Once you stop making payments on a vehicle, the clock starts to tick toward repossession. How many months do you have to ward off the REPO MAN?
QUESTION: How many months of delinquency do most creditors allow before they repossess equipment?
ANSWER: This is not an easy answer. If a lender feels that their collateral is in jeopardy then they can chose to repossess one day after the grace period has passed. As we have stated before, it is the obligor's responsibility to contact the lender when delinquent and make arrangements for repayment.
Failure to do so will almost always have the lender looking to repossess their equipment. Consequently honest and open communication and the ability to properly assess the situation and offer solutions will undoubtedly get you a reprieve with your lender.
Expert Don Coolbaugh, vice president of sales, Advantage Funding Inc.writes a weekly series of questions and answers for chauffeured transportation operators on all matters related to financing and leasing fleet vehicles. E-mail finance and leasing questions to: Martin@LCTmag.com