Repossession is a traumatic event with long-lasting effects. This is why you should know your rights and what you can do before it happens. As soon as you realise you can’t pay, talk to the creditor about setting up a lower payment amount for as long as you need it.
What Happens If You Don’t Pay Your Car Loan?
One possible result is that your car may be taken away. The borrower may get a notice of default and have 30 days to respond. If you haven’t paid back your loan (usually because you forgot), your creditor will send you a default notice as the borrower/owner of the car. The information will then give you 30 days to answer.
After 30 days, your creditor can take steps to get your car back, which may involve getting a court order (e.g. if the vehicle is parked on private property and they have not been given written authority to enter and take possession of the car).
Once you get the default notice, you should talk to a lawyer or call a Financial Counsellor to learn more about your rights and how they apply to your situation. If your car is going to be repossessed, take pictures of it. They may come in handy if you need to show how it looked before it was taken.
Second, you may still owe money to the creditor after the car is taken back. The creditor may charge you a fee to take your car back and sell it. Your vehicle may also sell for less than what you still owe on the loan. This can leave you with debt after you sell your car, which you will have to pay. You might have a bad credit record as a result.
If your car is taken away, you might have a bad mark on your credit report for five years. This could make it more difficult for you to get credit in the future. However, you may need to find another way to get to your destination. For example, if your car is taken away, you will need to find another way to get to work, the store, and other places.
Quick Car Removal provides a wide range of services to our customers, including the car removal of unwanted vehicles, assistance with repossession, and the recovery of repossessed vehicles. Unwanted Car Removal is the easiest and may be completed in a matter of minutes. So you require immediate cash for cars!
Selling The Repossession Car
When your vehicle is repossessed, your lender can keep it to cover your debt or sell it. In some places, your lender is required to notify you of the outcome.
For example, if the car will be sold at a public auction, your state’s laws may require the lender to notify you of the date and location of the auction so that you can attend and bid. If the lender sells the car privately, you may be entitled to the date of sale.
In either case, you may be able to repurchase the vehicle.
Paying the total amount owed, which often includes your past due payments, the remaining debt, and repossession costs such as storage, sale preparation, attorney fees, or bidding on it at the repossession sale. You can “reinstate” your debt in some areas by paying the past-due amount plus your lender’s repossession costs.
What To Do If Your Car Is Taken Away From You?
Get legal advice, contact the creditor to find out if there is anything you can do to stop the sale of your car, such as setting up payments or asking if they will accept an offer to settle the debt with a full and final price, as in some cases, a lower lump sum may be accepted.
Talk to a financial counsellor at Quick Car Removal. They will explain how the court process works and when it will happen.
Dial 0481 332 220or 0387 123 683 to contact Quick Car Removal in Melbourne.