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More Americans are now at risk of getting their cars repossessed

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Posted at 10:03 PM, Apr 25, 2023

CORPUS CHRISTI, Texas — People who are finding it difficult to make their monthly payments on their car payments are risking having their vehicles repossessed.

Jeanie Flores, a local said her car got repossessed last week due to a late payment.

"I had to go through, I have to now find another way to find transportation for my job,” Flores said.

She tried contacting the bank where she financed her car, but once the car is repossessed the late fees start to add up making it difficult for the borrower to pay.

According to Cox Automotive, the rate of borrowers not being able to make their car payments increased by 18 % compared to last year.

Flores said that the bank told her that once the car is repossessed there is nothing they could do about it. The bank also told her that if that was the case she had to pay the complete amount right away.

For Flores, it was the first day that her car had been repossessed when she contacted the bank and her total owed was $1,755. The penalty for having the car in the lot increases every day.

It has been two weeks since and Flores now has a total amount due of over $3,000. She said that her only option was to gather her things from the vehicle because she can't offer it.

According to Cox Automotive, the average person is paying more than $700 a month for their car payments.

Experts recommend buying cars based on the price and not on the monthly payment.

Also, ask customers should ask the borrower for a grace period or loan restructuring.

When getting a loan customers must try to put the most money down.

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