CALCULATE YOUR PAYMENT
Knowing what you can afford is the first step to buying a car. Let us help you calculate your current expenses to find a payment that fits your budget.
WHAT CAN I AFFORD?
Multiple missed car payments do not go unnoticed by lenders. When premiums are unpaid for a certain amount of time, lenders exercise their right to a repo man. Each state has specifics for the regulations on repossessions, but the general law is that a repo man can find your car and take possession of it on the lender's behalf. The car is then returned to the lender at which point they can legally sell, usually by auction, the car to try to regain some of the money lost due to delinquent payments. Even though the lender is re-selling the car, it doesn't relieve you of your obligations to pay for your debt. You may be required to pay the difference between what the car is auctioned for and the amount of money still outstanding on your loan. Your credit will be damaged and you will have no vehicle. There are ways stop the repo man from coming for you if you have multiple late payments.
Contacting the lender to make adjusted payment arrangements is the best way to get your loan resolved. The lender may be able to adjust the terms of your loan to make your monthly payments attainable. The absolute best way to avoid the repo man is to pay off your overdue balance. If you have fallen behind on your monthly payments but now find that you can make those payments, pay everything that is past due. A repo man cannot break and enter to retrieve your vehicle. This means that a car in a car port or a driveway is easier to repossess than a car in a garage. If you are trying to buy some time to come and have full intentions on making a payment, moving it into a garage can slow the repossession process. This should not be considered a permanent solution but rather a way to give yourself a little extra time to gather money for a payment. Each state has different laws regarding hiding of your vehicle to avoid repossession. Some states consider it illegal and others do not as long as a court order for the repossession has not been issued. Know the laws of your state.
You can sell your car. If you sell your car and can get a price comparable to what you owe, you can pay off the lender with the sale money. Private sales often bring more money than auction sales so this a good option. You can file for bankruptcy. This option should be a last resort as it damages your credit severely and may keep you from obtaining any loans in the future. Once bankruptcy is filed, temporary holds are put on any collectors and eventually you may be able to renegotiate payments to your lender.
If you want to find out all of the ways to avoid the repo man, hire an attorney. A lawyer experienced in bankruptcies and credit issues can point you in the right direction and guide you towards the best decision for you and your credit. They will know the laws of your state and make sure that any payment negotiations or decisions you make are legal and in your best interest.
