Avoiding and Disputing Car repossessions

Car repossessions are on the rise... Sadly, so are illegal car repos. From turning up at your house at unreasonable hour to using force, car owners are often left feeling powerless. But, there is a way to dispute this.

Of course, the best way is to avoid car repossession altogether. Sounds easy, eh? It can be, if you are completely honest and are able to communicate calmly and openly with your lending provider as soon as you're aware that you can't stick to your end of the bargain.

Taking you to court, sending the account to a collection agency or repossessing your car costs money and lenders have to make sure this is a viable option that will leave them with some degree of profit. So it's worth considering what your position is as a borrower before contacting them.

Let's say you've just bought (within the past 6 months) a $15000 car. It's still quite fresh from the showroom and has a high worth. By taking back the car and sending your account to a collection agency, the lending provider can still make back quite a bit of its outlay to you. After all, most of what they were planning on making off you was interest! In these circumstances, lenders will be more likely to undertake car repossession quickly.

But... if you're further into your car loan. Say you purchased that same $15000 car four years ago. A lender will realise that it isn't worth taking you to court for such a measly sum - and repossession could get complicated as they must provide you with any profits resulting from it... so you're most likely going to be able to negotiate over payments and see your lender's flexible side.

Good luck with it...