How to get a repossessed car back
Quick insights
- You may still be able to get your car back after repossession, but it requires swift action and a clear understanding of your rights.
- The sooner you act after your car has been repossessed, the higher your chances could be of getting it back.
- The amount you'll need to pay to get your car back after repossession can depend on several factors, including your lender's policies and the remaining balance on your loan.
Repossession can feel like your life took a wrong turn, but it's not the end of the road; in fact, it could just be a detour. Let's shift gears and navigate this road together.
Can I get my car back after repossession?
The short answer is yes; you can get your car back after repossession. It's important to understand that even after your car has been repossessed, you still have rights, including the right to reclaim your vehicle. Here are the main options you have:
- Reinstate the loan: Some states and certain loan agreements allow for loan reinstatement. This means you can get your car back by making up for the missed payments, along with any late fees, towing and storage costs. Once you've caught up on these payments, you can continue with the original loan contract as if the repossession never happened.
- Redeem the vehicle: Another option is to pay off the entire loan balance, including any fees associated with the repossession. This is known as redeeming the vehicle. Keep in mind that this option can be quite costly, as you'll need to come up with the full amount owed on the loan, not just the past due amount.
- Buy the car at auction: After repossession, lenders often sell vehicles at public auctions. If you can manage it, you might have the option to buy your car back at one of these auctions. Be aware, however, that you'll be competing with other buyers, and you'll need to have the funds available to pay for the vehicle in full at the auction.
- Negotiate with the lender: In some cases, you might be able to negotiate with the lender to develop a plan to get your car back. This could involve creating a new payment plan that you can afford, or possibly even refinancing the loan. This option largely depends on the lender's policies and your financial situation.
Remember, the best option for you will depend on your financial circumstances and the regulations in your state. It's always a good idea to consult with a financial advisor or attorney to understand the best course of action for your specific situation.
How soon can I get my repossessed car back?
When your car is repossessed, time is of the essence. The sooner you act, the better your chances of getting your vehicle back could be. Here is some important information to keep in mind:
- Act quickly: The sooner you act after your car has been repossessed, the better. In some states, lenders can sell repossessed cars as soon as 24 hours after repossession.
- Contact your lender: Reach out to your lender to discuss your options for getting your car back. They may be willing to work out a repayment plan with you.
- Understand your state laws: Repossession laws vary by state. Some states require lenders to notify borrowers before selling a repossessed car, giving you some time to act.
- Consult with a legal professional: If you're unsure about your rights or the repossession process, it may be beneficial to consult with a legal professional. They can provide advice tailored to your specific situation.
How much will I pay after a repossession?
To get your car back, you'll typically need to pay the remaining balance on your loan, plus any fees associated with the repossession. This can include storage fees, legal fees and costs associated with selling the car. If your car is sold for less than the remaining balance on your loan, you could be responsible for the difference, known as a deficiency.
Preventing repossession
The financial decisions you make today can help you avoid financial difficulties like repossession tomorrow. Here are some tips to keep in mind:
- Stay in contact with your lender: If you're struggling to make your payments, don't avoid your lender. They may be able to work with you to modify your loan terms or set up a payment plan.
- Consider refinancing: If your current loan terms are unmanageable, you might want to consider refinancing your loan to potentially secure a lower interest rate or longer repayment term.
- Budget and prioritize payments: Make sure you're budgeting effectively and prioritizing your car loan payments to avoid falling behind. If you need help, Chase offers free tools to help you create a budget, manage your debts and make a plan for financial stability.
- Build an emergency fund: Having a financial safety net can help you manage unexpected expenses or income loss without missing your car payments.
The bottom line
Getting your car back after repossession is possible, but it requires quick action and a clear understanding of your rights and options. Costs can vary, so it's important to communicate with your lender and understand all potential fees. Ultimately, the best defense against repossession is prevention, so try to stay proactive in managing your auto loan payments and maintaining open communication with your lender.
