Monday 12 October 2009

Buy Repossessed Cars USA

Buy Repossessed Cars USA

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Wednesday 30 September 2009

Friday 25 September 2009

Wednesday 26 August 2009

How To Buy Repossessed Cars

With so many cars being repossessed nowadays, buying one can save you a lot of money. But where can you find repossessed cars and how do you buy them?

Car repossession occurs when finance companies repossess a vehicle from an owner for non payment. For further details on the actual car repossession process, read Why Is A Car Repossessed. Once the vehicle is repossessed, the lender will look to sell the car as quickly as possible, which can mean that the price will often be lower than the going rate - excellent news for any prospective buyer.

Often people who cannot afford to buy from a conventional car dealer will look to buy a repossessed car. Repossessed cars are often cheap and in mint condition. Our step by step guide for knowing how and where to buy them will help you if buying a repossed car is something you are interested in.

1. Where are Repossessed Cars Sold?
There are various methods for selling repossessed cars, depending on where you live. The best place to start looking for one is in a car auction. The majority of repossessed cars are sold in car auctions. On the bottom right of our homepage there are links to local car auctions in your area.

Read our guide on Buying Repossessed Cars At Auction for further advice on buying at a car auction.

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As well as auctions, it's also a good idea to get in touch with local car dealers. A good local car dealer will often be attending these auctions and picking up bargains himself. Speaking to them for advice can be helpful and often they may have purchased repo cars themselves and are looking to sell them - this means you won't have to attend a car auction yourself and go through the bidding process. Their experience can help you.

If you are planning on attending an auction make sure you know what you are doing. Reading our guide on Bidding For Repossessed Cars At Auction will help.

Another option would be to contact the bank themselves. They often have lists of repossessed homes as well as repossessed cars. These lists are made up of repossessed properties and vehicles which are due to go to auction, sometimes you can get access to a car before it goes to auction.

2. Payment
When purchasing from a car auction, its usually preferable to have cash available. Many auctions nowadays accept other forms of payment so it's worthwhile contacting the auctioneers prior to attending and finding out.

When purchasing from a bank, they may be interested in setting up a new finance plan with you for the vehicle. Make sure you stick to manageable payments - otherwise it could be you facing car repossession.

3. Check The Car
When buying from an auction, it's very important to remember that cars are sold "as seen". this means that there won't be a refund available in the majority of cases, so it's important to check the car before you buy.

Our Avoid Buying a Stolen Car article will help as well as our guide on buying repossessed cars at auction.

4. Buy The Car
When buying at an auction, it's very important to understandthe bidding process. When bidding it's very easy to end up paying over the odds, make sure you have a maximum price in mind for any car and stick to it. Being patient is the key, your car will come but don't rush it and end up buying a clunker. Remember there are no refunds.

Read our guide on bidding for repossessed cars at auction.

Repossessed Cars: MJ Kid Kicks Repo Man In Ass

Funny video from reality TV show, Operation Repo. The US programme shows “real-life” car repossessions. In this episode, the team go to repossess a young man’s car and find themselves on the end of a Michael Jackson superkick.

Repossessed Cars: Types of Cars

Many buyers of cars rave about the amazing deal they picked up. Not only can they buy repossessed cars at knockdown prices but there is also access to a wide range of ex-demonstration, company, fleet and ex-rental cars. You too can reap the benefits of buying a bargain used car if you follow the tips which are laid out below.

Most important when buying any prospective car is to try and establish how well the car had been taken care of previously.

Questions to Ask?
Was the oil changed on time?
- Was the car given routine services and maintenance?
- Were repairs made immediately when required?
- Was the car ever involved in an accident?

As a buyer of repossessed cars, being able to find the answer to these questions can help you find the bargain repossessed car that you have been looking for at a superb price. It’s important to be extra careful and following the correct steps can ensure you pick up a bargain repossessed car.

Types of Used Cars
Cars which are available in auction, are often classed as repossessed but can go by a variety of names. It’s important to learn the terms so that you get a better idea of what type of car you are buying and what to look for whne inspecting a vehicle.

