Repossession

Repo. We’ve all heard the term, but do you know what happens if a repossession is issued for you? Customers often write us with concerns about being financed after repossession. For example, this is a comment we recently received:

If you have credit problems and you’re having trouble making your car payments, the very worst thing you can do is wait until after repossession to do something about it.

A repossession is one of the worst things that can appear on your credit report if you are hoping to finance another vehicle. Here's why it can happen and what you can do about it.

Your vehicle can be taken from you if you are late with payments in an act known as repossession. A repossession will cause your credit score to take a big hit, and it can remain on your credit reports for up to seven years. Let’s take a look at how auto repossession works.

Dealing with vehicle repossession is never easy, but taking certain actions can make it harder than it has to be. Here is what you should and should not do.

If your car is repossessed, you will probably find that you have a lot to deal with at once. But in the middle of all the chaos, you have to remember that you still have legal rights.

Repossession may put an end to a cosigner’s responsibility toward a loan. However, they have certain legal rights to which the lender must adhere.

If you're behind on your car payments, you need to take action. If you get far enough behind, the vehicle will eventually be repossessed. And, unfortunately, car repossession can be fairly devastating in a number of ways.

according to information from Experian Automotive, consumers financing a vehicle from a high-risk lender are roughly twice as likely to have that loan end in repossession versus buyers financing with a conventional vehicle loan.