When car payments go unpaid for a long period of time, lenders have a recourse for collecting: the repo man. In accordance with the laws in your state, the repo man can locate your vehicle and retrieve it for the lender. In turn, the lender can sell your car and recoup some of its money. In the end, a repossession may leave you with no car and bad credit. Additionally, you may be required to pay the difference between the sale price of the car and the amount you still owe on your loan. Fortunately, there are ways to stop the repo man.
Contact the lender. One of the best ways to stop the repo man is to call and request payment arrangements or loan reconfiguration. Your lender may be willing to work with you to avoid the expense of a repossession and help you get back on track.
Pay your overdue balance. Most lenders use repossession as a last resort. If you pay your past-due bill in full, your lender will likely call off the repo man.
Move your car to a friend's home. If you can park it in a friend's garage, you may be able to avoid the repossession for long enough to pay your past-due balance and get your account back in good standing.
Sell your car. If you can find a buyer for your car and get a good price for it, you may be able to pay off all or most of what you owe the lender. In many cases, the amount of money you'll get from a buyer you find will be more than the price the car would sell for in a lender's auction.
File for bankruptcy. Once you've filed, the court will put a temporary stay on collection efforts, and your car will be safe for a time. You may be able to renegotiate the payment of your debt through bankruptcy.
Seek a lawyer's help. Repossession laws differ from state to state, and a lawyer can fill you in on specific laws in your state. He may also help you to negotiate repayment and learn about other strategies for stopping the repo man.