How to avoid car repossessions in 2022
Updated on September 27 2023
METRO MANILA, – Do you want to take out a car loan, but you feel scared because of the horror stories from other people?
Are you afraid to experience any financial problems with the bank or, worse, car repossession? No worries!
We will share several useful tips to help you avoid getting your car repossessed.
Think about your financial capacity
The first step that you need to do before choosing a car, whether brand-new or used, is to consider if you can afford it.
Buying an automobile is a huge purchase. It requires a large amount of money to pay the downpayment and other fees. In addition, you need to settle the balance within a certain time. And of course, there are instances when your vehicle might need repair.
When taking out a car loan, make sure that it will not strain your monthly income. If it does, look for cheaper models instead of pushing through your first choice.
Look into the used market
Although brand new cars are amazing, it will not hurt to consider looking into used vehicles as well.
Used cars are much cheaper as compared to the newer models. This means you can also do financing, but have much lower downpayments and amortizations.
Review the contract
Yes, you finally have your own car!
However, purchasing your new travel buddy does not end with forking over the downpayment. You are still responsible for settling the outstanding balance.
Always take time to read your contract. Make sure you understand everything, especially the consequences of failed payments.
Pay on time
Unlike borrowing money from a friend or family member, an auto loan is a much bigger financial responsibility.
Failing to settle the payments on time can lead to disastrous consequences, which include car repossession.
To avoid this, always pay your monthly payments on or before the due date. You can either schedule the payment on your phone so that you won't forget or use an auto debit scheme from your bank account.
Automart.PH offers a wide selection of used cars at great prices, ranging from compact cars to pick-up trucks, that suit your needs. You can get them in straight cash or through our excellent financing services.
You can also get Automart.PH Certified Used Vehicles, which are restored until they feel like new again. They also come with a three-day money-back guarantee and, for Gold Certified units, a one-year warranty.
Automart.PH Senior Content Creator VJ Bacungan contributed to this story.