When taking out a title loan, it is extremely important for borrowers to make payments on time. If payments are missed, a title loan lender could repossess the vehicle. If a vehicle is repossessed, what happens?
MaxCash is here to help explain the repossession process and how to avoid losing your wheels!
Repossession and Title Loans
If for whatever reason you are unable to keep making payments on your title loan, your title loan lender will unfortunately have no other option than to repossess the vehicle.
The way repossession progresses will vary from state to state, so it is important for you to talk to your title loan lender ahead of time about the logistics if repossession is possible. Ask how many missed payments will result in repossession based on their terms.
If repossession is deemed necessary, the lender will reclaim your vehicle and typically take it to a secure tow yard. It is up to you to contact the lender and arrange a repayment plan. If you fail to get in touch with your lender or try to retrieve your vehicle, it will then be auctioned off.
The money made from the auction will be used to cover the remaining loan amount. If the money made from the auction is less than what you owe, then you will still be responsible to make up the difference.
Keep in mind though, that repossession is the absolute last thing your title loan lender wants. Lenders do not want your vehicle, they want your business. They will make an effort to work with you before repossession happens, but it is crucial that you seek out their help and guidance.
Many title loan lenders will do everything they can to help you avoid the possibility of repossession, such as offer clear channels of communication to customers, loan term flexibility, and professional help from their team of experts.
Getting Your Car Back
Although your car may have been repossessed, it is not necessarily too late for you to be able to reclaim your vehicle from your title loan lender.
One way that you can get your vehicle back is to come up with the money necessary to pay off any past due payments, in addition to the costs of vehicle repossession.
Understandably, this may not be the easiest option. But paying off your debt can help you restart with a clean slate.
You also have the option of going to the tow yard to pay what you owe, and then the 30-day holding period will be removed. If you have a mobile notary to help you, you could go to the tow yard with the contract to reclaim your vehicle right away.
The lender will then pay for the place holding first, after which you will have to pay it back regardless of how long it may be. Usually borrowers can pay back that place holding rather quickly, so they can retrieve their vehicle sooner.
Need a Financial Leg Up? Get a Title Loan with MaxCash!
Sometimes life throws curveballs at you that you might not expect. It could be some bill or expense that you did not anticipate, that has now left you in a tough financial spot.
However, the solution to your problems could be closer than you think! Consider obtaining a quick, convenient title loan facilitated with the help of MaxCash!
MaxCash strives to help potential borrowers receive personalized help from compatible, trustworthy lenders. We are dedicated to our customers, that’s why we are available seven days a week, from 5am to 10pm. We have built close relationships with the best title loan lenders in the nation, so we could offer advantageous benefits and quick service.
We have made it easier than ever for inquirers to get in touch with us. You can reach out to us by:
- Calling us on our toll-free number at (833) 207-9052
- Emailing us at Info@MaxCash.com
- Coming down to our physical office at 1270 E. Broadway Rd, Suite 208, Tempe, AZ 85282