1. Company Car
Company cars are usually bought by a company or organisation as new and then driven by an executive of the company for a period of time. Company cars are often
sold on in auction after a few years use but have often accumulated many miles during that time.

2. Demonstration / Demo / Ex-Demo Cars
Demo or ex-demo cars are usually used by a dealership for customer test drives. They have often been driven by the sales staff, dealership staff or customers. These cars aften nearly new and are fairly low mileage.

3. Rental Cars
Rental cars end up at auctions after 2 or 3 years use by a rental company. Again these can be high mileage vehicles but many experts insist ex-rental vehicles are good value if in good condition.

4. Repossessed Cars
When an owner is struggling to keep up with car repayments, the car can be repossessed and sold on in auction. Repossessed cars can be a great option as they have often been looked after well and are only repossessed once the owner suddenly falls into financial difficulty.

5. Salvage Cars
Salvage cars are damaged vehicles which have not been repaired due to the expense in fixing them so they are sold to salvage companies or auctions for parts. Some salvage cars can prove to be a bargain, as they have been written off as non-roadworthy when in reality they have only little damage and can be repaired.
It’s recommended that you have a good knowledge about cars before attempting to try and buy a salvage car. If you don’t know what you are doing, they can be a risky proposition.

When buying any car, particularly repossessed cars it’s important to check the following:
- Age of vehicle
- Maintenance Records / Service History
- HPI Check / Car History Report
- Number of Previous Owners
- Mechanic Opinion
- Price

Read our guide for buying repossessed cars for further free information.

Repossessed Cars UK

If you are interested in finding out more about car repossession in the UK or where to buy repossessed cars then this site can provide you with full information on how to go about doing so.

Has you car been repossessed? Are you in the process of your car being repossessed? Are you struggling with payments for your car and facing car repossession? This website has been set up in order to give you free advice on repossession cars.

Are you interested in finding out where to buy repossessed cars? Find the best repossessed cars sale here at repossessed cars uk. We provide links to auctioneers hosting car repo auctions throughtout the UK. All our mentioned auctioneers have been checked in order that you can buy repossessed cars from reputable auctioneers. Simply click on the local regions of the UK listed in the bottom right. If you are unable to currently view the repossessed cars UK list then click on home at the top of this screen and the list will appear in the bottom right. We also provide buying tips and guides on how to buy repossessed cars and cars in general.

Repossessed Cars UK provide a comprehensive links and advice section, providing details of legal terms related to repossession cars, how to deal with car repossession bailiffs, as well as links to other organisations who can provide further help in resolving your situation if you are facing car repossession. Some of our information is applicable to uk repossessed cars scenarios specifically, however the majority of the info can be applied in most countries around the World.

If you have experienced car repossession and would like to share your story or have some information you would be interested in adding to Repossessed Cars UK then please do not hesitate to contact us by emailing info@repossessedcars2009.com

Repossessed Trucks

It’s not just cars which are sold at knockdown prices after being repossessed. There are other types of repossession vehicles which are also sold to the public, namely repossessed trucks.

Many owners of commercial vehicles suffer from struggling to keep up repayments and as a result, their truck or van will be reposed by the loan company. Lenders attempt to try and recover losses as quickly as possible, and don’t want to add to their costs by wasting further funds on storage. The best way for them to do this is to sell the repossessed truck in the fastest time possible at the most reasonable price they can achieve. This means that repossession trucks can be bought at a price which is significantly lower than the market rate. This is unfortunately, bad news for the person whose truck has been repossessed, as it is they who will pay the difference of the outstanding loan back to the lender once the truck has been sold. But where are these vehicles sold?

The best and safest place to buy repossessed trucks is at an auction. There are many auctions throughout the country which specialize specifically in reposed trucks and other repossession commercial vehicles. One of the most well known is Manheim Commercial lorryAuctions. These are located nationwide and give a buyer a safe environment and the security that their purchase transaction will be legitimate.

