Because of the constant influx of vehicles and the enormous expense to store them, these repo cars are often sold as quickly as possible at a cheap price. This often incurrs huge losses upon the original buyer of the vehicle who was unable to fulfill the agreement made with the finance company.
Having their car repossessed can often have a huge impact on an individual’s life and is becoming more and more common due to the current economic situation within the UK as buyers struggle to make all payments on time.
Singer Kerry Katona recently famously had two vehicles repossessed due to personal financial difficulty, illustrating how the credit crunch is affecting people from all walks of life.
For those of you interested in taking advantage of these low priced repossessed cars we offer a section on where you can buy a repossessed car and find cheap repossessed cars. Or alternatively you can click on any of the links in the bottom right to find where you can buy repossessed cars in your area.
Car Repossession explained
If you are facing car repossession or you are currently struggling to make repayments on your car loan, we advise you to firstly contact the finance company and let the know your situation as they may be able to assist you.
If repayments are not being made, the lender has the right to repossess the vehicle. The lender will initially send you a default notice, this will provide you with the opportunity to make repayment. You will usually be given seven days to take action. If you don’t have the money to put things right, you should explain this to the lender. In some cases they will agree to a new repayment structure. In other cases they may not agree on anything less than full payment and will take you to court. At court you can request for more time in order to make repayments, especially if you want to keep the car.
The lender will require a court order if you have repaid more than 50% of the total cost of the loan agreement (This excludes insurance). If you have repaid less than the 50%, the loan company will require a repossession order from the court in order to repossess the car. They are unable to take the car without this, however if they do get permission from you then they are able to take the vehicle. In the long run, it is sometimes better to just give back the car to the company.
If you are facing car repossession we hope this site will be able to assist you in providing advice on what happens and who can help you. If you have any information to add or comments to make we would be interested in hearing from you.