ALT-1 Avoiding Vehicle Repossession
Obviously, avoiding vehicle repossession can be achieved by simply making the payments on time. However, life has a tendency to throw us a curve and we find ourselves in awkward, embarrassing situations. Fortunately, we have a strong weapon against things such as repossession, and it is called a telephone.
While "no news is good news" applies in many situations, it doesn't apply in the lending world. When we don't hear anything from a person once a payment becomes overdue, we try to contact them. In many situations, the person ignores the phone calls. When this happens, we have no reason to believe anything other than they are irresponsibly neglecting the agreed upon payment and have therefore defaulted on the contract.
It is truly amazing how those who seemed to have forgotten how to contact us, suddenly remember just moments after their automobile has been repossessed. And it is at that time they explain their situation. Most of the time, we, like most other lenders, want to work something out with them to complete the contract.
Had they been more forthcoming and honestly leveled with us up front, likely as not, something could have been arranged. However, they chose to evade our attempts to contact them and made no effort whatsoever to communicate with us. In business, failure to communicate is bad business. Most businesses will work with people experiencing setbacks.
Once you develop a reputation of distrust, it is difficult to regain that trust. But some people are severely embarrassed by financial set backs and rather than admitting their problems and trying to work out a solution; they simply ignore it as if they're hoping it will go away. When it comes to not being able to make your car payment on time and failing to contact us, the only thing that will go away is your car.
When purchasing a car, you should ask them for a buffer clause in the contract for situations where your financial situation might take a bad turn. Some contracts can include conditions such as allowing you one month out of a year to skip a car payment.
There are other options available when a person finds themselves in a financial bind. One is where the company allows you to skip a month and pay extra each month until you catch up. Early communication is the key to avoid repossession. Don't wait for them to contact you. Call them and let them know you are having a problem. In most cases, they are just as eager to work something out as you.
In conclusion, preparedness is one way to help you avoid repossession. Make an effort each month to pay a little more than the minimum car payment in order to build up a sort of payment equity. In the event of financial strain, you can fall back on this equity while you get a grip on your situation. Otherwise, the charges you are going to face when having your car repossessed can be overwhelming. Therefore, when faced with knowing you won't be able to make your payment on time, calling us will go a long way in avoiding vehicle repossession.
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