What happens if my car used for collateral gets towed

87 viewsOther

i used a car i had as collateral but i stopped pay the insurance or tags but still pay my loan off on time the company never said anything about me no longer having insurance on it but my apartment is towing it because its not non opt will there be a problem even if i just continue to pay my loan on time??

In: Other

3 Answers

Anonymous 0 Comments

Are you planning on just leaving it at the tow yard until they eventually sell it and use the proceeds to pay your tow and storage bill?

Anonymous 0 Comments

You just have to get your car back from the tow company. The longer you leave the vehicle in thier yard the more they’ll charge you for storing the vehicle. They didn’t repossess the vehicle from you. Your loan is fine. Although if you leave your vehicle in thier lot they can go through a process to claim it.

But you should go get it from the junker lot and go update your tags. Talk to your apartment people, they usually have some sort of contract or insurance situation that makes them check tags and tow any out of date. Usually they don’t specifically care that your tags are out of date, just that it’s something else they have to check off and do. Usually, they will work with you about not towing your car again as long as you have a plan. Talk to them and arrange a plan.

But don’t leave your car in the tow lot. Go get it and update your insurance and your tags

Anonymous 0 Comments

>i stopped pay the insurance

Depending on the nature of your loan/lease/note; your lender may bill you for CPI (collateral protection insurance; or ‘force-placed insurance’). And they may have the contractual right to *retroactively* charge you for said insurance, which will be absurdly higher than what you would have been paying for private insurance.