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7 Steps to Take After a Car Repo

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Having your car repossessed isn’t a great feeling, not to mention it’s inconvenient! However, you may be able to get your vehicle back. Here are seven steps to take if you find your car has been repo’d by your lender.

1. Know Your Repo Rights

7 Steps to Take After a Car RepossessionYou have rights when it comes to a vehicle repossession, and there are things that a lender and repo man can and can’t do when they recover the car.

After your vehicle is towed away, you have the right to know where it is sent so you can recover your personal items from the cabin.

The recovery company hired by your lender isn’t allowed to repossess your car out of your locked garage or “breach the peace” while they take it (such as breaking your door down to get to it). They can, however, repo it while you’re at work, in the grocery store, or right from your own driveway.

2. Contact Your Lender

When your vehicle gets repossessed, there’s usually a reason. Oftentimes, it’s a response to missed payments and defaulting on the loan. Your lender can act as quickly as allowed in your loan contract. Some reserve the right to take your car after only one missed payment, so check your loan contract for details on how soon they can repo your vehicle.

After your car is repossessed, contact your lender and ask exactly why. Although they have likely sent you in writing about the repo, you should still contact them. While the most common reason is missing payments, some lenders repossess vehicles because of a lapse in auto insurance coverage. See if you can work something out with them quickly and solve the issue.

Some lenders offer you the ability to reinstate the loan if you make up all of your missed or late payments, or they may ask for the full loan balance in one lump sum payment. You won’t know your options until you ask, so act quickly if you want a chance to get the car back.

3. Consider the Auction

After a vehicle is repossessed, it’s usually put up for auction. Most lenders send you a letter telling you when and where the auction is set to take place, since you have the right to bid on the car and gain full ownership if you have the cash.

If the vehicle is purchased at auction, that selling price is put toward your loan balance. If the auction didn’t yield enough money to cover the total balance of your auto loan, this is called a deficiency balance, and you’re responsible for paying it.

4. What’s Next for You?

If your car was repossessed and you’re unable to reinstate the auto loan, it might be a better idea to let it go. If you’re behind on the payments due to an unforeseen life event, or if you’re in over your head, it may be a better idea to pay the deficiency balance, if there is one, and move on.

Take time to evaluate what you need next regarding your financial health: can you afford the payments if you get the vehicle back, and are you at risk for getting the car repossessed again?

5. Know Where Your Credit Stands

After a repossession, your credit reports aren’t going to like it very much. Repos can cause major damage, and have the potential to lower your credit score around 100 points, but this varies. Keep in mind, the actual repossession is only one part of the credit damage you incur after a repo.

The missed or late payments that likely lead to the repossession hurt your credit, too. Payment history is the single most influential part of your FICO credit score, making up 35% if it. A vehicle repo and any missed payments associated with it can remain on your credit reports for up to seven years before they fall off.

After a repossession, check your credit reports, see what’s being reported, and learn where your credit score sits. You can request your credit reports for free from www.annualcreditreport.com.

6. Getting Another Vehicle

After a repossession, most lenders aren’t likely to consider you for auto financing for a while. If the repo on your credit reports is less than a year old, you’re likely to be turned down for a car loan by most direct and third-party auto lenders. For those who need a vehicle immediately following a repossession, there are dealerships that aren’t as concerned about your credit reports as traditional lenders.

Buy here pay here (BHPH) dealers don’t usually check their borrowers’ credit reports during the approval process. While a BHPH used car lot has some disadvantages – like assigning higher than average interest rates, requiring a down payment, and maybe not reporting your loan to the credit bureaus – it’s an auto financing option that many bad credit borrowers look to.

And of course, you have the option to buy an inexpensive vehicle with cash. Cash is king, and if you have the money on hand to buy from a private seller, there’s typically no credit check involved in a private car sale.

7. Give Yourself Time to Heal

Time heals credit scores. While a repo can hurt your credit score now, a negative mark’s impact on your credit score lessens after each passing year.

After a year has passed following a vehicle repossession, you can look into subprime lenders that are signed up with special finance dealerships. Subprime auto lenders report their loans to the credit bureaus, and work with credit-challenged borrowers. With timely payments on a subprime car loan, you can rebuild your credit for future credit chances.

While you’re letting your credit reports heal, focus on repairing your credit in other areas, too.

Finding a Dealership Near You

Locating a dealer that can work with your credit can be a hassle, but we want to make it easier. Here at Auto Credit Express, we have a network of dealerships all over the country that assist bad credit borrowers.

To get matched to a dealer near you, fill out our free auto loan request form. There’s never an obligation to buy anything, and we’ll get to work for you right away.

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Warner Robins GA Credit Repair Finance Score Improvement Service Launched

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New credit repair services have been launched by the expert team at Fresh Start Consumer Services. They work with clients in Warner Robins, GA and the surrounding areas.

New credit repair services have been launched by the expert team at Fresh Start Consumer Services. They work with clients in Warner Robins, GA and the surrounding areas.

Fresh Start Consumer Services has launched a new credit repair service for clients looking to improve their financial future. Interested parties can sign up for credit consultations, in-depth credit analysis, credit recommendations and more.

Full details can be found at: https://freshstartconsumerservices.com/index.html

The newly launched services are designed to ensure clients can repair bad financial credit history, track their improvement campaign in measurable ways, and secure a better future for themselves and their family.

Clients can work with Fresh Start Consumer Services to clean up their past. This is achieved by working with the major credit bureaus and creditors to challenge the negative report items that affect the credit score.

