Important things to consider – Car RepossessedThe car you are leasing has been repossessed, there are some important thing to keep in mind. First of all, the intent of repossessing your car is to settle your monetary debts on said vehicle to the financial institution that leased it to you or financed your auto loan. The idea being that your car will get sold and auction, and hopefully bring in enough that you will be absolved of what you owe.
A repossession company was hired to tow your car from your residence or place of work. The repo professionals employed by this repossession company are contracted to repossess or recover the vehicle with very little other knowledge about you or the circumstance that has led to the repo that takes place.
Voluntary car repossession
While having your vehicle repossessed can feel very dramatic and overwhelming, there are some things to remember that may make the situation more manageable. If you get notice of an intended repossession, you can do a voluntary repo, which can save you some money and keep the action within your control. This is when you arrange with your financial institution to give up your vehicle voluntarily.
If you arrange a time and place to bring you car, you save your bank or dealership the funds they would have had to pay to a repo company. Often those fees end up on the list of things you owe for anyway, so taking care of them off the bat by doing that work yourself is a good idea. It also has a tendency to make institutions more lenient and cooperative throughout the whole process. You have proven responsibility and a show of good faith that will serve you in the long run. Voluntary repossession is usually noted on your credit report, so, while your credit will be affected by a vehicle repossession, this notation can help your score to recover faster and future auto loans to easier to procure.
It is best to cooperate with the repossession company
If it is too late for voluntary repossession, it is best to cooperate with the repo company. Being violent or aggressive with a repo man is not viewed kindly by the law and may result in a worsening of the situation by illiciting assault charges upon yourself. The repo company will carefully rig and tow your car away. They either move the car to a secure lot of their own patrolling or to a location overseen by the bank or dealership. All of the personal belongings in your car still belong to you. In most states those items cannot be seized under any legal circumstance.
Many repo companies will remove your things from the car and hold them for you to pick up. So, if there are sensitive items in in the car, don’t fret, you can get them back. Usually by the time a car is repo-ed it is too late to work out any new payment plans. At this point the situation is irredeemable. However, the repo process will lessen your debt based on the value left to the car. The intent is to help get you out of the whole. Repossession companies are simply a part of the process.