If you know your vehicle is at risk of being repossessed due to late payments, you may be tempted to try and park it somewhere safe to wait out the repo crew. However, this isn't a good idea and may even be illegal. If you know you’re in trouble, it’s okay. Stuff happens, and you have options. Start by contacting the financier (usually the dealer or a bank) and being upfront about your situation. Taking your car and selling it is a lot of work for them, and they’ll meet you in the middle if you’re open and honest about what you can afford. We'll walk you through all of your options, below.
Things You Should Know
- Avoid trying to hide your car if it's going to be repossessed. It’s best to try and work with the financier to work out a payment plan.
- Selling the car is unlikely to be a viable solution since there’s likely a lien on the title and you need the financier’s permission to sell it.
- If you can’t afford the payment but want to keep a car, consider taking out a personal loan to cover the difference.
Steps
Expert Q&A
Tips
Warnings
- Most states have a law on the books that makes self-help repossession legal. This means that as soon as you default on the car loan, the financier can repossess your car without warning or a court order. [11] X Research sourceThanks
- Filing for bankruptcy can help stop repossession temporarily, but avoid filing for bankruptcy unless that’s actually a viable and productive option for you. Talk to a bankruptcy lawyer if you think this might be a potential option. [12] X Research sourceThanks
Expert Interview
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References
- ↑ https://consumer.ftc.gov/articles/vehicle-repossession
- ↑ https://consumer.ftc.gov/articles/vehicle-repossession
- ↑ https://www.nerdwallet.com/article/finance/late-car-payment-avoid-repossession
- ↑ https://www.forbes.com/advisor/personal-loans/best-personal-loans/
- ↑ https://www.mass.gov/info-details/what-to-know-if-your-car-is-repossessed
- ↑ https://www.lawhelp.org/files/B1196C12-D35A-072C-1CE6-1152819EF2BE/attachments/2A23FB82-9AE8-4511-B9BD-57CD4308BD6D/carrepo-ppt.pdf
- ↑ https://upsolve.org/learn/how-does-repo-man-find-your-car/
- ↑ https://www.justice.gov/archives/jm/criminal-resource-manual-1364-altering-or-removing-motor-vehicle-identification-numbers
- ↑ https://www.lawhelp.org/files/B1196C12-D35A-072C-1CE6-1152819EF2BE/attachments/2A23FB82-9AE8-4511-B9BD-57CD4308BD6D/carrepo-ppt.pdf