If you are leasing a vehicle and fall behind on your monthly payments, you risk having your vehicle repossessed. Losing a vehicle to repossession is every driver’s worst nightmare, and one that is a very real possibility for drivers who run into financial trouble.
Having a car repossessed hinders more than just a car owner’s mobility; it also has a severe negative impact on consumer credit scores lasting for up to seven years. This is a huge problem because having a poor credit score limits your ability to take out a mortgage, get a car loan, or clear a credit check done by a potential employer or landlord.
To prevent car repossession, and the negative effect it will have on your credit score, you need to take action and face the issue head-on. Consider taking the following steps to avoid vehicle repossession:
Contact Your Lender
According to the American Financial Services Association, vehicle repossessions cost creditors $8,000 on average. The best case scenario for both you and your lender is to keep you in your car and continue making monthly payments.
Lenders will often work with troubled borrowers to develop more agreeable payment plans, with loan relief options like loan refinancing (dropping your interest rate), loan extensions (increasing your term, but decreasing monthly payments), or loan deferments (allowing you to stop making payments for a little while so you can get back on your financial feet).
Cut Costs
For many people, a car is a necessity for getting to work, going to the grocery store or to school. If you cannot afford to lose your car, then it’s time to consider some of the other items you currently pay for, but which you don’t really need. For example, think about cutting cable television, dining out less often, skipping out on buying new clothes and cancelling any vacation plans that you might have in place.
Alternatively, one extremely easy option for many borrowers is to give up their current vehicle and swap it out for one that’s significantly less expensive. Think about turning in your lease early (if they’ll let you roll into a new, cheaper lease without any major penalties), or selling the vehicle you are currently making payments on to get something more affordable.
Take Out an Auto Title Loan
If you own your vehicle it’s nearly paid off and you’re only a few payments behind, then you may qualify for an auto title loan with Car Capital Financial. We can provide you with a low interest secured loan with an amount up to the value your vehicle is worth. We’ll give you the money in cash, often within hours of receiving your request, and without restricting your use of your vehicle in any way.
In return for your loan, you’ll need to give us temporary possession of the vehicle’s title (as collateral), which we’ll give back to you as soon as you’ve paid off your loan in full. While a car title loan does mean taking on more debt when you’re already having issues with your current debt load, it can also buy you a few weeks or months of precious time you need to get your finances in order and prevent having your vehicle repossessed.
Car Capital Financial
Consider getting your car title loan from Car Capital Financial. We deliver vehicle title loans all throughout Southern California, delivering cash in hand within as little as 30 minutes from receiving your first phone call.
We don’t need to check your credit score or your credit history, and we won’t restrict your access to or use of your vehicle in any way whatsoever. Title loans are issued based on your ability to repay the loan.
For more information about our safe, reliable and affordable title loans, please call us now at 1-888-500-9887.