The advantage of buying at a repossessed auction is that you can make huge savings on the list price of most vehicles, however it’s important to note that vehicles are sold as seen so no comebacks in the case that you end up buying a lemon. Below are some important tips when buying at a repossessed trucks auction.

1) Go on a trial run to a repossessed auction to see how it works and don’t do any bidding.

2) Look out for quieter auctions as there are less people to bid against.

3) Check the truck thoroughly and take a mechanic with you if possible.

4) Have a maximum bidding price in mind when you view the truck and STICK to it.

5) Don’t be drawn into a bidding war.

6) Remember there will be auction fees, find out how much these will be before you start bidding.

7) NO refunds if you buy a lemon so don’t forget this.

View our full list of where you can buy repossessed trucks.

Sunday 21 June 2009

Guide for Buying Repossessed Cars At Auction

When buying at a repossessed car auction, there is much more to do than just assessing the appearance of a car you are interested in. Further research is required before a purchase is made. Car auctions are widely regarded as being the best place to pick up second hand or repossessed cars at the best price, but it is also very important to note that people often end up paying over the odds or picking up a repossessed car which gives them mechanical problems.

For this reason we have put together a comprehensive guide to buying a repossessed car at a car auction near you. This will help to assist you especially if you are attending your first auction. If you are going to your first auction, we would recommend attending with someone who has been before and is familiar with the process or we would recommend only observing on the first occasion. Remember that casr are sold “as is” at auction, which means that the vehicles will be sold as they appear on the lot and once the highest bid has been made, it is binding.

Below is a guide to purchasing a repossessed car at an auction:

1. Take A Mechanic With You
It is advisable to take a car mechanic with you when attending an autcion, particularly if your knowledge on what's under the bonnet is limited. The expertise of a mechanic could save you lots of money in the long run so even paying him a small amount could help you pick up a good deal. It is important to check the car from top to bottom especially the engine. The majority of auctions do the utmost to make sure the repossessed cars on offer are at a high standard and are reliable. However, it is important to note that some vehicles which are below standard do make it through so it is important to make sure you avoid these kind of vehicles.

2. Study the Vehicle History
Before making a bid you should make sure you study the history of a vehicle. Auctions are often made up of cars which have previously been in accidents, and these are the cars which are usually being sold cheaper than the market rate for the specification of car. It is important to note that these cars may cause problems by not running properly especially if they have been in a major accidents and repaired. Slightly accident damaged motors can often prove to be a bargain so try to keep an eye out for these.

3. Have a Price in Mind and Stick to it
Do not bid too much for a car. It is very easy to go above market price when bidding so we would advise to calculate a price for a vehicle you are interested in and don’t go above this price. Repossessed cars often get overpriced when there is a bidding competition. In these cases we would advise to not get involved and let the winning bidder take it. If the price becomes too overinflated it may be better to look at other options.

4. Check the Pedals and Steering Wheel
A very simple tip when buying at auction or buying any used cars is to check the pedals. These are usually not replaced or changed so it can often be a giveaway when the exterior of a car has been modified or repaired to make it look almost new. If the pedals are worn and the outside of the car looks brand new then you know that something has been changed. It is recommended to check the paintwork thoroughly and also have check the steering wheel. Move it back and forth, any clunking noises and this is a car we would not recommend you buy.

5. Carefully Examine the Frame
If a car has a damaged frame, this would indicate that this is a vehicle which has been involved in a major accident at some point in its history.

6. Run A Finger Into The Edges
When examing the car we would advise to run your finger into the edges of the paintwork, rough spots indicate that the car has been fixed after being in a major accident. These rough spots appear when masking tape has been applied to the car bodywork during a paint job. Also look for changes in shades of colour. New resprays may have a slightly different shade of colour - another giveaway that a car has been repainted after a collission.

In summary its important to not rush into buying something you are not sure about. You should have a good feel about the car and make sure the price is right. If its something you are planning on driving for a while why push yourself into buying a car at the first auction you attend. Would it not be better to attend a few auctions, learn the process and wait for the right car at the best price to come along?

