Talking About Tow Services

4 Situations In Which A Car Is Repossessed

3 September 2018

Rose Perkins

There are multiple different situations under which your car can become repossessed. As a car owner, it is important to understand the different situations under which you could lose access to your vehicle.  

#1 You Have Missed Multiple Payments

One of the most commonly known reasons for having a vehicle repossessed is because of late and missing payments. If you fail to make payments over an extended period of time, the bank that is backing up your loan may come after you. They have the ability to repossess your car to settle your debt, no matter how much debt you have left.

#2 You Have Failed to Carry Adequate Insurance

When you have a loan on your car, most banks require you to carry full coverage insurance on your vehicle. They require this, so if something happens to your vehicle and it is totaled in an accident, they will still get the money that is owed on your vehicle.

In specific states, if you fail to carry full insurance on your vehicle, that can be seen as defaulting or failing to meet the condition of your loan. Some banks take failing to maintain adequate insurance with the same seriousness that they do missed payments. In certain states, failing to carry insurance or carry enough insurance can result in your car getting repossessed by the lender of your car loan.

#3 You Didn't Pay for Work on Your Vehicle

Another situation in which a car can get repossessed is when you fail to pay for work on your vehicle. If you take your vehicle to a mechanic and you agree to get certain work done on your vehicle, you are expected to pay for the work.

If you get your vehicle repaired and then just leave your vehicle there for weeks, something is going to happen to it. Oftentimes, if your vehicle is under a loan, the mechanic will contact the creditor. Your creditor may repossess the car and pay the mechanic. If your vehicle is not under a loan, the mechanic may put a mechanic's lien on the title.

#4 Your Vehicle Was Towed Somewhere

Another way you can get your vehicle repossessed is when your vehicle is towed and impounded. If your car is impounded, your creditor may pay the fees and repossess your vehicle if you leave it there. Leaving your vehicle at a tow lot can result in you losing possession of your vehicle.

Keep your vehicle from getting repossessed by making sure that you carry adequate insurance and pay your car payments. Don't leave your vehicle at an impound lot, and always pay your mechanic for the work that they do.

For more information, reach out to companies like Valley  Express Auto Repair. 

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