Steps to Get a Repossessed Car Back | Can You Get Car Back?

Are you facing the car repossession issue and thinking about how to get a repossessed car back? You have come to the right place. You can get your car back after repossession, and there are some legal methods for that. In this guide, I have discussed the methods to get a repossessed car back, what your rights are, and what steps you can take to protect your credit and money.

Table of contents

• An Overview of Car Repossession
• How to Get a Repossessed Car Back – Know Your Legal Rights First
• Initial Steps to Take After Your Car Is Repossessed
• Options to Get a Repossessed Car Back
• Costs Involved in Reclaiming a Repossessed Car
• When You Can’t or Shouldn’t Get a Repossessed Car Back
• Illegal Car Repossessions: When to Take Legal Action
• How to Prevent Repossession of a Car in the First Place
• Conclusion
• FAQs

An Overview of Car Repossession

The car repossession happens when the lender takes back your car when you are not able to make timely payments. During the installment period, the car is used as collateral, and the lender has the legal right to take back the car if you miss payments. The repossession badly affects your credit score and can stay there for up to 7 years.

That is why the first thing is to stop repossession using the best car repossession loopholes. If your car has been repossessed, read this guide and follow the steps to get a repossessed car back.

How to Get a Repossessed Car Back – Know Your Legal Rights First

Before taking any steps to get a repossessed car back, you must be aware of the legal rules. The following points highlight the important rules and regulations in different scenarios.

Do Lenders Need to Give a Warning?

According to the rules in many states, the lender does not have to give a warning before repossessing a car. If there are some initial notice rules on the contract or your state has warning rules, the lender should give a warning before repossessing the car. Therefore, always carefully read the terms of the contract and rules in your state.

What Are Your Rights to Personal Belongings?

The lender or repo agent can take the car, but not your personal items inside it. Everything inside your car is your property, like a laptop, clothes, or tools. No lender can take them, and many states allow the borrower to take all their personal stuff before car repossession.

What If Your Property Is Damaged?

If the lender or car repossession agent damages your personal items during the process, they are responsible for it. You can take photos of the damage and talk to the repo company. If you find that some of your items are damaged, you can file a complaint or get legal help to cover the damage.

How “Breach of Peace” Affects Repossession Legality

Breach of peace during repossession means the lender should complete the process without threats, force, and destruction. If a repo agent causes a scene or enters a closed space without permission, it may be illegal. In that case, you can take legal action and stop the repossession of your car immediately.

Initial Steps to Take After Your Car Is Repossessed

You must focus on the following three steps before following any method to get a repossessed car back. These three steps will help you know about the situation and figure out the right direction.

1. Contact Your Lender Immediately: If your car gets repossessed, the first step is to contact the lender. Reach them in a respectful way and ask why the car was taken and what you can do to get it back.
2. Request a Repossession Notice and Cost Breakdown: Ask the lender to send you a formal notice that explains everything regarding car repossession. This notice should include things like the total amount you owe, repossession fees, and how you can get the car back.
3. Confirm the Reason for the Repossession: Finally, confirm the actual reason for the repossession and find out if you can get your car back after repossession. For example, check whether you missed the payments and did not update your insurance. So, if the lender makes an error, you can quickly get the car back without taking further steps.

Options to Get a Repossessed Car Back

After completing the initial three steps, now you are ready to try any of the following options to get a repossessed car back. You can get your repossessed car back by choosing the right option depending on your situation:

Reinstate the Loan by Paying Overdue Amounts

The loan reinstatement is one of the best methods to get a repossessed vehicle back. It lets you catch up on missed payments instead of paying the whole loan. Remember that in this option you will also pay the fees for late payment and towing service. After completing the steps and paying the fees, you can continue paying the monthly installments.

Buy the Car Back at Auction

If the lender takes your car to auction, you can attempt to buy it back at a good price. You will have to confirm the auction place and time and be ready to pay in full. However, the success of this approach to get back a repossessed car depends on luck. This is because there are many other bidders too who can win the bid and get the car.

Paying the Full Loan to Get a Repossessed Car Back

Another common approach to get your repossessed vehicle back is paying the full loan amount along with repossession fees. After paying the loan amount and associated charges, the car completely becomes yours, and the lender cannot take it again. If you can afford to pay that much, this is the fastest way to get back the repossessed car.

