Cars have become a complete mode of transportation almost everyone is dependent on in today’s time. It is almost impossible for anyone to imagine their life commute without a car. In some unfortunate circumstances it is possible that someone possess a vehicle that belongs to someone else. In such cases it is very difficult to claim repossession of the car. However, a lot of people are still unaware of the laws that exist under the category of repossession of cars.
When Does Car Repossession Occur?
If and when a person fails to make the complete payment for their cars, they are repossessed by the issuing authorities. It is very common for people to purchase cars on loans. However it is important for the buyer to ensure that the time that was decided to pay the loan off between them and the car issuing authority is followed through. If not the car is then seized. The buyer has to pay the creditor in the form of monthly installments or whatever other mode of payment that has been decided between the two parties.
The buyer is given enough leniencies that if he fails to meet a certain deadline or anticipates that he might not be able to make the payment in a certain month; he has to inform the creditor through court beforehand. If you have fallen behind your monthly payments, then it is necessary for you to understand the various car repossession laws.
- In some states the idea of default is very different. This means that the moment the time that you were supposed to make the payment passes, your car is seized. To prevent such sudden issues, make sure that the idea of default is laid out beforehand.
- There are some states that give the creditor a lot of leniencies when it comes to seizing and repossessing the car. An example is, some states ensure that the creditor gives the client a warning that their car would be repossessed. This way, if they missed out on the payment in ignorance, they can make the payment immediately and save themselves the time and trouble. However, in other states, the creditor is allowed to seize the car without even informing the buyer. They can even breach the property to ensure that.
- Sometimes, the creditor can also immediately sell the car to someone else. Though certain creditors inform the buyer of this allowing them to attend the bidding and perhaps even attempt to save their car if possible. However, if you are not informed and the car is not sold through a public platform, the creditor is required to inform you of the date the car was or will be sold.
- In some states the buyer is allowed to reclaim their car through something known as consumer protection laws. They allow the consumers to reestablish their loan. In a nutshell, through this law you are allowed to re-purchase your car by paying the amount that remains monthly.
Hence, if you are planning on getting a car on loan, be aware of all the laws so you can make your decision as wisely as possible.
Samuel Taylor is the author of this article. He refers to the information and assistance provided by djpsolicitors.com during his car possession case.