Purchasing a new vehicle is a major decision, especially when you need to secure a loan in order to do so. Not only are you shopping for a car, you’re also shopping for the best interest rate and loan agreement terms. This process can be even more difficult if you have poor credit.
Negative credit history can make it more difficult to find an agreement with reasonable interest rates and can also make it more challenging to get your application approved. It’s important to prepare and research ahead of time before you make a decision to ensure that you choose the best option for your situation.
A loan agreement that isn’t ideal for your financial situation increases the risk of vehicle repossession. In an auto loan agreement, the vehicle that you purchase is considered collateral. Collateral acts as protection for the lender. If a borrower fails to make payments under the loan agreement, the lender has the right to repossess the vehicle. A repossession will further harm your credit and negatively impact your history for up to seven and a half years.
When you need to secure a loan for the purchase of your new vehicle, take steps to make sure you get the loan that is right for you. If you enter a loan agreement with unfavorable terms, you may not be able to make loan payments in full and on time. When the terms of the loan have been broken, the lender may take steps to repossess your vehicle.
Seek Legal Advice
Flitter Milz is knowledgeable about the laws governing repossession of cars, trucks, motorcycles, boats and RVs. If your vehicle has been repossessed, Contact Us. We will review the details of your case at no cost, and evaluate whether your consumer rights were violated.