balance on your loan. In most cases, you’ll have to make arrangements with the lender to pick up your car. This can be a difficult and stressful process, so it’s important to be prepared.
One of the first things you’ll need to do is contact the lender to find out where your car is being stored. You may also be able to find this information online.
Once you know the address, you’ll need to make arrangements to have your car towed or driven to your location. In some cases, the lender may require you to use their own tow truck service.
If this is the case, be sure to get quotes from multiple providers so that you can compare costs.
Once you have your car, you’ll need to pay any outstanding balance on your loan, as well as any fees associated with repossession. These fees can vary depending on your lender, so be sure to ask in advance.
What to do if you can’t repay your loan?
If you’re struggling to make payments on your car, you may be faced with the choice of negotiating with your lender or having the car repossessed.
In some cases, the repo agent may be able to sell your car at an auction and use the money to pay off your loan. If you still owe money on your loan after the sale, you’ll be responsible for paying the rest.
Each option has its own risks and rewards, and it’s important to weigh your options carefully before making a decision.
Negotiate with your lender
In some cases, you may be able to negotiate a lower price if you’re willing to make a lump-sum payment. If you negotiate with your lender, you may be able to come to an agreement that allows you to keep your car.
However, if you’re unable to reach an agreement, you may still end up having your car repossessed.
Selling the car yourself
You may also want to consider selling the car yourself to repay the loan. This can be a good option if you’re upside down on your loan (owing more than the car is worth).
It’s important to remember that you’ll likely get less for the car than you would if it were sold at auction. Ultimately, the best option for you will depend on your individual circumstances.
How does car repossession affect my credit score?
A car repossession will damage your credit score in a few different ways.
First, the act of repossession itself will be noted on your credit report. This is generally considered to be a negative mark, and it will lower your score.
Additionally, the late payments that led up to the repossession will also be reported, further damaging your score.
Finally, once the repossession has occurred, you will likely find it difficult to obtain new financing. This can limit your options for transportation, and make it more difficult to rebuild your credit score.
In short, a car repossession can have a significant impact on your financial life, so it is best to avoid it if at all possible.
How can Roundleaf help
Roundleaf is a debt relief company that is here to help you. We understand that dealing with a car repossession can be very stressful. You are not only dealing with the stress of losing your car, but the stress of not being able to get to work and possibly losing your job. This can be a situation that takes you down a rabbit hole no one wants to be in.
We are here to help take some of that stress away.
Roundleaf can help you negotiate with your lender to help you get the best settlement deal. Settling with your lender can prevent you from having a repossession on your credit report.
However, Settling with your lender can be difficult and may even include lawsuits. It is best to have someone who is professionally trained to handle those situations for you. For more information on how Roundleaf can help you settle and why you should hire a professional check out the article, Credit card debt settlement: Life of certified negotiators
If you’re facing car repossession, remember that you have options. By taking the time to understand the process and your rights, you can make the best decision for your situation. Call Roundleaf for a free consultation!
How does the Repossession agent find my car?
If your at risk of getting your car repossessed a repossession agent may use a GPS device, ask your friends, or drive around the area you live in until they spot your car.
How do I know if I'm at risk of having my car repossessed?
If you’re late on your car payments and worried about your car being repossessed, the best thing to do is contact your lender as soon as possible to figure out the status of your loan. Typically the repossession process doesn’t start until you are in default which is 90 days late on your payment.
What do I do if I cant afford to get my car back or repay the loan?
In some cases, the repo agent may be able to sell your car at an auction and use the money to pay off your loan. If you still owe money on your loan after the sale, then you will be responsible to pay the rest. You can also look into negotiation with your lender on the amount you owe or selling the car yourself to repay the loan. If you are thinking of selling it yourself make sure to contact your lender to find out the legal steps of doing so.