Repossessed Cars - How to Avoid Buying a Stolen Car

Last year, 350,000 cars were stolen in the UK. If you were to accidentally buy a stolen car, you may have no right to keep it even if you handed over your own money for the car. Below is a guide on avoiding how to buy a stolen car. Some of these tips can be used when trying to buy repossessed cars.

1) Telephone Numbers
Check the number on a car advert. Mobile numbers are almost possible to trace, so try and get to speak to the owner on a landline. Be wary if you are asked to call at a specific time, this could be a phone box number.

2) Viewing
Arrange to view the car in the daytime at the address the car is registered to. Don't agree to have the car driven to you or meet in a public place like a lay-by or car park. If you are asked to do this you should be suspicious.

3) Check Documents
Ideally every car seller will provide a V5 log book which is its registration paper, MOT, Tax, Service history and receipts for maintenance work. Check the seller's name is on the registration to make sure they have the right to sell the car. Ask them for ID to confirm this.
Check the VIN number on the vehicle registation papers. VIN stands for "Vehicle Identification Number" and every car has a unique one.
Check the registration matches the car's number plate. Hold the V5 log book up to the light and check that you can see the DVLA watermark on the paper. Never buya car without a V5 log book, ewven iof the seller claims that he has sent it away to update the information to the DVLA.

4) VIN and Etching
A stolen car that has its VIN changed is a "ringer". Some car models have the VIN etched on the windows or the headlamps of the car so its important to look for these. Be wary if there are stickers on windows as this may be an attempt to conceal numbers that don't match the vehicle.

5) Inspect the Vehicle
Check the locks as thieves replace locks, also inspect the vehicle thoroughly to see if there is any damage. Check the paint in the boot by removing the carpet where the spare tyre is. The inside should be the same any different could indicate the car has been resprayed.

6) Car check
There are many companies offering car checks and HPI checks on vehicles for a small fee. This will tell you if the car has any outstanding finance, it has been written off or if it has been registered stolen. They will also tell if you if it is registered as SORN (Statutory Off Road Notification), this means the car has been registered as not road worthy. It is worth paying this and avoiding bigger headaches after purchasing a stolen car.

7) Instincts
Always trust your instincts. If the deal feels at all suspicious, you have the right to just walk away, there are plenty of other cars available.

Repossessed Cars - Buying At British Car Auctions

This video from British Car Auctions, gives you an insight on what actually happens at an auction and how the bidding is done. Car Auctions are a great place to find repossessed cars and British Car Auctions are a nationwide auctioneer.
When attending an auction we would advise to always have a maximum bid in your mind and stick to this figure and don't be tempted to go over it. There are plenty of other cars available don't be sucked into overbidding on one. To find out more about auctions feel fere to read our free informational auction guide so you know which is the best repossessed car to buy.

Repossessed Cars Example Scenario

Below is an example scenario which happens to many people when their car is repossessed.

A) Car value £25,000
B) Deposit £5,000

C) Loan Amount £20,000
D) Repayments £5,000

E) Still Owed £15,000
F) Car Auction £8,000

G) Deficiency £7,000

Explanation
A) In this example, £25,000 is the sale price for a new car.

B) The buyer puts down £5000 deposit.

C) The loan amount borrowed from the finance company is £20,000.

D) The buyer begins to make repayments, lets say for example they make £5,000 worth and then run into financial difficulty and are unable to make further payments. The lender goes ahead and repossesses the car.

E) The amount still owed to the finance company is 15,000 after the car is repossessed.

F) After repossession, the finance company opts for a quick sale through a car auction and sells the repossessed car for £8,000.

G) The Deficiency is the amount the loan company will look to recover after the car has been repossessed. In this case the defeciency amount will be £7,000.

If your car has been repossessed in this way, you can expect the loan company to chase you in order to recover the deficiency amount. you can also expect your credit rating to be affected if repayments are not made or even face bankruptcy.

