There is never a good time for your car to be repossessed. Suddenly, you find yourself without the means for transportation, and maybe at a loss as to how you can correct the situation. If the repo man hooks your vehicle, what should happen next?

If You Have the Means to Act Quickly

After your car is repossessed, you will have a small window of time (before the lending bank sells the car) in which you may be able to reclaim the vehicle. You should get a notice regarding the selling of the car at least 10-15 days in advance (depending on your state's laws).

What to do if Your Car has Recently Been Repossessed

  • Redeem the car or reinstate the loan. If you can gather up the necessary funds, most states will allow you to "redeem" a repossessed car by paying the entire amount that is due on the loan. If you're unable to come up with this much cash at once, loan reinstatement may also be possible. This involves paying off any past due payments, including applicable fees and late charges in one lump sum.
  • Negotiate with the creditor. Immediately after repossession, you should contact your lender to see if they may be willing to work with you. Whether or not you will be shown any lenience is entirely up to the particular bank that you're dealing with, but you won't know unless you try.
  • Buy the car back at auction. The repossessing bank should tell you when and where your car will be auctioned off, and you have every right to attend that auction and bid on the vehicle.

If Your Car has Already Been Sold

If your car has already been sold, you will most likely find yourself in a tough financial situation. You won't have a car for your everyday needs, and you will still be responsible for paying off the auto loan to the lending bank. Will you be able to find a dealership that will work with you after repossession? What will happen to your credit?

  • Pay the balance as quickly as possible. Your credit rating will take a huge hit from the repossession, but the damage will be less significant if you're able to pay the bank back in a timely manner. And not owing money on a repossessed car will increase your chances of buying a new vehicle faster.
  • Try a Buy Here Pay Here lot. These dealerships don't check your credit when determining whether or not to finance a car purchase. As long as you can produce proof of a regular income, you should be able to purchase a vehicle from a buy here pay here dealer that will get you where you need to go on a daily basis.
  • If you can, give it time. Repossession doesn't have to be the end of the world. Eventually, with responsible money management, your credit will heal, and you will be eligible for financing again. Even if you end up having to buy a cheap car that you're not crazy about driving just to get you by for a while, remember that it won't be for forever.

Speeding up the Process

If you're currently trying to rebuild credit that has been damaged by repossession, Auto Credit Express can help. We're able to assist buyers who have less than perfect credit in getting the auto loans that they need to get reliable transportation, and on the way towards a brighter credit future. Just fill out our fast and secure application to start today.