Theft Will Not Affect Your Credit Score
The first thing to note is that your credit score won’t be affected if you’re the victim of a theft. That said, you might still be on the hook for any missed payments as a result of the theft. Your lender should take steps to recover the car, but ultimately if it can’t be found, you may still need to make payments until the loan is paid off in full.
The good news is that most lenders will allow you to cancel your insurance policy after a vehicle has been stolen and declared a total loss by your insurer. This could provide some relief from additional costs while you try to figure out how to handle any remaining loan balance.
Contact Your Lender Straight Away
If your car gets stolen on finance, the best thing to do is contact your lender as soon as possible. They will be able to provide information about how you can manage the loan going forward, and possibly even offer assistance with a payment plan or alternative financing solution. Ultimately, it’s important to try to keep up with payments while working with your lender until the loan is paid off in full.
Nobody wants their car stolen, but if it does happen while you’re still making payments on a loan, understanding what steps to take can help minimise any additional stress and make sure you don’t have an unmanageable debt hanging over your head.
What Happens if I Stop Making Payments on My Car?
If you stop making payments on a car that is bought on finance, the lender may take legal action against you.
Car Loss: Depending on the terms of your agreement with them, they may repossess and sell or keep the car to recoup their money. In some cases, they might take you to court in order to recover any unpaid debt. You may also be subject to additional fees and penalties, as outlined in your financing agreement.
Affect Credit Score: Additionally, a negative mark will likely be put on your credit history which could make it difficult for you to get approved for future financial products or services. It’s important to remember that if your car is stolen while still under finance, you are ultimately responsible for paying off the loan even though the vehicle has been taken away from you. Therefore, it is always advised to get car theft insurance or gap insurance in order to be protected against these situations.
Ultimately, if your car gets stolen while under finance, you are still responsible for making the payments and should take appropriate measures to protect yourself against potential financial hardship. It’s important to evaluate your current situation and determine what steps you can take to minimise any potential loss.
This article should not be taken as legal advice; it is only meant to provide general information about what happens if your car gets stolen on finance. For specific questions about your individual situation, contact a qualified lawyer or licensed financial advisor for guidance.
What Can I Do to Protect Myself From Car Theft?
If you have a car on finance, it is important to take extra steps to ensure its safety. Here are some tips to help protect your vehicle from theft:
1. Always lock your car and make sure all windows are closed when leaving your vehicle unattended.
2. Park in well-lit areas and be mindful of who may be watching when parking or leaving the vehicle.
3. Invest in an advanced alarm system with motion sensors that will alert you if someone attempts to break into the car while it is parked.
4. Install an anti-theft device such as steering wheel locks, warning signs or immobilisers. These devices can act as a deterrent for potential thieves.
5. Make sure you never leave valuable items in plain sight inside the car. If possible, take any valuables with you when leaving the vehicle.
6. Always be aware of your surroundings while driving and look out for suspicious activity around your car. Report any suspicious behaviour to the police as soon as possible.
7. Make sure to keep a copy of your registration and insurance documents on hand for easy reference if needed.
8. Finally, always report any theft or attempted theft to the police immediately. This will help them investigate and hopefully recover your vehicle quickly.
By taking these extra steps, you can ensure that your car is protected from theft while on finance. Remember to stay vigilant and follow these tips to help reduce your risk of becoming a victim of auto theft.
