How to Get Your Car Back After Title Loan Repossession – You may be clueless about what happens after your title loan repossession. Defaulting on a title loan can lead to repossession, resulting in the loss of your vehicle, which can be a stressful and challenging experience to resolve. Fortunately, it is not impossible to get your car back after repossession. But you need to know how to get your vehicle back after title loan repossession.
If your car has been repossessed due to a title loan default, there are several options available to help you recover your vehicle. You can decide to pay off old debts, pay off the loan completely, and purchase a car at a car auction. Some car owners take title loans to cover unexpected bills but end up falling into a tight spot when all the loans pile up. This may cause the car owner to lose their car.
No one intends to lose their car due to a title loan repossession. However, it is advisable to reconsider your options before proceeding with a title loan repossession. This write-up contains all the information you need to get your car back after a title loan repossession.
Can You Get Your Car Back After Title Loan Repossession?
Meanwhile, every lender intends for the loans they give out to be returned with interest. Having a repossession harms both you and the lender. The car owner will lose the car, and the lender gets a depreciating asset. Most times, it is in the lender’s best interest to work out a deal with borrowers to get out of a title loan repossession.
Why has my Car Been Repossessed?
The repossession rate is different in every state. In addition, car loan agreements state reasons why a car might be repossessed. One of the reasons for repossession is if the requested car insurance coverage is not obtained. Or if a car owner defaults on a loan repayment as agreed in the contract signed. In other cases, a car may be repossessed if a borrower doesn’t repay their loan. After defaulting on repayment or violating any term on your loan, your car may more likely be repossessed. However, depending on your state’s laws, your car may completely lose its rights if you are found guilty of avoiding legal repossession. These acts include destroying, hiding, or damaging the car.
How to Avoid Title Loan Repossession
The best approach to repossession is to avoid a title loan repossession. Avoiding it prevents you from getting into the tight spot of trying to get your car back. There are different ways to avoid title loan repossessions, but one of the most vital is to:
Contact Your Lender
If you are having a hard time repaying your car loan, speak with your lender to discuss better options. Some lenders may renegotiate your car loan and reduce your monthly payments, increasing your loan repayment term. However, you may have to pay more interest over the extended loan life. In addition, your lender may decide to postpone the loan repayment. Also, this means that for a limited period agreed upon between you and your lender, you will not make any payments on the loan, giving you enough time to get back on your feet.
How to Get Your Car Back After Title Loan Repossession
It is not impossible to get your car back after a title loan repossession. Using the below steps, you can easily get your car back.
Understand the Reasons Why Your Car Was Repossessed
It is quite important to know how you got into this situation in the first place before proceeding with getting your car back. Most times, cars get repossessed when borrowers cannot afford to repay a car loan. Some borrowers take out excess title loans to cover short-term expenses and end up having a hard time repaying the loan.
Cross-check your loan agreements and determine whether there is a reinstatement option.
Every lender has different terms and makes different loan agreements. Also, these agreements will show every detail about your loan, along with reinstatement options. Check your loan details for reinstatement options if there are any choices available.
Contact your lender and discuss a reinstatement plan.
After finding the best option for your loan agreement, you will have to contact your lender. Inform them that you would like to take back the loan and get your car back. However, some lenders may use this opportunity to increase the loan interest rates.
Refinance of the Loan
You may need to negotiate a repayment term or refinance the loan. Refinancing may reduce your loan’s monthly payment by the increase in your loan term.
Be ready to pay old debts or charges.
Before your car is released, you will have to pay off accumulated fees. This is because even when you stop paying your loan, these fees pile up.
Keep Open Communication Lines to Avoid Repossession in the Future
After getting your car back, avoid falling back into repossession. Communicate with your lender and make your loan monthly payments on time.
Seek Professional Advice
This is to get guidance throughout the process. It is not necessary for everyone, but if you insist that there’s something wrong with your repossession, you may need professional advice.