Repossessed Cars

Chances are you rely on your vehicle to get you where you need to go — and when you need to go. But if you’re late with your car payments, if you don’t have adequate auto insurance, your vehicle could be taken away from you. Repossessed Cars usually are taken from the owner unaware but avoid this by making your payments.

When you finance or lease a vehicle, your creditor or lessor has important rights that end once you’ve paid off your loan or lease obligation.

Seizing a car

In most cases, your creditor can seize your vehicle as soon as you default on your loan or lease. Your contract should state what constitutes a default, but failure to make a payment on time is a common example.

Once you are in default, the laws in most cases permit the creditor to repossess your car at any time, without notice, and to come onto your property to do so. But when seizing the vehicle, your creditor may not commit a “breach of the peace.” In some cases, that means using physical force, threats of force, or even removing your car from a closed garage without your permission.

Selling the car

Once your vehicle has been repossessed, your creditor may decide to either keep it as compensation for your debt or resell it in a public or private sale. Your creditor must let you know what will happen to the car. If the vehicle will be sold privately, you may have a right to know the date of the sale.

Negotiating with your Creditor

It’s easier to try to prevent a vehicle repossession from taking place.  Contact your creditor as soon as you realize you will be late with a payment. Many creditors work with consumers they believe will be able to pay soon, even if slightly late. You may be able to negotiate a delay in your payment or a revised schedule of payments. If you can reach an agreement to change your original contract, get it in writing to avoid questions later.

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