Vehicle repossession occurs when you default on your car loan payments or lack the required auto insurance, allowing the loan company to take back your vehicle. If your car has been repossessed, swift action is crucial to potentially recover it.
If you’re facing difficulties with your car payments, it’s important to explore options proactively. Firstly, reach out to your loan company to discuss and potentially negotiate a revised payment plan that better suits your current financial situation. Another avenue to consider is refinancing your auto loan with a different lender, potentially securing more favorable terms and lower monthly payments. Finally, selling your car privately can provide you with more funds than what you might receive if the loan company repossesses and auctions it.
It’s a common misconception that loan companies are legally obligated to notify you before repossessing your vehicle. However, in many jurisdictions, no prior notification is required. This means you might not receive a warning before your car is taken.
So, how do you find your repo car and what steps can you take to get it back?
First, verify the repossession. Before assuming your car has been stolen, contact your local police department. They can confirm whether your vehicle has been officially repossessed.
Next, immediately contact your finance company. To recover your vehicle, you will likely need to pay the outstanding back payments, and in some cases, the entire remaining loan balance. Be prepared to also cover repossession fees and storage costs. Additionally, you’ll need to provide proof of current auto insurance and a valid driver’s license.
After repossession, the company that took your car is required to inform you about the personal items left inside. Within 48 hours of the repossession, they must send you a list detailing the contents of your vehicle and instructions on how to retrieve them. Keep in mind that you will be responsible for storage fees to reclaim your personal belongings. You typically have 60 days to claim these items before they may be disposed of.
You should also expect to receive important legal notices. Within 60 days after the repossession, and at least 15 days before your car is scheduled to be sold at auction, the loan company must send you a Notice of Intent to Sell Vehicle. This document is critical and will contain key information, including:
- Confirmation that your car will be sold no sooner than 15 days from the date of the notice.
- The exact amount you need to pay to reinstate your loan and recover your car before the sale. The notice must explain why full balance payment is required if that is the case.
- Instructions on where to make payment and where to pick up your vehicle.
- Information about your right to request a 10-day extension to delay the sale, giving you more time to gather funds. The notice must include a form to request this extension. Use this option if you need more time to arrange payment!
- A clear statement that you will be held responsible for any remaining balance on the loan if the car sells for less than what you owe.
After the sale, you have the right to request information in writing from the loan company about the sale price of your car and the costs associated with the sale.
However, there are situations where the loan company might refuse to return your car, even if you offer to pay the outstanding balance. This can happen if:
- You provided false information on your credit application.
- You intentionally hid the car to prevent repossession or acted aggressively towards the repossession agent.
- You intentionally damaged the car, threatened to destroy it, or used it in the commission of a crime.
- Your car has been repossessed previously within the last 12 months for a second time.
- Your car has been repossessed for a third time since you originally purchased it.
Returning your vehicle voluntarily, known as voluntary repossession, might seem like a solution if you can no longer afford payments or don’t want the car. However, both voluntary and involuntary repossession have negative consequences. You will still be liable for outstanding costs and fees as outlined in your loan contract, and your credit score will be negatively impacted.
Following the vehicle sale, the finance company will send you an itemized bill detailing any remaining balance you owe after deducting the sale price of the vehicle, along with applicable fees and costs. You have up to one year from the date of sale to request this statement, and the finance company has 45 days to provide it to you.
In conclusion, finding your repo car and getting it back requires immediate and informed action. Contact the police to confirm repossession, then urgently communicate with your finance company to understand your options and the steps required for recovery. Understanding your rights and acting quickly are crucial in navigating vehicle repossession.
