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Avoid Having Your Car Repossessed

New CarIt is well known that if you do not make your car payments on time and on a regular basis, you face the possibility of having your car repossessed by your lender. When you purchase the vehicle and agree to financing, your lender places a lien on the vehicle’s title. Should you, or any vehicle owner, default on the terms of their loan, the lienholder can legally take possession. This is something you definitely want to avoid.

 

Reasons To Avoid Repossession

 

The big reason you want to avoid having your car or truck repossessed is because it leaves you without a vehicle. That car or truck is most likely your transportation to and from your job. Without a vehicle, how will you get to work?

 

A repossession will also damage your credit history. Your payment history is one of the biggest factors in your credit score. Failure to make those payments will bring your credit score down and make it very difficult for you to borrow again in the future. The repossession will stay on your credit report for seven years, discouraging creditors from lending to you.

 

Strategies You Can Use To Avoid Repossession

 

Lenders want to avoid repossession at all costs. It costs them too much time and money. With that in mind, there are a few things you can do to avoid having the lender take possession of your vehicle. One easy solution is to sell the car. Now, you may not be in a situation where you can sell. The vehicle might be your only source of transportation. It is also possible that you may owe more than what the vehicle is worth.

 

Another strategy is to opt for a restructuring of your car loan. Approach your lender and ask if your loan can be restructured. The lender is more inclined to re-work your loan since it does not want to deal with a future repossession.

 

If your car is relatively new (10 years or newer), in good condition, and you have plenty of equity, you could consider a car title loan. Lenders such as Embassy Loans of Florida will use the car as collateral pay off the balance of your existing loan and develop a new loan with more favorable terms. If you have a second vehicle, this may be a solid option.

 

Avoid having your car repossessed at all costs. It will do great damage to your credit history. Talk to your lender if you believe you will have a problem with the payments. Your lender wants to avoid repossession just as much as you.



Embassy Loans is a leading provider of auto title loans since 2005

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Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

Monthly Interest Rates range from 1.5% to 2.5% (18% to 30% APR), with 15-18 Month Terms.

No Prepayment Penalties!

Embassy Loans uses “Title Loans” for advertisement purposes only and provides auto equity loans. Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” under Florida Statute 516 and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

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Frequently Asked Questions

What is an Auto Equity Loan?

An auto equity loan, sometimes known as a car title loan or a car equity loan, is a type of loan that allows you to borrow money by using your vehicle as collateral. The loan is secured by your vehicle, meaning you agree to use the equity in your car to back the loan. 

What is an Unsecured Personal Loan

An unsecured personal loan is a loan that does not require collateral. Funds are provided based on your credit worthiness and your ability to repay. 

What Is the Credit Builder Program

The credit builder program is designed to help individuals establish or improve their credit score with the primary purpose of building a positive credit history through regular payments.

Can i have more than one Loan at a time?

Embassy Loans can only extend one loan at a time and it’s advisable to start with one and focus on making payments in a timely manner to prevent default.

What happens if I miss a payment?

Missing a payment can have negative consequences, including late fees, a drop in your credit score, and potential default on the loan. Consistent, on-time payments are crucial to benefit from the program.