It's unlikely that your lender will repossess your vehicle while you're making payments as agreed upon. Reasons for repossession are outlined in your bank contract, so read it over for details or contact your bank. If you're unable to make your total monthly payment, call your bank immediately.
Regular Payments
Read your contract over to review the amount due and your payment's due date. If you make your scheduled payment on time every month, you aren't defaulting on your contract. Your bank contract likely also states that you must maintain a continuous, full-coverage insurance policy during your loan. If your payment has went up because the bank had to apply a full-coverage policy itself, call the bank immediately to rectify the situation. If you have insurance on your vehicle, you can submit proof and your payment will return to normal.
Late or Partial Payments
If you're unable to pay your entire car payment, call your bank right away. Pay as much you can only if you can pay the remaining due before your next due date. Your bank must agree to any payment arrangements. Until you have an agreement, the bank can still repossess your vehicle and you'll lose the money you sent in. Before you call your bank to discuss payment options, figure out your budget. Determine the dates and amounts you can pay until you're caught up. This way, you won't agree to a payment plan that you cannot afford.
Payment Agreement
If your bank is willing to work with you, ask to have the agreement in writing. Having the agreement documented protects you from repossession. Although the bank representative can likely update your account to reflect a payment plan, collection calls or repossession can still occur if you can't prove your agreement. After signing the document, keep a copy of it until your loan is paid off. Late or incomplete payments may affect your interest charges, resulting in a higher loan payoff amount.
Deferment
If your payment history with your lender is satisfactory, it may allow you to defer one or several car payments. A deferment allows you to skip payments without defaulting on your loan. Your loan term will then be extended by the amount of payments you miss. Your bank won't repossess the vehicle during the deferment period. You can use the time to get your finances back in order, find another job or catch up on other bills if you're struggling.
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