If you default on your car loan, your vehicle may be at risk of repossession. When this happens, you may be able to avoid it or you can lessen the damage that comes from it.

According to NerdWallet, lenders hire repo agents to locate and repossess your vehicles.

Can you avoid the repossession?

If you know that the lender could take your vehicle, you can take a few steps. First, you can refinance your loan. Some lenders may offer you a lower interest rate. If you have poor credit, you can also sell the car. You still have to pay the lender but this might help you pay off the car and prevent credit damage.

Another option is to use equity. If you have equity in your car, you can sell it and buy a cheap car. Normally, if you put down a lot of money for a vehicle or have paid a loan for several years, you have equity.

Can you make the repossession easier?

If you cannot avoid repossession, there are ways that you can make the whole process easier. Do not hide the car. This can make the situation more difficult and you could face repossession fees. Instead, call your lender and find out how you can surrender the vehicle. When you surrender the car, make sure that the car has its original equipment. If you added anything, like a sound system, take it out. Hang onto all your valuables.

Repossessions can result in a lower credit score and it may remain on your score for seven years. You may want to do what you can to lessen the blow.