Dispute an Illegal or Wrongful Repossession

If you spot that the lender has broken some rules and there are some illegal things involved, you can sue the lender. Go to the legal authorities and show proof like payment receipts or insurance papers. With the technique, you can get your car back after repossession without paying or even getting money for damages.

Negotiating with the lender can help you get your repossessed car back

If you feel that the lender is caring, reputable, and friendly, you can try negotiating to get your car back. You can set the new payment terms and make plans for missed payments. Moreover, you can also decide what will happen to the debt when a car is repossessed. There is a high chance that you will convince the lender and get your beautiful vehicle back.

Costs Involved in Reclaiming a Repossessed Car

Other than choosing the right method to reclaim the repossessed car, you must be aware of the costs involved. Below, I have highlighted the average costs involved in the process of getting back a repossessed car:

Repossession Fees and Storage Charges

When your car is repossessed and you want to take it back, you have to pay the towing and storage fees. The towing fees range from $200 to $400, and the storage charges range from $20 to $100 per day. If a car sits in a lot for a week or more, those charges alone can hit several hundred dollars.

Legal & Administrative Fees

Some lenders may also charge fees for legal actions and paperwork. The legal and administrative fees range from a few hundred dollars up to $500–$1,000, depending on the complexity of the collection action. The common costs involved in the process include legal fees, court costs, notice fees, and administrative expenses.

Total Loan Payoff or Reinstatement Costs

To get a repossessed car back, you either pay the full loan or just the missed payments as a first step. Reinstating the loan is usually cheaper but still includes extra charges. So, look at all the costs involved and the procedure while choosing any option to get a repossessed car back.

When You Can’t or Shouldn’t Get a Repossessed Car Back

You can get your car back after repossession, but there are scenarios when you can’t or shouldn’t do this. Here are some scenarios:

Weighing the Costs vs. Benefits

Analyze the costs and benefits to know whether getting back the repossessed car is a good decision or not. For example, if the fees are too high or your car is old, it might not be worth it.

Alternatives Like Public Transport or Buying a Used Car

If you are unable to pay the pending installments or pay the full remaining amount, getting the repossessed car back can be a financial burden. In that case, it is better to move on to public transport, carpooling, or buying a cheap used car.

Illegal Car Repossessions: When to Take Legal Action

If the lender has repossessed your car illegally, you can take legal action to stop the repossession. Here are some things to consider if the repossession seems illegal:

Signs Your Car Was Taken Unlawfully

Was your car locked in your garage when it was taken? Did the repo agent threaten you? These could be signs of an illegal repossession. If you have faced such a situation, do not wait and instantly take legal action against the lender.

What to Do if You Suspect a Wrongful Repossession

If you suspect a wrongful repossession of your vehicle, the first step is to gather all documents, such as payment records and messages with the lender. First, contact the lender to handle the situation between both of you. If things don’t work well, hire a lawyer and take legal action.

When to Contact a Consumer Rights Lawyer

If the lender did not return the car after your initial contact, you can contact a lawyer to get a repossessed car back. If you win the case, the lender will return the car and have to pay your legal fees and damages. This step will also help you fix your credit after a car repossession.

How to Prevent Repossession of a Car in the First Place

Do you know you will not have to hassle to get the car back if you stop it in the first place? Some techniques to stop the repossession are listed below:

1. If you are struggling to make payments on time, you can negotiate with your lender. They can help you with the situation and may offer a grace period, a temporary break, or new terms to make it easier for you.
2. Try to modify your loan term according to your current financial situation. For example, you can request to extend the loan terms, lower the monthly payments, or skip the payment for 1 or 2 months.
3. Another option to stop the repossession in the first step is refinancing or selling the vehicle. You can either take a new loan to pay off your current loan or sell the vehicle and pay the remaining loan.

Conclusion

Choosing the right method to get a repossessed car back can make things easy and hassle-free. Always be aware of the charges associated with each method and your legal rights. Moreover, before taking any action, negotiate with the lender and try to solve things without involving legal parties. In short, you can get a repossessed car back, but choosing the right way makes a big difference.