Avoid car repossession and cope with your monthly finance payments to help you have the strongest chance of not losing your vehicle to the bank by following the few tips below. Having repayment problems in today’s turbulent economic climate no longer refers to mechanical faults, but monthly repayments as a lot of people are now stretched financially. For those that do not own a vehicle, this is a great time to get one because the entire industry, especially the second hand segment, is one large repossessed car sale.
For those trying hard to avoid car repossession and cope with their monthly payments the good news is that analysts are predicting that rates should not climb any further. This means that if you can afford your repayments at the current interest rates then you can really afford your vehicle finance when times eventually get better again. Here’s a few tips on what you can do in order to stay mobile on a tight budget:
1: Downgrade – Consider downgrading to a more affordable car. Visit a bank approved dealer to establish a trade-in value or negotiate the sale of your vehicle. This will help you determine what alternate vehicle is comfortably in your price range.
2: Extend The Loan Period – Banks can restructure finance agreements to extend the payment period or build in a balloon payment that will allow you more disposable monthly income. Remember, missing payments in any way should be avoided, this affects your credit record.
3: Stay Insured – Do not cancel your vehicle insurance. You could find yourself in a position where your car is stolen and you are still liable for the monthly repayments. This is also relevant in the case of an accident or mechanical failure because you will not be able to afford to pay for repairs.
4: Takeovers – Never hand your car over to other people to take over your payments without checking with your bank first. Otherwise, you are still legally obliged to pay for the vehicle, even if it is not in your possession.
By taking the above into consideration you will hopefully be in a stronger position to make decisions and know what to do when the need arises to hold onto your vehicle. When interest rates do eventually drop you will be in a stronger position and happy that you managed to avoid the car repossession and will be able to cope with your monthly finance payments.