The best and most straightforward way to stop a car title loan repossession is to communicate and work with your lender when a financial emergency arises. Explain to them exactly what’s happening and why you can’t make the monthly payment. Any type of payment relief or loan restructuring is better than facing a vehicle repo.
It’s the same strategy you would take if there were a situation where you fell behind on any other type of conventional loan. Believe it or not, finance companies don’t want to conduct a title loan repossession. The same is true when they need to foreclose on your house or take your car if you fall behind on the monthly car payments. When a lender repossesses your car they have to spend a lot of money for storage and for a company to confiscate the vehicle. All these costs add up and it’s much preferred for a borrower to continue to make the payments each month.
Know When Your Lender Is Going To Repossess Your Vehicle
There may be a situation where you’re so far behind on your payments that a title loan repossession is inevitable. The first step here is to explain to your title loan company exactly what your financial situation is.
Most borrowers are surprised to find out that a lender will work with them to arrange alternative payments to avoid defaulting on an auto title loan. Any legitimate lender won’t want to deal with the stress and hassle of impounding your vehicle and then selling it at auction. They would much prefer to keep having you make the same monthly payments and they should be amenable to any payment arrangements.
Ask them to hold on to the car and not sell it at auction! There’s no risk in reaching out and perhaps your lender will be receptive to working with you on a repayment plan.
Needless to say, you need the money to get to work and the last thing anyone wants to deal with it is the threat of a repo. You’ll lose your mind with the number of incredible fees they charge to do these things and the mistake (which is common) you can make by not reading the fine print they slip into the loan papers.
Don’t Wait For A Title Loan Repossession
Don’t wait until you have no alternatives but to send them money because, in all probability, it will cost you more money and add a load of paperwork you must fill out and sign. Check with your state repossession laws and find out what legal protections you have. Some municipalities like Los Angeles and San Francisco have city restrictions that limit what a lender can do when trying to repo your vehicle. Companies that offer car title loans in Irvine CA must follow the state guidelines for repossessions.
In the long run, repossession can cost you time and money and really hurt your credit. Stay in contact with your lender to avoid losing your vehicle!
