Third Coast Auto Group Official Blog
Vehicle repossession may be avoidable if you act quicklyBy Product Expert | Posted in FAQs, News on Wednesday, May 26th, 2021 at 12:32 pm
Can I stop my car from being repossessed?
Precisely zero people in the history of the explored universe have wanted to lose a job or have their income interrupted. When that happens and people start falling behind on bills, the anxiety is almost immeasurable. Few things will be more terrifying for people who aren’t currently working full-time than the thought of having their vehicle taken back because they have fallen behind on payments. If you’re wondering, ‘Can I stop my car from being repossessed,’ Third Coast Auto Group is ready to help. Unfortunately, there are no hard and fast answers that will apply to everyone. Each of these steps are only a few of the options available to vehicle owners. Some people may need to try a few of them. Let’s take a closer look.
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Contact your lender immediately
The best thing you can do if you think you are going to miss a car payment is to go on the offensive. Reach out to the bank, credit union or whoever holds your car loan. Both parties may be able to come to some kind of temporary agreement that will prevent repossession from happening like modifying the payment schedule or pausing payments through forbearance. Taking back a vehicle from an owner is a costly process and most financial institutions want to avoid it as much as the owner does.
Try to refinance the loan
Banking is a business just like any other with one trying to draw customers from a competitor. Refinancing a vehicle with a new bank could bring lower interest rates and wipe out the original loan. However, it’s important to remember that refinancing doesn’t pay off the vehicle, it just switches the entity that someone will own money to. This route should only be taken if the vehicle owner is positive that they will be able to keep up the new payments.
Voluntarily surrender the vehicle
Vehicle repossession is absolutely devastating to a person’s credit history. It can take several years to recover from that. If someone is completely out of options, they can always choose to voluntarily bring the vehicle back to the bank, or whoever holds the loan. Make no mistake, surrendering a vehicle is also bad for a credit report, but it’s better than repossession. Additionally, financial experts suggest that a voluntary surrender could give the owner a little leverage in reducing or eliminating certain fees or remaining balances after the vehicle is resold.
If you’re in a tough financial spot and need help finding a safe and reliable vehicle, make an appointment with a Third Coast Auto Group product expert today.