If there is one possession you depend on above all else, it is your car. From your daily commute to a trip to see friends, it gets you from point A to point B when you need it most. That is why, for many car owners, the thought of title loan repossession can be such a nightmare. This worry is even scarier if you are one of around 7 million Americans behind on their car loan.
Fortunately, repossessing cars is not something that happens overnight: it is an extended process that your title loan company wants to avoid just as much as you do! If you are worried about the possibility of car repossession, here is a quick guide to keeping your title loan process running smoothly.
How Can You Avoid Title Loan Repossession?
As you might expect, the easiest way to avoid losing your car is to make on-time payments. As long as you do not fall behind, there is no possibility of car repossession.
Find The Right Lender
Unfortunately, the wrong lender can turn the loan process into a nightmare. That is why it’s always important to partner with a reputable title loan company that works to support its clients.
Look for a larger, well-known company with convenient and generous terms—which we’ll discuss below. You should also check for friendly and supportive staff members who are eager to help you through the process, as well as competitive interest rates without unwanted fees.
Know The Details Of The Loan
Above all else, it’s wise to avoid getting caught by surprise with your loan details. Make sure you understand the lender’s general terms and conditions, as well as the stipulations of your specific loan. Don’t hesitate to ask clarifying questions to make sure you understand the loan agreement:
- What is the monthly interest rate?
- Are there additional fees, especially early payment fees or balloon payments?
- Can I roll the principal over by a month if I can’t make a payment?
If you’ve found a suitable lender, they’ll be more than happy to work with you to ensure that you understand the terms in full and that you feel comfortable with your payment plan. This is one of the best ways to avoid car title loan repossession.
Know Your State Laws
State repossession laws vary, so it’s wise to know how the repossession process works where you live. Again, any reputable lender should be able to help you understand what to expect. Be sure to ask how and when you will know if your car is ever in danger of repossession.
How Can You Pay Off Your Title Loan?
Even if you understand the terms and conditions in full, unforeseen circumstances can sometimes make paying off loans difficult. In cases like these, you’ll want to do what you can to come up with the money you need to avoid car title loan repossession.
Take Up A Side Gig
If you have time to work some extra hours for the duration of your loan, you can make some extra money in a few hours every week. Whether you sell handmade goods on Etsy or work as a virtual assistant, it’s easy to play to your strengths to find a great part-time job.
Look For Ways To Save
For the time being, see if there are any easy ways to reduce your spending. Eating out less or cutting back on subscription services may help you keep a little extra cash in your pocket.
Sell Old Items
If you have extra valuables lying around the house, consider selling them to make some extra cash. From old electronics to little-used clothes, get your unwanted goods in the hands of buyers with a yard sale or an online sale.
Borrow Money
If you feel comfortable seeking help from friends and family, you may be able to get a quick, interest-free loan to cover your next payment. Alternatively, you can also seek an extra loan from a lender, but this should always be a last resort.
On the other hand, if you already owe money, or if you already know you won’t be able to make the next payment, it’s a good idea to get in touch with your lender and go through the steps below to avoid a car title loan repossession.
What If You Already Owe Money?
If you owe a deficiency, there are a few things you can do. If you can’t pay for an extended time, your lender can help you with other options to avoid car title loan repossession. These may include the following:
- Refinance your loan with another lender
- Reinstate your loan by getting caught up on past payments
- Surrender your vehicle to avoid impacting your credit score
It is worth noting that these options are uncommon, as most clients find that communication and refinancing will offer all the support they need.
Should You Avoid Title Loans?
For some, worries over car repossession may make them consider avoiding title loans altogether. However, do not forget that a good title loan company is not trying to take your car. Repossession is a time-consuming and costly process, so their goal is always to keep your vehicle where it belongs: in your hands.
Instead, a good loan company wants you to get the money you need to get your finances in check! Working with the right lender gets you fast cash, also plenty of support to help you understand the process in full.
Choose The Right Title Loan Company Today
If you’re seeking a trustworthy title loan company, our team is here to help. We know your car is precious to you, and we want to help you to keep it.
To that end, we’ll work with you to ensure you’re comfortable with the terms of your loan. Our low interest rates, adjustable loan terms, and refinancing options make it easy to avoid worries over title loan repossession. Learn more about our simple and straightforward title loans today!
