Getting your car repossessed can be a stressful and challenging experience. Here are some of the things you can expect to happen:
You will be notified.
Before the repossession, the lender will usually send you a notice stating that you are in default and demanding payment. If you do not make payment, the lender may then take possession of your car.
Your car will be towed.
On the day of the repossession, the lender will send a tow truck to take your car. The tow truck driver will take your car to the lender's impound lot, where it will be stored until it is sold.
You may be charged fees.
In addition to the amount you owe on your car loan, you may also be charged fees for the repossession. These fees can include towing and storage fees, as well as late fees and other charges.
Your credit will be damaged.
Repossession is a serious negative event that will stay on your credit report for seven years. This can make it difficult to get approved for a new car loan or other types of credit in the future.
Your insurance will be canceled.
When your car is repossessed, your insurance company will be notified. Your insurance will then be canceled, and you will be responsible for any damages that occur to your car while it is in the lender's possession.
You may have the opportunity to redeem your car.
In some cases, you may have the opportunity to redeem your car by paying the amount you owe on your car loan, plus any fees and charges. However, you must do so within a certain amount of time, usually within 10 days of the repossession.
If you do not redeem your car, it will be sold.
If you do not redeem your car within the allotted time, the lender will sell it at auction. The proceeds from the sale will go towards paying off your car loan, and any remaining balance will be sent to you.
Repossession is a serious event, but it is not the end of the world.
By understanding the process and taking action to protect yourself, you can minimize the impact of repossession on your life.
