Advice and tips to avoid car repossession - The Bills.com Blog

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Advice and tips to avoid car repossession

Wednesday, Jan 2, 2008

Question: My friend financed a car for me and i had an accident. She switched to liability coverage prior to the accident. Since the accident in June 2007, we funneled as much money as possible to the auto repair shop and have not made any payment on the monthly note greater than 15% (if that.) I was told over a phone conversation with nissan that they wrote it off as a loss. The mechanic advised me to allow him to put a lien on the car to prevent Nissan from repoing the car. He has recently told me that the lien "did not go through"(?) and that the car may not be there for long because Nissan is trying to take it. MY circumstances are changing and i expect to be able to pay the mechanic's balance and the months of notes that I have not paid. Damage to the car=9,500, mechanic has received 5,500 and my note is 650 per month. What situation am I in? I would prefer to keep my car and somehow continue paying the note. What can be done?

Answer: As the company that financed you car, Nissan has the first lien on the car. There is no way that
the car mechanic would be able to place a lien on the vehicle given the fact that you still owe Nissan a balance. What you owe to the mechanic is separate from what you owe Nissan. You cannot club both the amounts together. Even if Nissan did write off the account as a loss, they still have the authority to acquire the asset and will keep trying to do so.

If you wish to keep the car, then you should get in touch with Nissan immediately to discuss your payment options before they actually do repossess the car. It is more likely that they will continue with the loan if you can reach a current status on your past due payments. Believe it or not, they do not want your car; they want
the money and will be more than willing to deal with you. They generally lose money on repossession. Once a vehicle is repossessed, the vehicle is auctioned, any remaining balance is charged to the debtor. This includes the cost of the repossession. In all likelihood, you will end up paying more money if you let them repossess the car right now.

As far as the mechanic is concerned, he should not have a problem to release the car once you pay the entire amount that is due to him. If you cannot afford to pay the amount in lump sum, you should try to reach a payment agreement with him as well.

I hope the information provided helps you Find. Learn. Save.

Best,
Bill
www.bills.com

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User Comments

1. Posted by MICHELLE on Wednesday 3rd December 2008 08:45

I HIRED AN ATTORNEY ON OCT 3, GAVE HIM A 500. RETAINER, I WAS SUPPOSE TO HAVE MY CHAPTER 13 BANKRUPTCY FILED FIRST PART OF NOVEMBER. ON NOVEMBER 28, MY CAR WAS REPOSSESSED. ATTORNEY NOT RETURNING MY CALLS. CAN I GET MY CAR BACK THROUGH CHAPTER 13?

2. Posted by Bill on Friday 5th December 2008 08:41

Maybe, but it will be difficult since they have already repo'd auto. Most likely what will happen is the deficiency balance owed will be included in the bankruptcy. You may want to seek counsel from a different local attorney.

3. Posted by derek on Monday 29th December 2008 19:48

I was in a car accident on 11/16/08 the damage to the car was 11,000 the car is a 05 Altima and my insurance company said that the car wasn't totaled. I'm currently unemploymented and my payments are $500.00 dolars a month. the auto repair shops as had my car since 11/17/08 and as of 12/29 it's not fixed yet. My car insurance cover the first 30 days and are not currently covering me. The auto repair shop is refusing to pay for my rental even thought they have stalled in fixing my car!! I don't want the car and would like Nissan to take it from me! Allstate has already given mre the 11,000 to fix the car, what should I do if I don't want the car any longer..

4. Posted by Nithin on Tuesday 30th December 2008 09:49

You should have picked a auto repair shop that was recommended by the insurance firm or one that you trust. If you still have a loan on the car, then you cannot return it without it being considered a repossession. A repossession will not only hurt your credit, but you will still be liable to pay the balance (if any) after your finance company sells your vehicle. You will have to be stern with the auto repair shop, and tell them that if they do not fix the vehicle in a reasonable time frame, then you will report it to the consumer bureaus and the BBB. If you do not use the money given by AllState to repair the car, it might even be considered insurance fraud, so please consider your options carefully.

5. Posted by valencia on Wednesday 1st July 2009 18:37

I bought a car from a used car dealership credit place and I called a week ahead of time to see if its ok to be about ten days late on my car note and the lady told me it would be ok but when it was time for my car payment to be made another person said i had to pay it today or they would repossess my car and the lady said she never said i could be late but thats a complete lie and that what she's telling the other guy she said that day she would note it on my account but never did. the company is trying to get my car what should i do i have no proof she said it was ok that is misleading information to tell me that what do i need to do, do you think a lawyer would help me out with this case.Every since Ive bought the car Ive had problems.

6. Posted by Bill on Thursday 2nd July 2009 09:59

It's unclear from your message if you are current on your payments. Remember, the finance company really wants your payments and not the car, unless they are unscrupulous. Make the payments and your chances of repossession are zero. The finance company can charge you a fee if you pay late. Read your sales contract or loan agreement for information on late fees.

7. Posted by nicole on Friday 6th November 2009 12:01

my credit report says my car finance co has written off the debt.can they still repo my car? I am masking pymnts trying to catch up!!

8. Posted by Bill on Friday 6th November 2009 14:41

If you are past due with the payments on your auto loan it is possible that they can repossess the vehicle. Generally speaking, the lender does not want to repossess the vehicle. They would rather have you continue to make your monthly payments and pay off the loan as you agreed when you purchased the vehicle. However, if it appears to them that you will not be able to continue to make the payments they will want to repossess the vehicle so they can sell it and recoup as much as possible. You may want to contact the lender directly and see if you can work something out with them so that the vehicle does not get repossessed. Ultimately, the decision is up to the lender.

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