Vehicle Repossession: How to Avoid it

Apparently, avoiding vehicle repossession can be achieved by just making the payments on time. Life tends to throw us a curve, and we find ourselves in awkward, embarrassing situations. Fortunately, we have a potent weapon against things such as repossession, and it is called a telephone.

While “no news is good news” applies in many situations, it doesn’t affect in the lending world. When we don’t hear anything from a person once a payment becomes overdue, we try to contact them. In many situations, the person ignores the phone calls.

When this happens, we have no reason to believe anything other than they are irresponsibly neglecting the agreed upon payment and have therefore defaulted on the contract.

It is indeed how those who seemed to have forgotten how to contact us, suddenly remember just moments after their automobile has been repossessed. And it is at that time they explain their situation. Most of the time, we, like most other lenders, want to work something out with them to complete the contract.

Had they been more forthcoming and honestly leveled with us up front, likely as not, something could have been arranged. However, they chose to evade our attempts to contact them and made no effort whatsoever to communicate with us. In business, failure to notify is terrible business. Most companies will work with people experiencing setbacks.

Once you develop a reputation of distrust, it is difficult to regain that trust. But some people are severely embarrassed by financial setbacks and rather than admitting their problems and trying to work out a solution; they just ignore it as if they’re hoping it will go away. When it comes to not being able to make your car payment on time and failing to contact us, the only thing that will go away is your car.

When purchasing a car, you should ask them for a buffer clause in the contract for situations where your financial situation might take a wrong turn. Some deals can include conditions such as allowing you one month out of a year to skip a car payment.

There are other options available when a person finds themselves in a financial bind. One is where the company allows you to skip a month and pay extra each month until you catch up. Early communication is the key to avoid repossession. Don’t wait for them to contact you. Call them and let them know you are having a problem.

In conclusion, preparedness is one way to help you avoid repossession. Make an effort each month to pay a little more than the minimum car payment to build up a sort of pay equity. In the event of financial strain, you can fall back on this investment while you get a grip on your situation.

Otherwise, the charges you are going to face when having your car repossessed can be overwhelming. Therefore, when faced with knowing you won’t be able to make your payment on time, calling us will go a long way in avoiding vehicle repossession.