Five Ways To Avoid Vehicle Repossession
Ways To Stop Vehicle Repossession
- Refinance You Car Loan – If you are worried about vehicle repossession because you recently lost your job or experienced a salary cut and your credit score is still good, you may be able to refinance your vehicle and get a lower monthly payment.
- Ask For A Car Loan Modification – If you can see that you’re having trouble paying your car loan avoid a future repossession by asking for a modification of your car loan before you fall behind on payments. For example, if you have a car loan with 24 months remaining to pay, ask your lender if you can extend the term to 30 or more months. This can reduce your monthly payment significantly and help you avoid repossession.
- Ask For A Deferment – If you are falling behind on your car loan payments and fear repossession, consider asking your lender if you can skip one payment. Some lenders may be in agreement and tack the deferred payment onto the end of your car loan’s term. Therefore if you had 30 months to pay back a car loan, the deferment would make the new repayment time 31 months.
- Request A Late Charge Waiver – If you’re behind on your car loan payments by a few months, those late charges can really add up. A matter of fact if you fail to pay the late charges, the lender has the right to repossess your vehicle. However, the truth is that most lenders do not want to repossess your vehicle and would prefer to work out a compromise. If you can prove that waiving or reducing the late fees will help you get bring your car loan payments current, many lenders may be willing to waive or at least reduce those charges.
- File Bankruptcy – If you’re significantly behind on your car payments and other bills, filing bankruptcy may be your best way to avoid repossession. Both Chapter 7 bankruptcy and Chapter 13 bankruptcy offer viable options for debtors who want to keep their car.