Saturday 23 May 2009

Bidding For Repossessed Cars At Auction

When attending a car auction, there are certain techniques which can be implemented to ensure you get the bargain repossessed car that you have been looking for:

1. Take a Trial Run
Bidding at auction is not necessarily straightforward for a first timer. We advise going on a trial run by attending the auction to observe and see how it works. This will give you an idea of how much time you have to view the cars, registering and getting the catalogue and most importantly how the bidding process is carried out.

2. Look for Quiet Auctions
Auctions attended by a large number of people are often the hardest to pick up a bargain. It doesn’t take a genius to see a bargain and the more experienced car traders will be looking to snap up those cars too. British Car Auctions and Manheim Car Auctions are both well known auctions all over the UK selling repossessed cars, so attending these would be the best option for the inexperienced. We would advise to check the auction times and go for a weekday which will tend to be quieter. Buying right at the end of the year is also recommended as car dealers tend to slow down on their buying during this period, so the auctions tend to be quieter.

3. Check the Car
We advise taking a mechanic with you or someone who knows about cars. Check the car you are interested in properly but remember that time is limited and you probably won’t get as good a chance to check the car as thoroughly as possible. Look for any signs that the car has been in an accident, our guide for buying repossessed cars at auction will help you. When they bring the car forward look for any signs of smoke when the engine is started, or listen for any abnormal noises.

4. Look Like a Car Dealer
This may sound trivial but always remember that genuine car dealers are extremely experienced and attend auctions regularly. They see the same faces and so can recognise a new one. Often they can use tactics of bidding with no intention of buying in order to get newcomers to keep increasing bids and end up paying more. There is no need to attend dressed up looking like Del Boy but then its always important to know that its rare to see a car dealer in an expensive suit either so try and find some middle ground.

5. Bidding
This is the most important part of the process. We would advise standing in the trough with the other car dealers, rather than the stand seats where the private buyers usually sit. When bidding, raise your catalogue for your first bid to get the auctioneers attention, a nod will be sufficient for further bids. If you attend the auction with someone else, make sure you don’t accidentally start bidding against each other, this happens more often than you would imagine, so its best to decide on one person for bidding.

6. Have a Maximum Price and Stick to it
When attending auctions, it is very easy to become interested in other cars and forget the one you went for. Make sure you stick to the car you like and also stick to the maximum price you set yourself. Anyone can win an auction, you just have to keep bidding, the secret is knowing when to stop, after all there will be more auctions so don’t feel upset if you are outbid, the nxt auction is only a few days away.

7. Fees
Remember that when you buy any repossession car, auctioneer fees will also need to be added to the price. These are usually set at 3% of the sale value and are payable upon purchase. Car auctioneers usually don’t accept credit cards but debit cards are allowed. Inform your bank beforehand that a large payment may be leaving your account on that particular day. This will save you hassle while the bank authorises the transaction. Cash is the preferred method of payment but there is usually a cash limit of around £10,000 due to money laundering laws.

8. Remember There Are No Refunds
Its important to remember when buying repossessed cars at auction, that there are no comebacks if there is a problem, so although you may be able to pick up a bargain, its important to follow these steps and not end up buying a lemon.

Monday 18 May 2009

Repossessed Cars

Thousands of cars are repossessed and become government & bank property through defaulted payments and court repossessions on a daily basis.

Because of the constant influx of vehicles and the enormous expense to store them, these repo cars are often sold as quickly as possible at a cheap price. This often incurrs huge losses upon the original buyer of the vehicle who was unable to fulfill the agreement made with the finance company.

This website has been produced in order to provide further information regarding repossessed cars including help and advice on what to do if your car is being repossessed.

Having their car repossessed can often have a huge impact on an individual's life and is becoming more and more common due to the current economic situation within the UK as buyers struggle to make all payments on time.

Singer Kerry Katona recently famously had two vehicles repossessed due to personal financial difficulty, illustrating how the credit crunch is affecting people from all walks of life.

The links section provides links to other websites offering further information on repossed cars and what to do in this situation.

