Once the lenders decide that they need their vehicles back, here is how they do it. Keep in mind that many dealers install GPS tracking devices on their vehicles. But the newer devices can do more than just find the vehicle in mind.
They can turn off the vehicle remotely or disable it. Since they do not want to do that when the vehicle is in the garage or on private fenced area, they wait till the vehicle is in an area that can be reached to tow away! They often send a spotter to see if the vehicle is in a good location for towing before they disable it with a click of a button! If a co-signer was used but the owner wants to keep it hidden, the co-signer might want to return it to clear his credit name. This conflict of interest often causes the co-signer to act like the spotter to have the vehicle returned back safely!
The device attached may also allow the dealers to track customers for several days every half hour if they need to know where the customers really work or live to see if they lied on the application.
While some dealers allow 10 days grace period, with or without late fees, others make you sign that they can take the vehicle if the payment is even 1 day late. This is why it is so important to read the papers that you are signing and not be afraid to ask questions.
The dealers usually send a repossession company to pick it up for them. While some customers have the car cleaned out with keys ready to give to the repossession guy, other might jump over the hood and threaten to kill the repossession guy. So these repossession guys have to be ready for anything, yet be polite and firm in their line of work.
When they tow the vehicle, they have to judge what kind of towing technique would be best with the least harm to the vehicle. The “All Wheel Drive” vehicles might need more work towing when compared to front or rear drive vehicles. Having only two wheels with power means that the vehicle would be easier to tow by picking up two wheels and letting the other two wheels roll along. This might not be a problem if the keys were found and the vehicle can be set on neutral.
How to prevent your car from being towed?
First, do not try to finance a vehicle that is far beyond what you feel comfortable with paying back.
During the duration of the loan, try not to have other big investments in your life so you focus on the car payments.
If you absolutely have to pay late, keep an open communication with the lenders so they know that you still intend on paying back and explain your current financial situation. Most of the time they will give you some additional time to pay back the loan.
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