Well, now you’ve done it. You are three months late on your car payments and the bank is threatening to come and physically take back your vehicle if you do not immediately make your payments that are due. They are not being polite anymore, and they are not fooling around. You are in a panic, wondering how you will get to work without your car, but you don’t have the full payment required to make the bank happy. The situation seems hopeless, but is it? Not really. There are some things you can do to try to avoid repossession of your vehicle.
Obviously the first thing to do would be to avoid becoming so far behind in your payments, but if you is facing repossession it is too late for that kind of advice. Now you need to know how to get out of this with your car still in your possession, so let’s focus on that. You need to be aware that legally you could be charged with vehicle theft if you try to actually hide your vehicle from a licensed repossession agent. Hough they rarely pursue a vehicle to this point, a lender can actually report the vehicle stolen if you do not make your payments and then conceal the vehicle somewhere in order to avoid repossession. With that in mind, you have a few options.
First, if your lender accepts any payments from you at all, they are in effect agreeing to a partial payment being sufficient for the moment. This status changes as each day passes, so you can’t expect a payment you make on Monday to hold off the repo man until Friday, but it will hold him off until at least Tuesday. In the meantime, try to negotiate a re-payment or re-financing arrangement with your lender if they are willing to talk with you, keeping in mind that what your lender truly wants is your money, not your vehicle. Offer to sign a contract with a higher interest rate, or with a longer term that covers the amount of the payments that are outstanding, but starting over at the current date so that the loan is once again current. Many lenders are willing to do this, but only once.
During negotiations, be polite and do not give your lender any reason to refuse your request. Be honest about whatever financial situation brought you to this point, whether it was the loss of a job, medical issues, or other factors that caused you to miss your payments. Often, explaining your circumstances will help your lender to be sympathetic and more willing to work with you to resolve your issue.
Ultimately, do not give up. Sometimes it seems more stressful than it is worth to keep fighting for your vehicle, but obtaining another vehicle loan after having a vehicle repossessed can be extremely difficult, so preventing repossession of your current vehicle is your best bet.