How To Recover From Car Repossession In Bronte
How To Recover From Car Repossession In Bronte
Posted on June 11, 2021
Having your car repossessed is not a situation anyone wants to be in. Not only do you lose your car and your means of getting around, you could be facing legal action, a serious hit to your credit score and perhaps difficulty getting credit in the future. This is why it is important to know how to recover from car repossession.
But if that happens, what do you do next? Can you get your car back if it has been repossessed? Our Hagersville car loan team explains.
How To Recover From Car Repossession
Lenders will only repossess the car as a last resort. If you have missed payments and not come to an agreement with the lender, they will apply for a repossession order only once they have exhausted every other means of remediation.
When it happens, you have a few options to get your car back.
Reinstate the auto loan
Some lenders will consider reinstating the auto loan as long as you pay everything so youāre back up to date and cover any legal fees incurred by the lender. Some wonāt go this way because things have progressed too far, but some will.
Youāll face potential legal fees, collection and storage fees and give you a specific deadline to pay the money.
If you pay up in full, the lender will allow you to collect the car and resume the loan.
Pay off the loan in full
Some lenders will also allow you to redeem the loan if you pay in full. Again, some lenders will and some wonāt. you wonāt know until you discuss it with them.
Also, you will face legal fees, collection and storage fees and perhaps other fees too.
Youāll have to make a lump sum payment to settle the loan in full within a given timeframe. Once done, your lender will allow you to collect the car from storage.
Buy the car back
Once a car has been repossessed, it is usually sent to auction. Some lenders will tell you which auction they use while others wonāt. If you can find out, you can attend the auction as a private buyer and bid on the car.
Auctions are cash businesses so youāll need the full amount to be able to buy the car. Auction fees will also be payable depending on whether itās the seller or buyer liable for them at that particular auction.
Some lenders have arrangement with bulk car companies who will buy trade ins and other cars from lenders. If you can find out who buys them, perhaps you can negotiate a price.
Car loans in Hagersville
All of these options are much more expensive than paying the loan in the first place. If youāre having difficulty with payments, discuss it with your lender before you miss one.
Debts donāt go away. Stuffing reminder letters into a drawer does not make them disappear. The only way to manage debt is to face it, make peace with it and work your way out of it.
When youāre ready for a car lease or loan, get in touch with the Hagersville auto loan experts at Northway Ford for great deals on auto finance.
Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!