Car repossession

[sharky]

I have never had a car repossessed before but a friend of mine is worried about it. How many payments can you miss on a car before the company will take it under repossession?

 

[AllenWrench]

It really just depends upon your credit, your payment history and the company you deal with. If your friend has failed to make payments on his vehicle, the proactive thing to do would be to call the finance company and make alternate payment plans. It can be done, especially with the economy doing so badly. Some cars they don't want back and would rather you keep but eventually they will come and take back any of them.

 

[Monty Carlos]

Umm, had it done twice. Pretty embarassing... The first car was repossed because I was duped by the finance company. I went in to make my payment - I only had about three more to go. They knew this, and convinced me that I could get a brand new car, and keep paying the same monthly payment. They told me that I could skip that month's payment - just give them a few days, and they would get me my new car. Well, weeks went by - no car. I called several times and offered to make my payment, since I was getting worried. They assured me that everything was ok, not to worry about that payment. It was Christmas time, so I went ahead and spent the money. Then, they call me and tell me it didn't work out, so go ahead and make the payment. At this point, I was two months behind! I didn't have that kind of money! So, it ended up being reposessed.....

 

[General]

There was a practice in the car finance industry, where they would keep rolling the residual of the old car you were trading in, on top of the cost of the new car, but keeping your payments the same. They would also be selling your old car for a profit. When a customer came to a point where they didn't want to get their new car financed at the finance company, the customer got stuck with a huge residual payment. Companies are not supposed to do that anymore, but always read the small print.

 

[dartmobile]

I had a room-mate who had his car repossessed. I think the finance company will try anything they can to get their money, without taking the car. Repossessing the car is a pain to most of them. My friend hadn't paid in about 8 months, and he was driving without insurance. I didn't know about the lack of insurance, until after the car was repo'd.