Repossession of a car is unsettling. As the shock of an empty parking space wears off, you reflect on what led up to this traumatic and embarrassing moment. Banks and repossession companies for a variety of reasons take motor vehicles. Falling behind on payments is the most common cause.
Once you confirm that your lender took your car because of delinquent payments, you may think your options are limited. However, certain steps exist that require important decisions on your part.
Is Getting Your Car Back The Best Option?
Prior to a sale at auction, your bank or the repo agent may provide a window of time to set up a new payment plan or pay loans in full, along with other repossession-related expenses. However, that choice may be a double-edged sword.
Before working things out, you must ask yourself difficult questions regarding the long-term cost-effectiveness of getting your car back. Can you afford the payments? Can you cover the cost of insurance, gas, and future maintenance and repairs? Can you commute to and from work through more affordable options, including carpools or public transportation?
Repossession Leading To Reflection
Repossession of your car may only be the beginning. Delinquent car payments could be a symptom of much larger financial problems. The best solution may be bankruptcy protection, especially if you are behind on all of your debts.
Filing before a bank or repossession agency sells your car could protect it from repossession. It puts you in a better position to negotiate a plan to catch up on payments while getting all of your other finances in older.