How to Avoid Repossession
- Secure your car in a locked garage
- Remove the tracking device
- Know repossession loopholes
- Understand repossession laws in your state
- Keep in touch with your creditor
- Know your loan repayment status
Repossession: a Temporary Solution
Repossession is costly for creditors. Hiding your car is just a temporary solution to help you get organized with your finances. An auto lender can repossess your car if you fall behind on your car loan payments. By taking steps to hide your car while they are researching whether or not they want it, you increase the chances of keeping it longer.
Negotiate to Prevent Repossession
Your best bet is to negotiate a payment plan or settlement to prevent repossession. Getting around repossession is possible by communicating with your lender.
Potential Consequences of Hiding Your Car
If you hide your car, the repo agent will step up efforts to find the vehicle. Many lenders require new vehicles to be equipped with tracking devices. While hiding your car may help you avoid repossession for a time, it won’t last forever. When a creditor has the legal right to repossess, they eventually will.