Consumers may buy a car by availing an auto loan or they may choose to lease the car. People, generally, lease if they feel that the advantages of leasing outweigh the benefits accrued by buying a car. The article on “Leasing vs. Buying a Car” examines this issue in great detail. Regardless, of whether people lease or avail an auto loan, they have certain obligations pertaining to the discharge of lease or loan payments, as the case may be. In case they are unable to repay their creditors, or their lessors on time, the vehicle can be repossessed by the creditor or the lessor as per the agreement outlined in the contract drawn in conformity with the state vehicle repossession laws. Some states also allow the vehicle to be repossessed in case the lessee / debtor does not have adequate auto insurance. Moreover, the creditor or the lessor need not get a writ from the court in order to repossess the vehicle or forewarn the debtor. The creditor may also have the right to sell the car to a third party, commonly known as the assignee, who can repossess the vehicle, failing timely payments. One should try contacting the creditor or the lessor and express the inability to make regular payments. Negotiating the terms of the payments and preparing a fresh schedule of payments may help averting a possible vehicle repossession.
Voluntary Vehicle Repossession
Sometime, people may voluntarily call up the lender or the lessor and hand over the car on account of the inability to make regular payments. In this case, the repossession is referred to as voluntary vehicle repossession.
Eliminates Repossession Fee: Agreeing to voluntary repossession results in reducing additional expenses, for the lessor or the creditor, since he / she does not have to hire the services of a repossessor. Any fee, that is paid by the lender for the purpose of repossession, is passed on to the defaulter in the form of repossession fee. Voluntary repossession saves the defaulter the burden of paying the repossession fee; a small omission that may be appreciated by the consumer / defaulter whose inability to keep up with regular payments could be the result of strained finances. Read the rest of this entry »
