How can I stop my car from being repossessed?
Falling behind on bills is a stressful and terrifying position for people to find themselves. Adding in a car loan makes those feelings exponentially worse. If you find yourself in a tough financial circumstance, you might be wondering, ‘How can I stop my car from being repossessed?’ There are in fact some things you can do to not only prevent repossession but also to mitigate the damage that could be coming to your credit history. Our team did a little homework and reached out to some financial experts to get some advice. Let’s take a look at what they came up with.
READ MORE: When should I get rid of my car?
Get ahead of the problem — If you know you’re going to be short of money to make your monthly car payment, contact your lender as soon as possible. It’s better to go to them, rather than have them come to you. It may be possible to work out an extension, modified payment arrangement or another solution.
Refinance the loan — Another lender may be willing to work with you to provide more time to pay off the loan or otherwise find more favorable terms. Essentially, this route will have you taking out a new loan to pay off another. But if this loan gets in trouble, repossession may be unavoidable.
Sell the car yourself — If you think you can sell the car for enough money to pay off the loan, this is a viable option. You might even be able to sell the vehicle, pay off the original loan and have enough to put down on a different vehicle so you don’t have to go without a reliable ride.
Voluntarily surrender the vehicle — In the event you can’t find any other workable solution, voluntarily surrendering your vehicle might be your best option. Going this route will certainly still have a negative impact on your credit score, but it won’t be as bad as having the vehicle repossessed.
If there is something Carizma Motors can do to make things easier, make an appointment with one of our product experts today.