Vehicle repossession occurs when a lender seizes a vehicle because the borrower has defaulted on their loan payments. It can have serious financial and personal consequences, including damage to your credit score, difficulty obtaining future loans, and loss of transportation. However, there are steps you can take to avoid vehicle repossession.
If you are at risk of defaulting on your loan, it is important to contact your lender as soon as possible. They may be able to work with you to modify your loan terms or create a payment plan that you can afford. You may also be able to sell the vehicle yourself and use the proceeds to pay off the loan.