- Default on your loan payments.
- Fail to maintain insurance on the vehicle.
- Allow the car to be damaged or destroyed.
- Use the car for illegal activities.
- Breach any other terms of your loan agreement.
Here is the legal basis for the information provided:
Virginia law allows a finance company to repossess your car if you default on your loan payments. Section 46.2-851 of the Virginia Code states that "If a debtor defaults in payment of any installment for ten days, or in payment of five percent or more of the purchase price, the secured party may repossess the collateral."
There are a few exceptions to this rule. For example, if you have a valid warranty claim, the finance company may not be able to repossess your car. You can also prevent your car from being repossessed by paying off your loan balance or bringing your payments current.
If your car is repossessed, the finance company will notify you within ten days. The company must also provide you with a statement of your rights, including your right to redeem the vehicle. You have ten days to redeem your car, but you must pay the outstanding balance on the loan, as well as any late fees and towing charges.
If you do not redeem your car, the finance company may sell it at a public auction. The proceeds from the sale will be used to pay off your loan balance, and any excess funds will be returned to you.
Here are some tips to help you avoid having your car repossessed:
1) Make sure that you make all of your loan payments on time and in full.
2) Keep your insurance policy up to date.
3) Take care of your car, and make sure that it is in good condition.
4) Follow all of the terms and conditions of your loan agreement.
5) If you have trouble paying your loan, contact the finance company immediately and explain the situation.
