Imagine that you have gone outside to drive somewhere, and you car is gone. If you have fallen significantly behind on your payments, there is a chance that it has been repossessed. If you find yourself facing possible repossession, keep the following in mind:
1. Repo men don't always strike at night.
Don't think that hiding your car at night will keep it safe from repossession. The truth is, many acquisition firms will come during the day, at your work, or anyplace at any time to take back the property. Preventing them from taking your car may result in increased fees added on to your bill for attempted repossession efforts and interest charges.
2. They will leave the plate behind.
Don't worry about your license plates; repossession firms typically leave the license plates behind. If you are certain that you are relinquishing your vehicle, go ahead and remove the plates. Don't remove the insurance coverage, however, until the car is actually no longer in your possession.
3. Keys can cost.
Not having the key to your car won't stop repo-men from taking the vehicle, but withholding the keys from the lien holder or bank could end up costing you more in the end. Some cars have distinctive, pricey remote-style keys that can cost upwards of $300 to replace. Simply handing these over to the bank or repossession firm can eliminate additional charges from being incurred when the car is eventually resold.
4. You can buy it back.
Even if you do find that your car has been repossessed, you will have an opportunity to buy it back. Usually, you can pay the overdue payments and any repo charges, interest, or fees that have been tacked on, before the car goes to auction or is resold. You also are notified of when your vehicle will be put on the auction block, and you are permitted to attend to bid and buy back your automobile.
5. You may still pay, without your ride.
If you do decide that you won't be trying to get back your relinquished vehicle, you may not be out of the woods yet. If the car is resold and doesn't bring in the amount of money that is still owed on the original car payment, loan, or sales agreement, you can be sued for the difference between the sale price and the loan balance. Depending on how much equity you have built up in the vehicle, as well as the condition of the car, you may have a hefty balance even after the car has been repossessed and you will be expected to pay.
A repossession will stay on your credit history for years to come, and can impact your ability to borrow funds, rent a place to live, and sometimes even securing a job. Working with your banker or the lender is the best approach to take when you find yourself falling behind on payments. Keep open communication with these creditors to find a solution that is satisfying to all involved.
For more information, contact a company like Juniata Valley Bank with any questions you have.