Mortgages and home equity loans are popular, but can you make a financial liability for a car? There are several companies on the market offering this type of service. However, before we decide to take a loan against the car, let’s consider whether it is really worth it. Do not take ill-considered steps. Read this article and find out what car loans mean.
We’re losing the car
You must know that a car loan is not a joke. There are customers who do not pay their debts on time, later they have to deal with financial problems, often loan installments with additional costs simply increase. Desperate customers take more payday loans to pay off previous installments and fall into a spiral of debts. We really don’t recommend this type of solution. Before you take out a loan or a loan, carefully analyze your financial situation so as not to worsen it in the future by irresponsibly incurring repayment obligations.
Returning to the merits, you can find customers who do not care about interest for late repayment of a financial liability. They pay off later, expose themselves to higher costs, but the vision of paying the borrower larger sums does not impress them at all. If we can afford additional fees for the loan, so in the case of a car loan, remember that with late repayment, the car we have pledged will simply cease to be our property. It’s impressive, right? I don’t think anyone wants to get rid of valuable things, just because of their own ill-considered actions.
Therefore, we encourage you to take advantage of alternative financial support, which may be non-bank online loans. Perhaps one of the offers below will be appropriate. We encourage you to familiarize yourself with the following list.
There are customer reviews on the Internet who say that despite the threat of losing a car, they still prefer to choose this form of lien against their home loan. The bill is simple, it’s easy to agree with it. However, on the side of the Loan-portal, we would like and wish our clients that they would never have to face such dilemmas and would always borrow consciously and responsibly. The loan is to help, make dreams come true, overcome temporary financial problems or simply help to achieve the intended goal. We do not hide that car loans are very risky, but for those who are very responsible it is somewhat another form of receiving money. How does it look in practice
Car loans – formalities
When we analyze the offers on the market and choose the one most appropriate for us, we fill out the registration application available online, after which we wait for contact from the lender. For now, the procedure is identical to borrowing via the Internet in most non-bank companies.
When we receive a positive loan decision, the company will present us with a contract according to which in the event of insolvency on the part of the borrower, the lender takes over the car. It is worth noting that the costs associated with insurance and other charges related to vehicle maintenance remain unchanged. The lender will also receive a power of attorney to sign up as a co-owner of the car.
We need to know that with the signing of this contract, the company that gives us the loan becomes the owner of the car in 51%. What’s more, if we don’t pay back the contractual loan amount, the company has the right to the rest of the car’s ownership. Thus, at this unpleasant moment, we lose our vehicle, we are no longer its owner.
It is also worth noting that some companies allow you to pawn a car that has more owners. In this situation, their presence will be necessary when signing the contract. They must agree to the creditor’s actions. However, placing a vehicle encumbered with credit or leasing is excluded. Lenders also avoid cars that have already been pledged, because in the event of problems with repayment obligations, the first creditor gets priority.
Is that all?
The formalities are not over yet. The borrower who has decided to take out a car loan is still waiting to visit the Communication Department in order to enter the loan company as a co-owner of the car. Of course, the co-owner must appear on the registration certificate, so the official of the Communication Department must fulfill the relevant obligations. Formalities must be completed within seven days from the date of the contract, i.e. one week after receipt of the loan. After fulfilling all of the above-mentioned conditions, do not forget to send the lender a scan or copy of the new registration certificate, as well as the VIN or glass picture with the registration number visible.
What if I don’t pay back on time?
As can be seen from the above formalities to be fulfilled, a car loan is a bit different from the characteristics of loans and payday loans via the Internet, which should be fast, easily accessible and convenient. When choosing this form of loans, we must meet a number of commitments described earlier, which, left without intervention, will simply prevent us from receiving money from the company. In addition, we would like to emphasize once again that in the event that we fail to pay back the loan on time, the company that has become a co-owner of the car, according to the law, can simply take over the car. You have to reckon with this fact when you decide to take a car loan.
If we decide to make such a loan, we should carefully pay the repayment dates and, above all, that the entire amount borrowed should be returned on time. After all, we worked on the car and let it help in the described situation, but let it also serve us!
When will the lender take over the car?
It is worth noting, however, that taking over the car by the lender does not take place overnight. If the security was a vehicle card, and thus often also an entry in the registration certificate, before the complete takeover of ownership, the company must go to court. To take over the pledged car, it is necessary to have an appropriate enforcement order, and its receipt is based on enforcement proceedings. Therefore, it will be necessary to obtain an enforcement order and an enforcement clause. This means that the lender must first receive a court order. Then he goes with him to the bailiff who seizes. In summary, the car will not be picked up immediately after the delay. First, you should expect contact attempts from the creditor. If they don’t work, then the whole process will begin.
Loans against movables are governed by the relevant provisions of the Civil Code, art. 306-324 (Journal of Laws 1964 No. 16 item 93). There we will find confirmation of the above information:
Art. 312. The pledgee is satisfied with the encumbered property according to the provisions on court enforcement proceedings.
Return of pledge
After paying the amount due to the lender, the car must be returned. If the pledge was made by entering the creditor in the registration certificate, a statement of release from security should be expected. Without this document, the deletion of the co-owner, who became the lender, will be impossible. We must go to the communications department again with the letter received. After presenting the declaration, the creditor will be crossed out and we will become the only full owner again.