Whether you depend on your vehicle to receive you to institution, daily grind, the store and other places, you wish to avoid repossession. Defaulting on your vehivle loan, failing to acquire machine insurance or having an expired let can heavy to your vehicle being repossessed.
Seizure
To prevent a repossession, call the creditor to try to make payment arrangements. Keep in mind creditors aren't legally required to make an arrangement with you once you default on your car loan.
After your car has been repossessed, creditors decide if your car will be kept for compensation, or resold at auction. According to the Federal Trade Commission, creditors must inform you of the auction date, time and location, so you can participate in the bidding if you so choose.
Potential
Repossession can have a negative impact on your credit report, and potentially cause lenders to deny you credit in the future.When your car is being repossessed, creditors typically seize your vehicle. Some creditors hire towing companies to seize the car. Other creditors make you agree to install electronic disabling devices in your car to prevent your car from starting if you default on car payments.
