5 Things to Know After a Repossession
One of the potential downsides to car ownership happens when you’ve fallen behind on your car payments. Certain life events can come up that prevent you from making your car payments on time. However, that usually won’t stop your lender from repossessing your car.
The car repossession process occurs when a creditor, lender, or bank that has a lien on an asset reclaims the asset after a period of missed payments. As you deal with the aftermath, figuring out your options can quickly become complicated. Trying to figure out if you can get it back, how you’ll get to work, and how the repossession will affect your future buying power.
If your car or truck has been repossessed, don’t panic. Here are five things you need to know in the immediate aftermath.
It Could Be a Mistake
No one person can claim they are perfect — especially not your lender. In most cases, if you haven’t been making your car payments, you won’t be surprised someone is repossessing the vehicle. However, if you have been making your payments, you have a case.
Contact your lender and ask why your car was repossessed. They can tell you the exact reason why the car was repossessed and figure out if there was indeed a discrepancy in their data. You could also find out if there is another reason behind the repossession.
It Doesn’t All Belong to the Lender
When your car gets taken away, you can feel depressed over the lost transportation, and any valuables inside remain a natural feeling. However, simply because your lender is entitled to your car doesn’t mean they are entitled to the contents inside the vehicle.
While your lender has the right to repossess your car, they don’t have the right to any personal property inside the vehicle. So, if you left your favorite pair of pumps or CD collection in your car, your lender is required to give it back. Contact your lender and ask about any items left inside the vehicle during the repossession.
No Right to Damage Property
If you have a trove of personal property left inside the vehicle while the repossession occurred, not only are you entitled to get everything back, the lender has no right to damage it. When the lender sends your property back, it should be in the same condition as when the car was repossessed.
If your car was parked in your garage, for example, your lender doesn’t have the right to break down the door to get the car. If you feel like your rights were violated, consider speaking to a consumer lawyer to build your case against the lender.
No Lasting Records on Credit Reports
For many people, one of the most significant issues they have after a vehicle repossession revolves around how it affects their credit report. Derogatory marks on your credit history limit your purchasing power, ability to get loan approvals and can negatively impact every aspect of your life. However, while a repossession will show up in your credit history, it won’t stay on there forever.
Vehicle repossessions stay on your credit report for up to seven years. It may prove challenging to get approved for the best loan rates during that time. However, you can start rebuilding your credit during that time, so you can return to a semblance of your past purchasing power when the seven years are up.
There’s Still Hope
While a repossession can hinder your chances of getting another auto loan in the future, all is not lost. Different lenders work with people with less than stellar credit scores to help them get the loans they need for the cars they want and fit their budget. However, bad credit auto loans in Trenton, NJ, from PA Auto Credit can get you into the safe and affordable vehicle you need.