By admin Cars are one of the most essential purchases of your adult life in most parts of the U.S., but they’re also one of the most expensive. They’re not getting cheaper, either.
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The average monthly payment for a new car is $770, and the average monthly payment for a used car is $531, according to LendingTree. Compared to a year ago, this is a 2.9% and 1.5% jump, respectively.
A car loan may seem manageable at first, but an unexpected bill or life event can prevent you from making one or two of your monthly payments. Nationwide, 1.99% of consumers with recently active auto loans have a default on record.
So what happens if you don’t pay your bill in South Carolina? Here’s everything you should know:
What happens if you can’t pay your car loan in SC
Like all other states, SC allows lenders to repossess a person’s vehicle if they fall behind on car loan payments or violate the loan agreement, according to SC Legal Services.
This can happen without a court order, but state law still gives certain protections and rights. Missing a payment or breaking another term of your car loan, such as failing to maintain insurance, puts you in default. If a payment is more than 10 days late, the lender can hold you in default.
If you are in default, the lender must send a , giving you 20 days to get out of default by paying all unpaid sums, plus any unpaid delinquency charges. A lender only has to send this notice once, so if you reinstate the loan and get behind again, the lender does not have to send another one.
South Carolina allows “self-help” repossession. This means the lender can take your car without going to court as long as they do not breach the peace. However, there are strict rules that repo agents can’t break.
What repo agents can and can’t do
So your car loan hasn’t been paid in more than 30 days, you’re in default, and your car is lying on a public street? Expect your car to be gone very soon.
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Repo agents can legally take your car if it’s in a public place or on an open driveway. They’re allowed to use a tow truck or drive the car away themselves.
What repo agents can’t do is enter your closed garage without your permission, threaten you or use physical force, damage your property or create a disturbance.
If the repossession causes a “breach of the peace,” you may be able to recover damages in court, SC Legal Services said.
What can you do after your car gets repossessed
Car repossession is an emotionally and financially taxing event that should be avoided at all costs. But if you can’t avoid it, you still have one more chance to get your car back.
After the lender has the car, it must send you a written “Notice of Sale” with the time and place of any auction or private sale. They must send this at least 10 days before the sale.
Regardless of whether it’s a public or private sale, you are entitled to buy back the vehicle by paying the full loan amount, plus the repossession costs, before the sale. This is known as redemption.
If obtaining your vehicle is not possible, you still have the right to retrieve your belongings that may have been left in the car.
Make sure to document everything that occurs during this event, from when and where your vehicle was taken, and whether there was any damage or conflict. If you believe the repossession was illegal or unfair, get a South Carolina attorney.
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