Voluntary Automobile Repossession
The car one has recently acquired may be in his or her garage but nor for long if he or she refuses or is unable to keep up with the payments to the bank.
True, more and more people resort to making loans in order to acquire goods some of which are cars. But they do not realize how hard it is to actually finish paying back to the bank compared to giving a signature and getting the long wanted loan for the dreamed car. So they find themselves facing cruelty called either non voluntary or voluntary automobile repossession.
The voluntary automobile repossession is the last measure one can take in order to somehow pay back the creditor. After not being able to carry out a monthly payment, the debtor already has gone into default and in some states, based on the contract signed when making the loan and on state rules and laws, the debtor has the right to claim the vehicle right the following day after the due date has not been respected. This is indeed harsh and most creditors offer a period of time of about three months so that the debtor may find resources to pay what he owes to the bank and this period is called the grace period. After this period of time, if still nothing has come out of the debtor’s pocket, the bank will surely enforce taking the car from the credit consumer.
It is so much better for the consumer when he goes for voluntary automobile repossession. This means that the debtor realizes he can no longer keep paying the monthly required amount of money and he declares his situation to the bank or the creditor willingly taking the vehicle to the lender. This will save him the trouble of covering extra expenses coming as fees otherwise charged by the creditor for repossession and storage of the automobile. Voluntary automobile repossession is a more honest and friendly way of dealing with a situation in which the debtor feels he unable to face up to his obligations.
Voluntary automobile repossession usually occurs when selling the car to somebody else is not allowed as the creditor is considered the real owner of the good until the whole loan is cleared. It also occurs when selling the car to another party has not been achieved in due time to fit with the deadlines established by the creditor. In fact, voluntary automobile repossession is very much like admitting you have lost a battle, but not necessarily the war.