How to Keep Your Car From Being Repossessed

Steps on common sense ways of not getting your car repossessed if you have been laid off and unable to make the monthly payments.

Difficulty: Moderate

Instructions

1. Do not try to outsmart the repossession people who are trained like the CIA to get your car back to the car dealerships if you do not pay your monthly car payment on time. Tactics have included hiding the cars over a friends house or parking the car somewhere else other than where you live hoping that the car will be there the following morning.

2. Communicate with the company you owe the car payment and work out a payment plan that will please the both of you. Some of these car dealers understand that the economy is causing a lot of lay offs and you may be one of the thousands that had to be let go because of reasons that were not in your control. Communication is the key instead of hanging the phone up on a requester for payment or like step one; trying to hid your car from the repossession people.

3. If you are a person of presence, you may want to drive the car to the dealerships (You have got to be brave and confident)and offer to pay what you can towards the car payment to prevent car repossession. Open up communications with the owner of the car lien and save your self the frustration and worry about whether your car is going to be there the following day. Talk and compromise and explain your circumstances. Talk and they will listen, do not talk with the car loan people and you may not see your car parked in front of your apartment or in front of your house the following day.

Tips & Warnings

• Once the repossession people are taking your car back to the dealerships there is not much you can do except call the dealerships and let them know when you can get your car back. You will have to pay for the towing, impoundment and any other fees at the discretion of the people who owned the car. So Call!

[lindagoffigan]

on 7/27/2009 A volutary surrender means that you are giving up the car but you still owe for the car loan. Ridding yourself of the vehicle means that the repo man will not have to come and pick it up. You will no longer have use of the car, however, you signed a contract and when you signed the contract means that you are still liable for the car payment. Stay in touch with the lender and let them know about your job status. By surrendering your vehicle, you are deducting the cost of having to pay the repo man but you are still liable for the loan.

[caution]

on 6/28/2009 What are the pros and cons of a voluntary surrender vs. an involuntary surrender/repossesion? I spoke with my lender to see what other options were available (already used the 2 month deferral, but job status has't changed), and the representative informed me that if I did the voluntary surrender my credit score would drop 150 points, I would be responsible for the deficit (difference between what the car was purchased for at auction and what is owed), towing fee, and it would remain on my credit report for seven years. It soulds like a vountary surrender is just another term for bankruptcy or repossession. Other than doing what is morally right, what are the insentives (dare I say advantages) to do a voluntary surrender?