7 Ways to Avoid Your Car Being Repossessed
As a result of the current economic climate in the UK, an increasing number of people are finding making repayments on car loans difficult and as a result their cars are being repossessed. Having your car repossessed can often be a huge financial strain as loan companies resell or auction the repossessed car as quickly as possible for a knockdown price and then chase you to pay the difference. If your car has been repossessed or you have been served with a default notice finding useful information can often be difficult.
But could this whole situation have been avoided in the first place? Below are some top tips on avoiding car repossession:
1) SHOP AROUND – When you first go ahead with a purchase its important to check the market. There are many companies offering different rates and different terms. Shopping around can get you the best deal and ultimately save you money so payments can be more affordable during more difficult times.
2) DECIDE WHICH IS THE BEST TYPE OF LOAN FOR YOU – Secured loans, hire purchase car credit are all different types of loan. Check carefully which is most suited to you and your budget to avoid your car being repossessed.
3) DON’T BE PUSHED INTO ANY DEAL – When buying a car or getting a loan for a car you can easily be pushed towards the wrong option for you by commission hungry salesmen. Don’t commit to anything until you have done your research. There is no harm in asking for a day or two to think about your final decision.
4) CALCULATE THE TOTAL AMOUNT TO BE REPAID – Although repayments may be low how much are you actually paying by the end of the agreement? Buyers often overlook how much they will end up paying and ultimately end up paying much much more.
5) CAN YOU AFFORD THE REPAYMENTS? – Are you buying over your budget? Is this really what you can afford. Sometimes the desire for having a nicer car than your budget can afford will bring problems when making repayments.
6) CHECK THE SMALL PRINT – When signing any agreement it is imperative to check the small print thoroughly and know your rights. Remember these contracts have been drawn up by cunning lawyers who are paid by the loan companies to make the deal seem more attractive and get the most out of you if you default on payments.
7) SPEAK TO THE LOAN COMPANY – If you are struggling with repayments, DO NOT HIDE. Often just speaking to the loan company can be the best way to avoid having your car repossessed. They may be able to adjust your repayment schedule or allow you time to come up with the funds.