Feeling the financial burden, and finding yourself unable to make your monthly vehicle repayment? All is not lost—follow our tips to prevent the bank from taking your car.
Struggling to make your monthly car payments? The absolute last action a financing firm will do is to repossess a customer’s vehicle – the bank or lending institution would much prefer that the car remains in your care, than having the bank taking it as a result of late or missed payments, but it does happen. Then, not only will you be car-less, but your credit status will be badly impacted by this as well. If you are unable to make a payment, credit bureaus are informed, and when you reapply for future credit, it will impact your credit score if legal action was taken against you.
The can’t take your car if they don’t know where it is…(Hiding won’t help – talk to your bank.)
I’m really struggling to make that monthly payment – what now?
Honesty and open communication are by far the greatest practises if you find yourself in a financially precarious scenario. WesBank advises such clients to get in touch with the bank right away to investigate their alternatives for rescheduling their payments, so let’s take a look at what you can do to prevent repossession, including selling your car if you can’t afford it anymore.
1. Make your car payment a priority
Prioritize your payments if you find it difficult to pay all of your monthly expenses at once. Always pay your most important debt first, like your bond and vehicle loans. Establish automated payments or set reminders on your phone to make sure you never forget to make these all-important payments.
2. Notify your lender
It’s crucial to let your lender know if you’re experiencing problems making payments. The first step in preventing repossession would be to work with your bank to find a solution that benefits both of you.
4. Restructure your debt
Depending on your circumstances, refinancing your loan can be another option to look into. Your monthly payments or interest rate can be reduced as a result!
5. Sell your vehicle
After exhausting all of your financial choices and finding yourself unable to make payments, you could think about selling. This will prevent the car from being repossessed and give you time to pay off the remaining loan balance. Learn how to sell a car with outstanding finance, in this article.
Buying a car? You could possible bag a bargain – Find out how repossessed car auctions work.
Source: WesBank via MotorPress
Keyword: How to prevent your car from being repossessed