Voluntary Car Repossession
Car repossession takes place when the borrower is no longer able to pay back the money he borrowed from a bank or creditor. The loan gets into default and it seems the only solution would be to give the car to the creditor instead of giving the money one owes.
If it is not voluntary car repossession the procedure goes on like this. First, the owner of the car receives a warning that he or she is late with the payment and then a call. Next, follows a grace period which, if not respected in terms of making the payment, will bring along more warning and finally the repossession. You may discover that your car is missing either from your house or your work place. The repossession companies hire very smart individuals able to trace the car and take it back from wherever you may be. And the creditor is not everywhere forced to announce you beforehand of the repossession. So if you car is missing, and you have received warnings on missing the due payment, first call your creditor and not the police.
Some say that voluntary car repossession is a better option than the regular car repossession. First, you are supposed to talk to your creditor as soon as you figure out you will not be able to make the payment. Like this, you can give the car back to the lender yourself and avoid any unpleasant surprises or extra charges. If we are not talking about voluntary car repossession, then, the person left without the car will have to pay the repossession fees and the storage charges paid in order to get his car back if he or she wants that.
However, if voluntary car repossession occurs you should be aware that it still is repossession. The creditor will not ask for the above mentioned extra charges usually involved in non-voluntary car repossession, he may still declare repossession on you loan. Technically speaking, when it comes to papers and the status of your loan, you may find yourself in exactly the same situation.
Whether voluntary car repossession or non voluntary, the creditor has the rights to keep that good as some kind of compensation or he may choose to sell it to recuperate the money. The only positive thing brought along by the voluntary car repossession is that the sum of money you owe the lender will not be increased with unexpected charges of repossession and storage. It still is a deal.