How to Pay for a Repossessed Vehicleby Melvin Richardson
If you want to get your car back after repossession, you must meet some deadlines and follow the steps outlined by the lender. You must complete certain transactions, and you will need the appropriate approvals to get your car released. If you delay, you stand the risk of losing your car and having it sold at an auction, which could damage your credit file for 7 years. Handle any transactions effectively and efficiently.
Wait for the letter from the lender that outlines the steps you must take to get your car back. The letter is normally mailed within a couple of days. You can call the lender prior to receipt of the letter to expedite the process. Methods of acceptable payment are included in the letter.
Review the terms and agreements. You must provide proof that your insurance is in force and up to date. Some lenders request that you provide verification that you are working, such as recent pay stubs. You must pay the amount necessary to bring the loan account up to date. In rare situations, the lender may require you to pay the balance in full.
Pay the lender the required amount. Verify that the lender has faxed the release paperwork to the repossession company stating that you have fulfilled your obligation with the lender. The letter will also state you must pay the repossession company all fees pertaining to the repossession before the car is released.
Confirm the fees with the repossession agency by phone. You must pay repossession fees in the area of $350 and the storage fees, which will be about $25 to $50 per day. Some states request that you go to the local police station and pick up a release, which comes with a fee of $15. Verify acceptable methods of payment with the repossession agency.
Go to the repossession company with enough money to pay all fees. Inspect your car to make sure everything is in the same condition and none of your items are missing from the car. Sign the release form if everything is okay, and get your keys from an authorized agent.
- check After you pay the lender, it could take 24 to 48 hours to fax the approval to the repossession company. Every day you delay there will be additional storage fees. Handle everything as quickly as possible. If a personal check is acceptable, you may have to wait for the check to clear before your car is released.
- close You may have a deadline to handle all transactions before your car is sold at an auction.