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BlogBlogUnderstanding Car Repossession and How to Avoid It

Understanding Car Repossession and How to Avoid It

Auto InsuranceIf you own a vehicle, you know that it is one of your most valuable possessions. It is your primary means of transportation. Your car helps to support you as it takes you to and from your place of employment, and if you were without it, life would be pretty difficult. That is why you must avoid having your vehicle repossessed. You need to understand the process of repossession as it can help you from having your car or truck taken away. Know that lenders do not want to take your vehicle from you since it costs them lots of time and money. You should do your best never to put yourself in a position where a lender may consider repossession. Please check with your provider’s policies and contracts.

 

The Effects of Repossession

 

The biggest effect of having your car repossessed is that you’ll lose your method of transportation. That can be a huge problem especially if you need to travel to and from your place of employment. Your credit report may also record a repossession, where it is likely to remain for seven years. As a result, lenders will be very wary if you ever try to borrow money again.

 

Also, even though you have lost your vehicle, it does not mean that you are free of your debt. You still have to pay back the balance of what you owe on your loan after the repossession. In many cases, a lender will end up suing you for the remainder of the loan and also for the costs associated with performing the actual repossession.

 

Avoiding Repossession

 

You might think you just want to give up and let the lender take your vehicle, but remember that lenders do not want to spend the time or money to do so. Make a payment when possible. Apply for a deferment. Call your lender and work with them. They may be willing to defer payments for a few months while you improve your financial situation. You might also work with the lender to restructure your loan. The lender may be willing to do so to avoid repossession. Your last ditch alternative may be to sell the car and buy another one that has a lower payment. This option only works if you have some equity in the vehicle. Otherwise, you won’t be able to pay back the lender.

 

Car Title Loans

 

You should avoid repossession at all costs and remain in good standing on your vehicle loan at all times. In doing so, you would be able to use your vehicle as collateral for a car title loan if you ever needed it. Embassy Loans has helped tens of thousands of car owners borrow using their cars and trucks as collateral. You can only get a car title loan when you have equity in your vehicle and have a loan that is in good standing. Keeping your car loan in good standing is, therefore, wise.



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.

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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.