Voluntary Vehicle Repossession – When you decided to opt for voluntary vehicle repossession, you will return your car to your borrower and notify him that you cannot make any further payments. If you do this, the lender will bear it in mind that you wish to surrender your car. The time and venue for the repossession will be set; all you need to do is bring the vehicle and return the keys.
This process is referred to as voluntary because you are choosing to do it on your own without waiting for your lender to take the vehicle forcefully. In as much as it hurts to lose your car, it is much better than incurring repossession costs.
There are various steps to be taken before you can successfully achieve a voluntary vehicle repossession, pay close attention to the guide below.
Make Inquiries To Find Out If You Still Get Back Your Vehicle
Normally, a loan company or a bank will offer you the option of getting your car back when you clear your loan payments before it is auctioned out. Of course, you will have to pay the repossession cost. Sometimes, there might be room for you to reinstate the loan and work out a better payment plan. You must bear in mind that the repossession might not be erased from your credit report. The thing is, your new payment might be helpful in working out a favorable deal with your borrower.
Find Out The Repercussions That Might Come With The Repossession
There are financial implications that come with turning over your vehicle to your lender. In fact, the financial repercussions are similar to that of involuntary repossession. Voluntarily giving up your car does not mean you are exempted from paying the due balance of your loan after the car has been sold. For better understanding, let’s make an example.
Assuming you have racked up a debt of $15,000 and the vehicle you voluntarily give up, sells for $10,000, you are within the obligation to pay the $5,000 balance to your lender. Unfortunately, you will still be paying for a car that you don’t have ownership rights to anymore. So, before you opt for voluntary vehicle repossession, consider this flip side.
Call Your Lender
If you have been experiencing difficulties in making payments and your lender is already on your neck, repossession is probably the best option to take. By law, a lender has every right to collect your vehicle after you miss your first payment, but most of them prefer to wait on you for sometime before moving to take any action. So, when you fall short on payments, and there is little hope of getting back on your feet, call your lender and ask for a repossession. The lender will pick a location where you will relinquish your vehicle. In most cases, it could be the dealership where your vehicle was purchased or an auction site.
We know how difficult it is to lose one’s car. But taking the wrong steps while you are in debt might make things more difficult for you; therefore, mistakes need to be avoided. The guide above is sure to help carry out the vehicle repossession successfully.