How To Recover After A Vehicle Repossession In Missouri

A car repossession can dramatically change your life; without access to your vehicle, you can struggle to commute to work and make ends meet. At Missouri Title Loans Inc., we frequently work with clients facing tough financial challenges. If you’re seeking assistance with car repossession, we have some advice to offer.

In this guide, we will outline what to do after a car repo and the steps to recover your vehicle. We will also explain how one of our emergency loans, including title loans and signature installment loans, can help you cover fees.

What Are Your Rights During A Car Repossession?

Lenders may not be required to notify you before car repossession, but they cannot force or trespass to take your vehicle. If the agent acts aggressively, you might have a legal claim.

Additionally, lenders aren’t permitted to repossess the car if they “breach the peace” during the process. It may also be illegal for an agent to take the vehicle if you object. Moreover, your property should not be damaged during repossession. For example, if your vehicle is locked inside your garage, the agent cannot break the door to enter.

Another important thing to remember is that even if the lender has the right to repossess the car, they cannot take items inside (this might not apply to car accessories). If you have valuables in the vehicle, the agent must give you a list of all the items and explain how you can get them back.

What to Do After A Car Repo?

Your car can be repossessed if you miss auto payments for more than 90 days or violate other parts of the loan agreement. If your car is repossessed, what options do you have to get it back? There are several steps you can follow after a repo to recover your vehicle, which involve fixing the issue that caused the repossession.

Here are the four steps to take after your car gets repossessed:

1. Find Out Why Your Vehicle Was Repossessed

If you haven’t made your payments on schedule, the reason for repossession should be clear. However, failing to maintain the required insurance can also be considered a default in some states. Be sure to contact your lender to find out the specific reason for your current situation.

Once you understand the reason for the repossession, you can take the necessary steps to resolve the issue and retrieve your vehicle. Call your lender to verify the reason for the repossession and learn from them what steps they require for you to get your car back.

2. Reinstate The Loan

Check the loan agreement to see if the lender offers this option. Reinstatement involves paying the repossession fees and the overdue amount. If you are allowed to do this, your loan will be current again. This means you can continue making payments as usual, and you will keep your car.

You should definitely consider this option if you're confident you can follow the repayment schedule and the extra fees are manageable within your budget. Those having trouble making payments should consider cutting costs by buying generic groceries, canceling unnecessary subscriptions, or avoiding costly entertainment options.

3. Redeem The Vehicle

Another option is to redeem the car by paying off the entire loan, including any storage and repossession fees. Redeeming the vehicle is the most costly choice, but it grants you full ownership of the car.

You can also go to the auction where the lender or the repo agent plans to sell the vehicle. In that case, you might be able to buy it back, but you must cover the entire balance and associated fees.

Please remember that you might still owe money even after selling your vehicle. Deficiency balances are common, especially with new car loans. You will lose about 10% of the vehicle's value as soon as you drive off the lot, and after repossession, you'll need to pay any extra costs.

4. Negotiate To Get Your Car Back

If you don’t have extra cash on hand and the other options aren’t feasible for your situation, you can always try negotiating with the lender. Be honest about your circumstances and explain what kind of payments you can manage.

Selling the car is the lender's last resort. That’s why many specialists prefer keeping their clients active rather than auctioning off the car. Rectify the issues that caused the repossession quickly to get your car back and avoid the auction.

How To Rebound Financially After A Car Repo

Once you understand what to do after a car repo, it’s crucial to avoid ending up in the same situation again. You should modify your approach to managing your car payments to make sure you never fall this far behind again. Following money-saving tips can also help you rebound financially from the effects a car repo can have on your budget.

Here are a few tips that will hopefully help you stay on track:

• Create a new budget that includes the loan payments: Simply thinking that you’d be able to set aside enough money from your next paycheck to cover the loan is not enough. You need to prepare your budget for this financial downturn. Start meal planning, cancel a few subscriptions for a couple of months, use coupons, and always keep track of where your money is going.
• Don’t borrow more than what you actually need: You should be able to include the loan payments in your budget comfortably. To make sure that the additional monthly expense is manageable, follow the general guideline and try to keep your debt-to-income ratio below 36%. Anything above that can be challenging to keep up with.
• Set up automatic payments: To ensure you never forget about making your loan payment, log into your bank’s app, navigate to the payment settings, and follow the prompts to enter your payment preferences. You can avoid forgetting about payments by setting it to automatically get taken from your bank account on the due date.
• Always stay in contact with your lender: If you ever start having problems managing your financial obligations, inform your lender about it. Don’t wait months for the situation to spiral out of control. The simplest thing you can do is keep the expert updated to show that you’re not planning on defaulting.

How Can Emergency Loans Provide Car Repossession Help?

Whether you are in danger of having your car repossessed or it has already happened, Missouri Title Loans, Inc. can help with our emergency cash loans. These allow you to borrow money within one business day to handle emergency expenses. You can borrow quick funds to make late car payments or handle the fees associated with redeeming your vehicle.

We offer Missouri title loans, but these loans require you to own your vehicle outright. If your car has been repossessed or is still financed, you will not qualify for a title loan.

The emergency loan we offer that can help is a signature installment loan. This unsecured loan lets you borrow up to $1,500 by providing your signature and agreeing to repay it in fixed installment payments. As long as you can prove your income and checking account, you can borrow money today to afford car payments to avoid repossession.

Borrow Missouri Signature Installment Loans – Receive Up To $1,500 Today!

Need fast emergency cash for car payments? Missouri Title Loans, Inc. can help with our signature installment loans worth up to $1,500. Get approved the same day you apply and receive your cash within one business day. Start the process online – fill out our online contact form and get approved in person at one of our Missouri store locations in less than 30 minutes!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.