Car Repossession

Car repo also known as car repossession is when a creditor takes back possession of a vehicle that a person has stopped making their scheduled car payments. Usually a lender will wait until a person has missed three scheduled car payments, but a person must be careful to read their contract because in some cases a car repo can take place after just one payment is late. This can be a source of great frustration for a person who has suddenly become unable to make their car payments. If you are in this situation, there are ways to avoid auto repossession.

What is the process that is involved in a car repo? A lender may or may not give any warning that the vehicle is going to be repossessed. The lender will hire a "repo man" who will stake out the vehicle and tow it away when the owner least expects it. The repo man's objective is to remove the vehicle without being detected by the owner to avoid a confrontation. A vehicle's delinquent owner could come out of work one day and find their vehicle has disappeared.

Next, the lender will resell or auction the vehicle off. The amount of the sale may offset the cost of hiring the repo man and preparing the car to be sold including replacing the ignition lock and cutting a new set of keys. Then any remaining profit may be deducted from the former vehicle owner's loan amount and the person is now responsible to pay the debt. Many times the person who has had their vehicle repossessed ends up owning close to the purchase price of the vehicle that they no longer have possession of. This makes a very good case for purchasing a vehicle that fits well within a person's budget and doing whatever is possible to keep the payments current.

Top Auto Repossession Articles

  • Avoid Auto Repossession
    • Want to avoid the Repo Man? Auto repossession, also known as car repo, is not something you should have to worry about constantly. It is important to be aware that you have options. 1. If you own $1500 or less, you may want to get a Cash Advance Loan. They have helped some people make Read More

  • After a Repossession: How Can You Get a Loan?
    • Just because you have had a car repossessed doesn’t mean you can never get another car loan. The best idea is to wait as long as possible before trying to secure another auto loan, but if you simply cannot wait for new transportation you do have options. In fact, no matter how bad your credit Read More

  • Best options for voluntary auto reposition
    • Most car buyers utilize their credits to buy a brand new or a used car. They secure car loans to finance the vehicle purchase and in return they provide monthly payments. The monthly payments are paid until the last day of the loan term or until the borrowed amount is paid off. Failure to provide Read More

  • Simple tips to stop auto repossession in Texas
    • There are several ways to stop auto repossession in Texas. Although the Texas law allows lenders to repossess the vehicle you are financing in case you pay the premium one day late, most lenders would rather give you time to catch up with the payments you missed. Always bear in mind that the contract you Read More

  • How to look for a car that is in repo
    • Car repossession is a legal act that can be resorted to by lenders in case you failed to make at least three consecutive payments and after the repossession notice was sent to you. Repossession is accomplished when the lender contracts a towing and recovery services company to proceed to your home or work and tow Read More

  • Simple tips to avoid car repossession
    • Car repossession is most of the time inevitable. This is because no matter how hard you want to pay for the car loan’s monthly payment there might be some factors that could prevent you from doing this. A good example of these factors is unforeseen hospitalization or sudden unemployment. Due to this, your pending payments Read More

  • Effects of failure to pay an auto loan
    • Failure to pay the payments involved in an auto loan would probably create significant repercussions on your credit report. However, there are still a number of less serious outcomes in case you fail to make the loan payments. Lenders are businessmen so they don’t usually resort to harsh actions. To provide you with greater understanding Read More

  • Voluntary Auto Repossession
    • Voluntary Auto Repossession is the act of giving the car back voluntary without the need for a repo man coming after you.