If your car was recently repossessed, you may be wondering where it is, and if you can get it back. The answer to this can be complicated, and can depend on your situation, but typically repossessed vehicles are held in the recovery company's storage facility until it's turned over to the lender to prepare for auction.
There’s a lot that goes into an auto repossession, but we’re here to walk you through it.
Where Is My Car Now?
Typically the recovery company that towed your vehicle will take it to their business and hold it in an impound yard. The exact location of your car depends on who your lender hires to recover the vehicle.
After repossession, you're allowed to get any belongings that were left in your car at the time of the repossession, but you can’t simply locate your vehicle and take it back! To find your vehicle, you must contact your lender and ask where your car is being stored so that you can recover your personal belongings.
Additionally, you should know that you will also have to pay the recovery company a storage fee for the time between repossession and auction. The lender typically bills you for this after everything is said and done.
Getting your personal belongings is one thing, but if you'd like to get your car, you have a few options for getting behind the wheel again.
However, it won’t be free. And, whether or not you can even get your vehicle back also depends on the circumstances surrounding the repossession.
Can I Get My Vehicle Back?
There are a few things you can do to stop the repossession if it's about to happen or to get your car back after it's been towed.
- If your vehicle has already been repossessed – If your car has already been towed away, you typically have a few options to choose from.
- Opportunity to Cure –Your next step is figuring out exactly what led to the repo. Typically, missing one or more payments is a likely reason for repossession. Missing payments lead to defaulting on an auto loan. Depending on the language in your contract, you may not be able to get your car back unless all missed payments are made within a certain timeframe. This is called an opportunity to cure, and if you can catch up on missed payments by a certain date, you may be able to get your vehicle back.
- Buy it at Auction – After your car is repossessed, and before your lender sells it at auction, you receive a notice called a post-repossession notice which tells you where your vehicle will be sold. You have the right to bid on your car, and your lender has to notify you at least 10 days before the auction date. If you have enough cash, you may be able to win your vehicle back at auction and regain possession.
- If your car hasn't been repossessed yet – If your lender intends to repossess your car you may or may not get notice, depending on where you live. You may get a notice of the intention to recover your vehicle, or a letter stating you have to pay your loan balance in full. This is known as an acceleration notice, and it's your lender's way of telling you that the entire loan balance is now due to avoid repossession. Be aware that this isn’t an option in every state. It's also rare that a borrower can pay back the entire loan balance in one lump sum. But if you’ve received this notice it means you’re about to face a repossession and it’s past the time to get in contact with your lender.
Talk to Your Lender to Avoid Repossession
It may not always be an option, but the best way to avoid repossession is to talk to your lender before you miss a payment when things start to get tight. Your lender likely wants to avoid a repossession, too, since it’s a hassle and the amount they receive at auction usually doesn’t cover the loan balance.
If you’re about to miss a payment or have missed one, reach out to your lender and open a line of communication. Some lenders may be able to offer deferment programs if you’re facing a financially difficult situation.
A deferment simply pushes your payment(s) back a few months and tacks the skipped payments onto the end of your loan. You have to make up that car payment(s) eventually, but a deferment is designed to help you avoid missed payments and repossession. And, it allows you to keep your vehicle in hard times.
Getting Into Another Car Loan
Following a repossession, most auto lenders are wary to approve a borrower with one on their credit reports. However, if your repossession is over a year old, a subprime car loan could be your next step in getting another vehicle.
Subprime lenders work through a dealership’s special finance department, and they look at many aspects of your financial situation – not just your credit reports. we want to match you to a dealer with subprime lending options! Here at Auto Credit Express, we have a nationwide network of dealerships that help bad credit, post-repo, and even bankruptcy borrowers, find the lending resources they need. Get started now!
