How to Work With Car Companies About a Repossession

When you initially financed your vehicle, you had every intention of paying your monthly note in full and on time. You needed a car and had the income necessary to make those payments. However, an unforeseen event such as the unexpected loss of your job or a spouse's illness has caused your family some financial hardship. Now you are behind on car payments and the bank is not happy. Take steps to keep the repo man from taking your vehicle.

Instructions

1

Formulate a budget that you can live with. Find any way you can to lower your monthly bills. Cancel the cable and disconnect the land-line phone. Clip coupons and brown bag lunch every day. Quit smoking. Move back in with your parents, if you have to. Before you contact the finance company, you need to have a plan in place.

2

Contact the auto finance company as soon as possible. Avoiding them will only make them less willing to help you. Call them and tell them that you do not want to lose the vehicle.

3

Discuss the new spending plan you created, showing the car company that you are serious about getting your finances back in order. Explain the situation that has caused you to fall behind, especially those circumstances over which you have no control.

4

Be prepared to pay something immediately. The auto finance company may request some type of payment as a good faith effort on your part. This will display your sincerity and increase their motivation to work with you. They would rather have money than have to deal with a repossession.

5

Ask if you can refinance the loan. Some auto finance companies will work with customers in this manner. It will mean paying out the loan on a longer term, but it may lower your monthly payments and help you get caught up more quickly.