Many times things get tight for college students and car payments stay the same regardless. Problem is some times they lose track and perhaps even change phone numbers to the new state where the college is located at. The biggest mistake for for these students is to think well since i’m out of state the bank or credit union won’t find me here. Some of you might think no, they don’t think that. I’m telling you some students feel they become immune once out of state until that morning comes and they are leaving to the store and find that their car is now long gone. They immediately think the car got stolen and call the police, the police advise them it has in fact been repoed.
What happens now? Did they really send a tow truck over 2000 miles to pick up your car? no after skip tracing you, they made a call to a network operator that picked up your car and currently has it in storage until the legal time period has lapsed which is typically 15 days to sell your car at auction. They will tow your car to the nearest auction and sell it at the block. But you do have options which include:
- Calling the bank, credit union or finance company and asking if they can please allow you to bring the loan current and get the car back.
- Possibly be allowed to pay the repo, skip, late fees plus the 3 months behind
- If you ignored the bank and were nasty as many are, the bank may not work with you but will still quote you the legal payoff. Will be much more than the value typically.
- Borrow money from someone to help
- File bankruptcy and they have to give you the car back until the BK is discharged
Best bet is to try and work something out with the bank, I have seen them add several payments to back end of the loan and bring you current one time for hard times. Just be honest with them. if you lost your job, tell them you are working on a new one. if you are at school tell them you are waiting for financial aid or a tax refund or tell them someone in the family will loan you some cash. They would rather give you the car back then sell it at a major loss at auction.