Based in Warner Robins, GA, the expert team at Fresh Start Consumer Services is passionate about helping citizens to improve their credit score to give them more buying power. As a result of this, clients are able to secure more options in life.

The team understands that sometimes bad things happen to good people, and their services are designed to ensure that clients can get the most out of life. They also realize that a bad credit score can harm clients’ quality of life – and can be a difficult situation to get out of.

Fresh Start Consumer Services offer courses in credit repair and restoration, budget management, credit education and purchase assistance. Clients get easy access to their account 24/7 for live status updates on improvements, allowing them to fine-tune the management of their credit score.

Service options include personalized dispute options to fit each clients’ exact credit repair needs, an experienced case analyst and case advisor working personally with them throughout the process, custom dispute letters, and more.

For clients, there are a number of reasons to work with a credit repair specialist. Clients are able to secure significant savings on interest rates, attain better terms on loan products, and get access to the best credit card deals. They also gain access to more housing options.

The team states: “Fresh Start Consumer Services offers a unique combination of services that gives our clients the quality of life they deserve. We specialize in helping our clients achieve qualifying credit and the financial health they desire.”

Full details can be found on the URL above.

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Is it Possible to Trade In a Car Early?

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Yes, early trade-ins are possible when you finance a vehicle. In fact, there’s no set time frame on trading in a car. Most dealers won’t take a trade-in that’s too fresh, though, and it’s best to wait until there’s equity in your vehicle before you try to trade it in.

What’s a Trade-In?

When you trade in a car, you’re essentially selling it to a dealership and financing something else from their lot, without the hassle of selling and buying with separate transactions. There are no hard-and-fast rules about how and where you have to trade in your vehicle.

However, it’s beneficial to shop around and see which dealers can give you the best price, but you shouldn’t just head to a car lot and ask what they’re willing to offer you. When the time comes, there are several steps you may want to take to get ready for the trade-in process, especially if you’re looking to trade in early before you’ve had the chance to close the equity gap.

Trading In Early and Equity

Are Early Trade-Ins Possible When You Finance a Car?When you’re trading in a vehicle soon after you’ve financed it, you’re more likely to be in a negative equity position – owing more on your auto loan than the car is worth.

This is especially true if you financed a new vehicle, or a certified pre-owned car. Newer vehicles depreciate faster than used ones, which have typically already seen their biggest drop in value.

Depreciation is the loss of value over time and it can’t be stopped. It can be slowed, though. The best way to do this is by using a large down payment when you finance. This reduces the amount you have to borrow, and leaves you owing a price closer to what the car might cost after you drive it off the lot. New vehicles typically lose around 10% of their value as soon as they touch the road.

If you don’t have the equity to recoup your investment in a car, you have to make up that difference out of your own pocket. It’s much easier to trade in a vehicle that can pay for itself, but this isn’t always possible when you’re trying to do so early.

Preparing Your Early Trade-In

When you know that you’re starting with a deficit on your trade-in, it’s a good idea to be prepared to get the most you can. Clean the car thoroughly, both inside and out, and make sure to fix any minor damage that may have occurred in the short time since you took out your loan.

Getting the vehicle detailed and fixing major mechanical issues isn’t likely to result in a worthwhile increase to the cash in your pocket, so don’t go overboard. Remember, you want to make as much money on this trade as you can, and it’s probably cheaper for the dealership to fix any large issues.

Before you set foot in a dealer to get your trade-in appraised, it’s a good idea to know approximately how much your car is worth. You can find this out by going to online valuation sites such as Kelley Blue Book or NADAguides. Be sure to be honest when you’re inputting information, since it’s the only way to get an accurate estimate of possible value.

Shopping for Trade-In Values

Once you have the estimates (which you should print or save to your phone), it’s time to take your trade-in to get looked at. Taking it to a few different dealerships is a good way to find the best deal you can.

We recommend taking your early trade-in to at least three different dealers, making sure at least one of them is a franchised dealership that sells your vehicle’s brand. A franchised dealer that sells your car’s brand may be more likely to offer a higher price.

Depending on your credit situation, it’s likely a good idea to ensure you’re trying to trade in your vehicle to a dealership that can work with your situation, especially if you have poor credit. And that’s where Auto Credit Express can come in handy.

We have a nationwide network of special finance dealers that are signed up with subprime lenders who can help people in many different types of credit situations, including bad credit, no credit, and even bankruptcy.

The process is easy to get started – just fill out our free auto loan request form. We’ll match you to a local dealership that can get you started on the financing you need after your early trade-in.

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Jackson receives financial reporting award

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JACKSON, Mich. (WILX) – The City of Jackson is getting international recognition for its transparency in financial reporting.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to Jackson for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2019.

The CAFR was judged by an impartial panel to meet the high standards of the program. Standards include demonstrating a constructive “spirit of full disclosure” to clearly communicate the financial story of the City and encourage users and groups to read the CAFR. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting.

“This is great for the City as a whole because it improves our bond rating,” said City Manager Jonathan Greene. “We believe this award will help our residents understand the work we do to make the City’s finances transparent and easy to understand.”

Bond Ratings are letter grades assigned to bonds that indicates good or bad credit for an entity like the City of Jackson. By having a strong bond rating cities are granted opportunities to pay back interest at lower rates.

The CAFR can be viewed HERE.

Copyright 2020 WILX. All rights reserved.

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