It can be a sobering experience to wake up in the morning and realize that your vehicle is gone. When you are behind on some car payments, this may be a reality. As you look to put payment plans into place and get back up to date on your balance, make sure that you do all that you can in order to do just that, while also understanding rights and following tips for avoiding car repossession.
#1: Get Your Car Loan Situation In Order First
Since the root of this issue is being delinquent on your car note, getting this in order is the first decision that you need to make. First and foremost, be sure that you reach out to your financial institution to explain your situation. By simply letting them know what is going on, you will buy yourself more time, typically. For instance, they can put you on a payment plan, temporarily lower a payment, postpone one payment or even restructure your loan. Working with them will make them more likely to work with you. Keep in mind that late payments may still adversely affect your credit score as you get your financial situation in order.
#2: Park Your Vehicle Inside Of The Garage
When it comes to car repossession, it is important to note that it is illegal for them to take your vehicle if it is parked on your private property. This makes parking it inside of a garage or another structure one of the best things you can do. You should also understand that if the vehicle is not readily apparent after car repossession companies, such as Tri City Towing And Recovery, make a few visits, they will be able to go through the court system in order to obtain the vehicle, so this is not a long-term strategy.
#3: Understand Your Rights Of Car Repossessions
To be sure that you are able to stay free of car repossession, you will need to know your rights. This means looking up the codes relevant to car repossession in your state or other municipality. You should also be sure that you look into your entire situation, as filing for Chapter 13 bankruptcy might be a good option if your issues extend much further than just not being able to pay your car note. This would involve touching base with a credit counselor and a bankruptcy lawyer to find out for sure.
Consider these three tips if you are facing a car repossession.