For those of you interested in taking advantage of these low priced repossessed cars we offer a section on where you can buy a repossessed car and find cheap repossessed cars. Or alternatively you can click on any of the links in the bottom right to find where you can buy repossessed cars in your area.

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Car Repossession explained

If you are facing car repossession or you are currently struggling to make repayments on your car loan, we advise you to firstly contact the finance company and let the know your situation as they may be able to assist you.

If repayments are not being made, the lender has the right to repossess the vehicle. The lender will initially send you a default notice, this will provide you with the opportunity to make repayment. You will usually be given seven days to take action. If you don't have the money to put things right, you should explain this to the lender. In some cases they will agree to a new repayment structure. In other cases they may not agree on anything less than full payment and will take you to court. At court you can request for more time in order to make repayments, especially if you want to keep the car.

The lender will require a court order if you have repaid more than 50% of the total cost of the loan agreement (This excludes insurance). If you have repaid less than the 50%, the loan company will require a repossession order from the court in order to repossess the car. They are unable to take the car without this, however if they do get permission from you then they are able to take the vehicle. In the long run, it is sometimes better to just give back the car to the company.

If you are facing car repossession we hope this site will be able to assist you in providing advice on what happens and who can help you. If you have any information to add or comments to make we would be interested in hearing from you.

Repossessed Cars: What is a Default Notice / Court Summons

Before a car is repossessed a default notice will be sent out by loan company and if this is not complied with, court proceedings take place.

If a buyer fails to keep up repayments as per the agreement of the purchase of a car a lender will initially send out reminders of payment. Following this a default notice will be sent to the owner.

A default notice is a formal notification of arrears. A default notice will stay on a person's credit file for 6 years and will make it extremely difficult to obtain any further credit. For this reason it should treated as a priority and dealt with immediately.

If payments are in arrears the loan company MUST serve you with a default notice before any court action or legal proceedings take place. A default notice will provide details for immediate payment and if this payment is made there will be no further action taken. There is usually a time frame of 7 days when a default notice is issued before court proceedings.

Court Proceedings

After sending a default notice, the lender can start the process to recover the money by issuing a claim form. If you receive a claim form, you will know that the lender has started proceedings in the county court. This claim form will make it clear who is taking you to court, the amount of arrears and proposed action.

To avoid court action, it is advisable to contact the lender to establish a mutually acceptable agreement. Court action will result in the registering of a County Court Judgment or CCJ against you and the issuing of an Order by the court that the debt is repaid either immediately or by installments. So long as the debt is for less than £25,000 you will be able to apply to the Court for a Time Order to give you more time to repay the debt.

If you have been requested to repay the full amount, you can apply to the court to vary the order to a monthly payment you can afford. Filling in a N245 form, which can be obtained either from the court, or downloaded online, can do this. Generally there is a fee of £30 to be included with the Variation form; however, this can sometimes be waived if you are on a low income.

The N245 Varied Order form is your opportunity to inform the court of an offer of repayment you believe you can afford to pay each month. The court will pass the form onto your creditor for them to decide if the offer is acceptable or not, If the creditor refuses your offer, the court will take a look at your details and set a repayment the court believes you can repay. If the creditor accepts your offer, the order will be made for the amount you said you could pay.

A County Court Judgment will be registered on your credit file and will remain there for 6 years. However, if you repay the judgment before the 6 years are up, you can apply for a Certificate of Satisfaction. There is a cost of £10 for court fees. This will then be placed on your credit file that will be seen by any lender you use to apply for credit.

To prevent a County Court Judgment from being registered on your credit file, you need to repay the full amount requested within one month.

7 Ways To Avoid Your Car Repossession

As a result of the current economic climate in the UK, an increasing number of people are finding making repayments on car loans difficult and as a result their cars are being repossessed. Having your car repossessed can often be a huge financial strain as loan companies resell or auction the repossessed car as quickly as possible for a knockdown price and then chase you to pay the difference. If your car has been repossessed or you have been served with a default notice finding useful information can often be difficult.

