You may have seen those commercials for car loans that promise “no credit? no problem!” But what happens when you can’t make your payments? Can the lender come and take your car away? The answer is, unfortunately, yes.
But what about tires? Can tires be repossessed if you don’t make your payments? Read on to find out!
Can Tires Be Repossessed?
Yes, just like your car, your tires and wheels can be repossessed if you don’t make your payments.
However, it’s important to note that not all lenders have the same policy on tire repossession. Some lenders may allow you to keep your tires if you default on your loan, while others may require that you turn over your tires as well.
Most lenders will not go through the effort to repossess your tires unless you are significantly delinquent on your payments, but it’s important to be aware that it is a possibility.
If you’re concerned about your tires being repossessed, you may want to consider paying off your loan in full or making extra payments to reduce the balance. You can also talk to your lender about their policy on tire repossession and whether there are any options for you to keep your tires if you default on your loan.
Why Tires are Repossessed
When purchasing expensive items, a popular way to pay for them is through financing. This means that you make payments to the lender over time, rather than paying for the item in full up front.
Tires and especially wheels are often financed this way because they can be expensive, and many people cannot afford to pay for them outright. This can be a great option if you’re looking to buy new tires or wheels, but it’s important to be aware of the consequences if you can’t make your payments.
If you default on your loan, the lender may choose to repossess your tires or wheels. This is because they are considered collateral for the loan, and the lender wants to recoup their losses. This is true for cars, and it’s also true for tires and wheels.
In most cases, lenders will not repossess your tires unless they are especially expensive tires. A lender will only go through the effort of hiring a debt collection agency if your debt is large enough to make it worth while, but the decision is ultimately up to the lender.
However it will almost certainly leave you with a negative mark on your credit report, which can impact your ability to get loans in the future.
Wheels are much more likely to be repossessed than tires because they are likely to be much more expensive and worthwhile for the lender to try and recoup their losses. Some wheels and rims can cost many thousands of dollars and it has been know for lenders to successfully repossess and sell these items.
What to do if your Tires are Repossessed
If your tires are repossessed, you will be responsible for paying off the remaining balance of your loan, as well as any fees associated with the repossession.
You may also be responsible for paying to have your car towed if the repossession company is unable to do so. In some cases, you may be able to get your tires back if you pay off the remaining balance of your loan, but this is not always an option.
If you’re worried about your tires being repossessed, the best thing to do is to make sure that you keep up with your payments.
When purchasing tires on finance, be sure to ask your lender about their policy on tire repossession. That way, you’ll know what to expect if you can’t make your payments.
So there you have it! Yes, tires can be repossessed if you don’t make your payments. Be sure to ask your lender about their policy on tire repossession so you know what to expect if you can’t make your payments.
So, if you’re thinking about financing your next set of tires or wheels, just be sure that you can afford the payments. Otherwise, you may find yourself driving on bare rims! And no one wants that.
We hope you enjoyed this article and found it informative. If you have any questions then please leave a comment below or get in touch via email or through social media and we will read and respond to every comment, email or question. Thanks for reading!
Do you have a story about having your tires repossessed? Share it with us in the comments!