If you have defaulted on your car loan payment, then try and contact the loan company and make that payment straight away. If, however, the reason you have not paid is that you don’t have the money, then you might have to face the reality of seeing your vehicle repossessed.
Hiding the vehicle might seem like the obvious solution – as the repo company can’t haul it away if they can’t find it. Is this a good idea?
Hiding your vehicle could make things worse
Repossession companies charge for their time. If you make them visit your premises multiple times or drive around the area looking for your vehicle, you can bet they will charge that extra time to the lender. You can also be sure that the lender will pass that cost on to you, perhaps adding on some administrative costs, too.
Locking your vehicle in a garage won’t work either. The repossession company can get a court order for you to open it, and if you refuse, they can bring the police to force it open. If things get to that stage, you might also face charges for contempt of court because you refused to comply with the court order.
A car loan contract is a legal matter. You sign a piece of paper that gives the car company the right to take the vehicle back if you do not keep up with the payments. Remember, it is technically their vehicle, not yours until you complete all payments, so preventing them from taking back their property could see you in court facing criminal charges. However, this will probably end up costing you more in the long run and fail to prevent an eventual repossession from taking place.
All this being said, lenders and repossession companies don’t always play by the book and have been known to take vehicles when they should not have, or use tactics they should not have. If you feel one of them has breached your consumer rights, you may want to learn more about your options.
