If you default on your car loan, you are at risk of having the vehicle repossessed. This can be a major inconvenience. Your lender can also go after you for money for the deficiency. Luckily, however, there are ways that you can Stop Your Vehicle Repossession.
Make Up Your Late Payments
The best way to prevent a repossession is to catch up on your late payments, as long as your loan is not in default. Some lenders consider your loan in default after one day of being late. Others consider it in default after 30 days or 90 days. You would need to check with your lender to see what your default policy is.
Reinstate Your Loan
If your loan is in default, you can reinstate the loan. To do so, you would be required to pay all of the back payments, and any fines and penalties that are due. If your vehicle was already repossessed, you can reinstate the loan to get your vehicle back. In order to do this, you would need to repay everything that you owe, all in one lump sum. You would also need to pay any late charges and fines. Once you pay this money, you can get your vehicle back. Most lenders will only allow you to reinstate your loan once.
Redeem the Vehicle
If your vehicle was repossessed, you can redeem it, and get it back. In order to redeem your vehicle, you would need to pay the full amount on the principle, all interest payments, repossession payments, and any storage fees which were incurred after your vehicle was repossessed. This is not an option for many people, however, because it can be a very large amount of money. If you did not have the money to make your payments, chances are you will not have the money to redeem your vehicle. If you can come up with the money, redeeming the vehicle is your best option. Once you own the vehicle outright, you can Stop Your Vehicle Repossession.
It is in your best interest to avoid having your vehicle repossessed. It will save you the hassle of going without a car, and a repossession can have a negative effect on your credit report.
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