If you are in a situation where the bank has issued an order to repossess your vehicle due to overdue and missed payments, there are a few things that you need to understand about the process as well as the rights that you have during the process.
You Can Sell Your Car to Settle Your Debts
If you are behind on your car payments, and you know that you will not be able to get caught up, before your car is repossessed and you are still the owner of your car, you can sell your car. It is best to only sell your car if you are able to get the amount of money that you need to pay off your debt. If you can sell your car and pay off your debt, it is better to run this route than is to wait and have the car taken from you. A repossession does not look good on your credit report and can have long-term negative effects.
Surrendering the Car Can Still Cost You
It is not always a good idea to just wait to surrender the car. Surrendering the car can still cost you. For example, if you surrender the car, the bank will more than likely sell your car at an auction. When they sell the car at an auction, if they don't get enough money back to cover your loan, you'll still be responsible for the remaining amount. People go to auctions to get a good deal on a car, so more than likely you are going to be left with a balance.
For example, if you owe $5,000 on your car, and the bank repossesses it and sells the car for $3,500 at an auction, you are still going to owe the bank $1,500 as well as towing and repossession fees.
You have a Time Period Where You Can Get Your Vehicle Back
When your vehicle is repossessed, there is generally a short time frame where you can get your vehicle back. It is generally only a set number of days or weeks long. During this period, if you are able to come up with the money that you owe on your vehicle and pay off your loan, your bank will give you your vehicle and the title to your vehicle back.
You Can Get Your Personal Belongings Back
If your vehicle is repossessed, you will have an opportunity to get your personal belongings back. Anything that you left in the car you may be able to get back. You may have a hard time, however, getting back upgrades that you put on the car, such as nicer speakers. In order to get those items back, you are going to need to provide proof that they didn't come with the car and that you added them later.
If your vehicle is in danger of getting repossessed, you can sell your car and use the money to pay off the loan. You can surrender the car to the bank and let the bank sell the car; however, if the bank isn't able to recoup the loan expenses, you will still have to pay the difference between the selling price of the car and what you owed on the loan. If the bank repossesses your vehicle, you do have a small window of time where you can get your vehicle back if you can come up with the money to do so.
If you need to get your car taken away to sell or pay off your debts, contact a company like V & A Towing.