If you’re struggling to keep up with your car payments, the fear of repossession can be overwhelming. You might be wondering if hiding your car is a viable option to prevent the lender from taking it. Specifically, in Vermont, is hiding a repo car a crime? Understanding the legal implications is crucial to navigating this stressful situation.
In Vermont, as in many other states, auto lenders have the right to repossess your vehicle if you default on your loan. Default typically occurs when you fail to make payments on time, as outlined in your loan agreement. Vermont law allows for “self-help repossession,” meaning your lender can legally take your car without first obtaining a court order. They aren’t even required to give you advance notice before they seize the vehicle. This can happen as soon as you are in default, and they are permitted to come onto your property to take the car, as long as they don’t “breach the peace.”
So, back to the main question: Is hiding your car to prevent repossession a crime in Vermont? While it might not be classified as a specific crime like auto theft in every scenario, actively hiding your car from the repo company in Vermont can lead to serious legal and financial repercussions. It’s not a straightforward “yes” or “no” answer, but it leans heavily towards being a very bad idea with potentially criminal consequences depending on the specifics.
Here’s why hiding your car can be problematic and potentially illegal in Vermont:
- Breach of Contract and Potential Civil Liability: Your auto loan agreement is a legally binding contract. By hiding the car, you are actively preventing the lender from exercising their contractual right to repossession upon default. This is a breach of your contract and can open you up to civil lawsuits from the lender to recover the vehicle or the outstanding debt.
- Obstruction of Justice or Contempt of Court: If the lender has already obtained a court order demanding you surrender the vehicle (though not always required for initial repossession in Vermont), hiding the car could be seen as obstruction of justice or contempt of court. This can carry criminal penalties, including fines or even jail time.
- “Breaching the Peace” Considerations: While lenders must not “breach the peace” during repossession, your actions to hide the car could be interpreted as provoking a breach of peace or escalating the situation. For example, aggressively confronting the repo agent or using physical force to prevent them from taking the vehicle could lead to criminal charges against you.
- Worsening Your Financial Situation: Hiding the car doesn’t make your debt disappear. Instead, it typically makes your financial situation worse. The lender will likely incur additional expenses trying to locate the vehicle, and these costs can be added to your deficiency balance – the amount you still owe after the car is eventually repossessed and sold.
Consequences of Hiding Your Repo Car in Vermont:
Choosing to hide your car to avoid repossession can lead to a cascade of negative consequences:
- Increased Debt: As mentioned, the costs associated with locating a hidden vehicle will likely be passed on to you, increasing the total amount you owe.
- Deficiency Judgment: After repossession (even if delayed by hiding the car), the lender will sell the vehicle. If the sale price doesn’t cover your outstanding loan balance, you’ll be responsible for the “deficiency.” Hiding the car won’t eliminate this deficiency, and it might even increase it.
- Damage to Credit Score: Repossession already severely damages your credit score, making it harder and more expensive to borrow money in the future. Actions taken to hide the car won’t improve this situation and could further negatively impact your credit.
- Legal Fees and Court Costs: If the lender pursues legal action to recover the vehicle or the deficiency, you could be responsible for their legal fees and court costs in addition to your own.
- Stress and Anxiety: The stress of hiding a car and constantly worrying about repossession is significant and can negatively impact your well-being.
What to Do Instead of Hiding Your Car in Vermont:
Instead of resorting to hiding your car, which carries legal and financial risks, consider these proactive and constructive steps:
- Communicate with Your Lender Immediately: The moment you anticipate trouble making payments, contact your lender. Many lenders are willing to work with borrowers to find solutions, such as temporary payment deferrals, revised payment schedules, or refinancing options.
- Explore Payment Options: Discuss all available options with your lender. They might be able to offer a repayment plan, allow you to skip a payment (with added interest later), or restructure your loan.
- Consider Voluntary Repossession: While it’s not ideal, voluntary repossession is generally less damaging than a forced repossession. It can also reduce some of the fees associated with repossession. Even with voluntary repossession, you are still responsible for the deficiency balance.
- Seek Credit Counseling: Non-profit credit counseling agencies can provide valuable guidance and support in managing your debt and creating a budget. They can also negotiate with lenders on your behalf in some cases.
- Understand Your Rights: Familiarize yourself with Vermont’s repossession laws. Knowing your rights can help you navigate the process if repossession becomes unavoidable. Contact the Vermont Attorney General’s office or a legal aid organization for information.
In Conclusion:
While the specific act of hiding a repo car might not always be explicitly defined as a felony in Vermont, it is certainly not a wise or legally sound strategy. It can lead to a range of negative consequences, from civil lawsuits and increased debt to potential criminal charges in certain situations. Instead of hiding your car, prioritize communication with your lender, explore available options, and seek professional help to address your financial challenges. Being proactive and informed is always a better approach than attempting to hide from the problem.
