Having a car repossessed is stressful. Being unable to pay your car payment and having your car taken away is a lot to handle. If you have been through a recent repossession, you are not alone. There are around 2 million repossessions in the United States every year. In this situation, you need to take action.
1. Reach out to your creditor about your options
As soon as your car is repossessed, reach out to your creditor to learn about your options. Find out how much is due if you want to get your car back. You also need to find out if there is a deficit between what you owe and what the car is worth.
2. Decide if you are going to try and get the car back
After speaking to your creditor, you need to decide if you are going to try and get the car back. If so, you will likely have to provide the creditor with a lump sum to catch up on missed payments. If you decide to let it go, you may still have to pay the deficit between the value of the car and your loan amount.
3. Arrange for transportation while you are without a car
It will take a little time to deal with a car repossession – no matter what you decide to do. In the meantime, you need to arrange for transportation so you can get to work and stay on top of your other responsibilities.
4. Explore options for finding another car
You have a few options for finding a car after a repossession. Start by looking for inexpensive options like 500 down used cars. Buy here pay here dealerships often have selections of used cars 500 down that are affordable even if you have experienced financial difficulties in the past. The key is to find a car and financing option that will work for you month after month so you do not face repossession again.
5. Rebuild your credit
The final step to take is to try and rebuild your credit. A car repossession can put a major ding on your credit and make it difficult to get traditional financing. One option for rebuilding your credit is to look for your next vehicle at buy here pay here car lots. Buy here pay here dealerships can provide you with financing even if you have poor credit or repossession in your past. Getting this type of loan and paying it on time can help you build your credit back.
Auto Action is a buy here pay here in Phoenix Arizona that helps people get into a vehicle – despite issues in the past. You can qualify for a loan by providing a few basic pieces of information. Get the process of finding your next car started by filling out the online loan application form today.