When you finance a vehicle you have certain rights, but so does the financial institution who gave you the loan. When you stop making your monthly payments, the financial institution may start the repossession process.
When this happens, a repossession company can come collect your vehicle from your property or wherever the car is parked. They are not required to obtain your permission, nor do they need your keys. If your car is repossessed, there is very little you can do to get it back, so make sure it doesn’t happen in the first place.
As soon as you know that you’re going to be late on a car payment, CALL THE BANK! Explain the situation and give them a definite date by which you can pay the bill. Ask if they will allow you that time to pay without repossession. They may grant your request, or they may tell you there’s nothing you can do.
It is also a good idea to go back and read your contract as well as the laws regarding repossession in your state. Laws vary depending on where you live, and some states have strict rules about when and how a bank can repossess a vehicle. For example, if you can prove a financial hardship and the necessity of your car, you may have some leeway as far as making late payments.
If you are unable to avoid repossession and the vehicle is taken, you still have some rights. First, you have the right to collect whatever personal property might have been in the car – CDs, after-market equipment, clothes, maps, etc. Call the lot to which your vehicle has been towed and make arrangements to pick up your things.
Remember that banks hate repossession. They have to auction the vehicle to recoup the money they lost in the transaction with you, and they would almost always rather make a deal to let you keep the car in exchange for a payment arrangement. Find out what they are willing to offer, or try to negotiate a deal for yourself. For example, you could offer to pay a smaller payment each month and extend the length of the loan.
The best plan is to be sure you never miss a payment. If there is nothing you can do to avoid missed payments, be sure to be proactive about calling the bank ahead of time.
Please help
I do not have a job, my car was repossed, I owe $2000, they told me if I pay they will return my car – payment must be done by Webster Union (very expensive, on top that I should spend less money) I was told to send money by Feb. 5th. I try to call but is hard to reach them, the last time I was half hour waiting.
My question now is, should I send the money without speaking with them – how can I be assured my car will be returned? What is the safest way so I am not cheated?
Hi Carlos,
The best way to make sure you are not cheated is to get any and ALL promises in writing. Via Fax, Email, or (preferably) Certified Mail.
Why not use the $2000 as a down payment and go buy another car?