What to Do if You Can’t Pay Your Car Note: Stop Car Repossession

Stop Car Repossession

Don’t let the repo man show up for your car.

Not Paying Your Car Note Leads to Ugliness

I just got a visit from the repo man last night. Not a pretty scene. My neighbor is apparently behind on his car payments and his lender has had enough. They’ve called on the dogs, who are using any means necessary to get the car. Including accusing me of hiding his car at 11pm. Repo men tactics are classy, aren’t they?

Anyway, repossession is just a mess. You don’t want your neighbors knowing about your bad debt issues, do you? And you definitely don’t want your credit score to be damaged. A late payment can affect you by as much as 100 points. And a repossession can ding you even worse. Here’s what to do when you fall behind on your car payments and how to avoid the dreaded repossession.

Three Ways to Stop Car Repossession

Call Your Lender – Get on the phone with the company that lent you the money for the car and talk to them about your situation. They should be open to working with you and keeping your business. They don’t want a charge-off. They want a paying customer. They may be able to work with you and give you more time to make your payment. As soon as you make the payment, get a letter and / or receipt showing you are all paid up. This will be good ammo if the repo guy comes around again.

Consider a Refinance – If you’re past that point, consider asking your lender about a refinance. Yes, you can refinance a car loan. By extending the term, you could potentially lower your payment to something you can afford each month.

Sell the Car – Another option would be to sell the car and completely pay off the car loan. I like this solution the best. Because if you can’t afford something, then you shouldn’t have it. Just get rid of it. Get the creditor off your back and never have to worry about a payment again. This is a no-brainer if you are a two car family.

Your last option is just to keep running from the repo man and ruining your credit. You don’t want that. It will eventually catch up to you, or at least your ticked off neighbors will.

Have you ever had to deal with a friend or family members repossession?

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Last Edited: May 13, 2013 @ 1:11 pm
About Philip Taylor

Philip Taylor, aka "PT", is a husband and father of two. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or view the Philip Taylor+ Google profile.