How many installments are overdue before the car is seized?

For those who are experiencing financial problems and are unable to pay their car installments on time, causing them to be 3-4 months behind on their car installments, when this situation occurs, some people may wonder if they can pay the installments 1 month early or what they should do to avoid the risk of having their car seized. We have some management methods for overdue car installments to recommend in this article.

How long can I overdue my car installments? When will my car be seized?

For those who have to pay their car installments every month but have a liquidity problem and have to overdue their car installments, generally, they can be overdue for up to 90 days or about 3 months, equivalent to 3 installments. After that, the finance company will start the debt collection process seriously in the 4th month. However, if they still cannot pay their car installments in the 4th month, the finance company can seize the car.

Therefore, if the car owner assesses the situation and believes that they will not be able to pay their car installments in that month, they should contact the finance company as soon as possible to find a solution together, whether it is overdue for 3-4 installments but can they pay 1 installment first? Or are there other ways to make installment payments before the situation escalates to the point of having the car repossessed?

I have missed 3-4 installments, but can I pay 1 installment first?

For those who have missed 3 or 4 installments and are wondering if they can pay 1 installment first, if they have enough cash flow, in this situation, there are 2 possible cases:

If there is no letter of termination, you can pay only 1 month's installment first, or all 3 installments without having to contact the finance company. The car will not be repossessed, but there will be a payment for collection, loss of benefits, and other expenses as specified in the hire-purchase contract.

If there is a letter of termination that clearly states that all outstanding car installments must be paid within 30 days from the date the contract is received, this means that you cannot pay only one month's installment first. The car owner can still contact the finance company to negotiate and ask for an exception. The finance company will consider whether to allow payment for only 1 month without repossessing the car, which must be approved on a case-by-case basis.

A happy father and son Because I am not in arrears with my car installments

I am late with my car installment payments and I don’t want my car to be repossessed. What should I do?

Contact the finance company

The first thing you should do when you realize that you definitely won’t be able to make the car installment payments is to contact the finance company immediately. Don’t let the problem escalate. Contacting the company to let them know in advance will give you a better chance of negotiating for help.

Negotiate and adjust the installment payment plan
Most finance companies are willing to help car owners who are experiencing a lack of liquidity. They may ask for a payment extension or restructure the debt, such as extending the installment period or reducing the amount to be paid in each installment. However, the car owner must contact the finance company to negotiate with them themselves.

Summarize the debt

Understand the total debt, including interest and fines. Having a clear overview will help you plan your debt repayment more effectively and may increase your chances of successfully negotiating with the finance company.

Manage your finances, increase your liquidity

The key to reducing the risk of running out of money and not being able to make the car installment payments is to re-manage your own finances, which may include making a strict income-expense budget in order to effectively control your expenses.

Reduce expenses

Another way to help create liquidity is to reduce your daily expenses. Start by cutting unnecessary expenses, such as eating out regularly, subscribing to unnecessary services, or reducing utility bills. Every baht saved from cutting unnecessary expenses can be used to pay off your car installments.

Find extra income

The last method is to find extra income, whether it's working part-time, freelancing, or selling things online. Even if it's just a small income, you can save up enough to pay off your car installments. For those who are worried that if you miss 3 months of car installments, your car will be repossessed, you can try these methods. But for those who can't find the money to pay off your car installments and are no longer interested in selling, Autovilla buys cars with finance at a good price. You can bring your car in for an appraisal at 3 branches.

For more information, contact:

Srinakarin Branch Tel. 097-921-9552

Romklao Branch Tel. 095-906-0633

Lam Luk Ka Branch Tel. 092-940-5098

References

How many months of late payments will your car be repossessed? Retrieved on June 31, 2024 from https://www.sanook.com/auto/82700/