Repossessed Cars Meanings And What To Do When Your Car Is Repossessed

Do you know repossessed cars meanings in the Philippines? Have you ever stuck in this situation? If not, don’t brush off this article as it may be useful someday.

I. Introduction

Repossessed Cars - no one wants to be stuck in that case!

The bank allows people to mortgage their valuable assets such as cars, houses, factories, etc. so that they can borrow money and have business or work expenses depending on the vehicle owner.

In case the customer has not been able to repay the debt and interest on time. For a long time, the lender will take measures according to the signed contract between the parties to confiscate the property and sell and sell to recover loaned capital.

So what to do in this complex issue? This article by Philhyundai.com will show you some tips to get over!

II. Repossessed cars meaning

When conducting a bank loan, you will mortgage or pledge assets like cars to ensure the debt repayment. When overdue debts occur, the bank must find appropriate measures to handle and recover the debt. Repossessing cars is one of the most fluent ways applied by the authorities to avoid bad debts.

In case of default, the bank can run you up the following:

• Extrajudicial Foreclosure Under the Chattel Mortgage Law (Act No. 1508)

This rule is used for the case that you give the car back to the bank voluntarily.

• Judicial Foreclosure of the Chattel Mortgage

Under no circumstances should you be made to repossess the car by the court. 

Following the law released by The Phipipno government in 2000, your bank should take some steps before repossession:

• As of the date of the bank notice of the withdrawal, you have 21 days to do the necessary procedures. Within this period, nothing as violence or physical force happens. If something extraordinary occurs, you have the right to sue anyone, even the court. You can take proper actions if something in the repossessed car is taken away by anybody.
• After two weeks, another claim will be sent. It’s about how you can deal with the repossession: repayment- return your car- make allowance for the bank to take back the car. 
• If you have no reply after 3 weeks, the repossession keeps going, and your car takes in the sale public. 
• If you pay all your debts, it takes for granted to regain your vehicle. 
• If you still owe the bank even when your car is under repossession, your other assets will also be confiscated. 

III. What to do with Repossessed cars?

1. Find out why the car got repossessed

It is obvious in the case that you have no longer made payments on your loan; the bank has the right to be the owner of your car. Only when you have paid the full debt, the bank will authorize the car for you. 

However, if you have paid both interest and capital to the bank and still have your car withdrawn as a debt, then what you need to do immediately is to contact an authorized part of the bank to get answers.

In fact, there are many cases of confusion in car recall because of poor bank management. So if you see an abnormality, you can completely consult the bank to solve the problem satisfactorily.

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2. Recover your possessions stored inside the car.

If everything is clear and your car is recalled following the terms of the contract, condolences, you will have to remove soon what does not belong to the real property of the vehicle, such as personal belongings.

Rest assured, the bank will never take away CDs or items such as mirrors, combs, perfumes, so please contact the bank when and where the bank is authorized to recall the vehicle after having packed the stuff.

3. Ask if you can get your car back

Once the vehicle has been recalled, you should determine the likelihood of the vehicle being returned when the financial is full, and the allowable lawsuit is almost out of hand because the bank will liquidate your car as soon as someone asks to buy it. 

Therefore, before considering taking it back, the first thing you should do is take a glance at your finances. See if you can take out an extra loan to ransom your car, or if your current salary helps ensure your ability to pay both principal and interest. When proving that you qualify to meet either of the above conditions, you can ask your bank again to regain ownership of the car.

4. Possible ways you can get your car back.

These are some efficient ways you can refer to get your car inside your garage again!

• Buying a repossessed car

As we said, your vehicle, once recalled, will be auctioned off. If you have enough money to pay the bank, you are allowed to join the auction and become an owner again. Easy to understand, right? 

However, check your finances carefully because you also have to pay for other living costs even though you have enough money.

• Redeem the repossessed car

In other words, you should pay the remaining loan balance and repossession fees before the auction; then, you can take back your car without any hindrance. 

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Repossessed Car: Frequently Asked Questions

Repossessed Car: Frequently Asked Questions

If some curiosity rises in you for buying a repossessed car, don't turn a deaf ear on the information below. We've compiled the opinions of nearly 1000 readers, and here are the most common questions: 

1/ How to check a repossessed vehicle?

Take a mechanic to the bank warehouse to inspect a repossessed car. Even if access to the vehicle is restricted, it still does not hurt to have an expert to visually examine the car. Then, make sure to search the vehicle service history if there are any. It helps you to evaluate the general mechanical condition of the vehicle if you intend to buy it.

2/ Where are you going to buy a repossessed vehicle?

If you really want to buy, make sure you do the proper research in advance. Take a careful look at the market value of the vehicle of your choosing. In addition, make sure that you visit the bank's website for the repossessed vehicles as basic information is available.

3/ Are car finance alternatives open for repossessed cars?

Some banks may also provide financing options for repossessed vehicles. The benefit here is that it's called a full cash purchase and you're not going to end up paying interest on the side over time. A car loan is much better for your finances thanks to reasonable monthly installments.

4/ What are the disadvantages of buying a repossessed car?

The state of the vehicle will depend on driving habits and how well the previous owner took care of the car. The customer will bear the risks that the car might not be in a well-maintained situation, including any defects the vehicle comes along with. After your purchase, you can't run after the bank because the bank is no longer responsible for any losses or faults you find after you buy the car.

Final words

Repossessed cars meaning - hope that this definition will no longer make you puzzled. Risk often comes when we decide in a hurry or lack knowledge, so with these hints above, you will have enough cognition to shake off this matter!

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