But could this whole situation have been avoided in the first place? Below are some top tips on avoiding car repossession:

1) SHOP AROUND - When you first go ahead with a purchase its important to check the market. There are many companies offering different rates and different terms. Shopping around can get you the best deal and ultimately save you money so payments can be more affordable during more difficult times.

2) DECIDE WHICH IS THE BEST TYPE OF LOAN FOR YOU - Secured loans, hire purchase car credit are all different types of loan. Check carefully which is most suited to you and your budget to avoid your car being repossessed.

3) DON’T BE PUSHED INTO ANY DEAL - When buying a car or getting a loan for a car you can easily be pushed towards the wrong option for you by commission hungry salesmen. Don't commit to anything until you have done your research. There is no harm in asking for a day or two to think about your final decision.

4) CALCULATE THE TOTAL AMOUNT TO BE REPAID - Although repayments may be low how much are you actually paying by the end of the agreement? Buyers often overlook how much they will end up paying and ultimately end up paying much much more.

5) CAN YOU AFFORD THE REPAYMENTS? - Are you buying over your budget? Is this really what you can afford. Sometimes the desire for having a nicer car than your budget can afford will bring problems when making repayments.

6) CHECK THE SMALL PRINT - When signing any agreement it is imperative to check the small print thoroughly and know your rights. Remember these contracts have been drawn up by cunning lawyers who are paid by the loan companies to make the deal seem more attractive and get the most out of you if you default on payments.

7) SPEAK TO THE LOAN COMPANY - If you are struggling with repayments, DO NOT HIDE. Often just speaking to the loan company can be the best way to avoid having your car repossessed. They may be able to adjust your repayment schedule or allow you time to come up with the funds.

If you found this article useful please feel free to find more information on car repossession or where to buy a repossessed car.

Repossessed Cars

As a result of the current economic climate in the UK, an increasing number of people are finding making repayments on car loans difficult and as a result their cars are being repossessed. Having your car repossessed can often be a huge financial strain as loan companies resell or auction the repossessed car as quickly as possible for a knockdown price and then chase you to pay the difference. If your car has been repossessed or you have been served with a default notice finding useful information can often be difficult.

But could this whole situation have been avoided in the first place? Below are some top tips on avoiding car repossession:

1) SHOP AROUND - When you first go ahead with a purchase its important to check the market. There are many companies offering different rates and different terms. Shopping around can get you the best deal and ultimately save you money so payments can be more affordable during more difficult times.

2) DECIDE WHICH IS THE BEST TYPE OF LOAN FOR YOU - Secured loans, hire purchase car credit are all different types of loan. Check carefully which is most suited to you and your budget to avoid your car being repossessed.

3) DON’T BE PUSHED INTO ANY DEAL - When buying a car or getting a loan for a car you can easily be pushed towards the wrong option for you by commission hungry salesmen. Don’t commit to anything until you have done your research. There is no harm in asking for a day or two to think about your final decision.

4) CALCULATE THE TOTAL AMOUNT TO BE REPAID - Although repayments may be low how much are you actually paying by the end of the agreement? Buyers often overlook how much they will end up paying and ultimately end up paying much much more.

5) CAN YOU AFFORD THE REPAYMENTS? - Are you buying over your budget? Is this really what you can afford. Sometimes the desire for having a nicer car than your budget can afford will bring problems when making repayments.

6) CHECK THE SMALL PRINT - When signing any agreement it is imperative to check the small print thoroughly and know your rights. Remember these contracts have been drawn up by cunning lawyers who are paid by the loan companies to make the deal seem more attractive and get the most out of you if you default on payments.

7) SPEAK TO THE LOAN COMPANY - If you are struggling with repayments, DO NOT HIDE. Often just speaking to the loan company can be the best way to avoid having your car repossessed. They may be able to adjust your repayment schedule or allow you time to come up with the funds.

If you found this article useful please feel free to find more information on car repossession or where to buy a repossessed car.