Recovery companies are pretty skilled at their craft of locating and towing vehicles away, and they’re used to overcoming the lengths that people take to avoid them. If you do manage to successfully hide your vehicle from the repo man, that doesn’t mean you’ve beaten the lender, and that’s the end of it. In fact, there can be serious consequences of hiding your car from the repo man.
Here’s what can happen if the recovery company can’t repossess your vehicle.
Many people try to hide their vehicles from the repo man, but trying to hide your vehicle from the repossession company isn’t recommended.
Once the repossession process has begun, the repo man can take your vehicle from your driveway, your workplace, or even the parking lot while you’re out shopping.
Some borrowers may attempt to keep their car in a locked garage during the search. This is one of the only places where a recovery company can’t take your vehicle from – they can't open a locked garage or gate to get to your vehicle – this is considered a "breach of peace".
Other tactics that borrowers use may include taking off the license plate, parking down the road, and leaving your car at a friend’s house – the list goes on. Unfortunately, repo companies are familiar with these avoidance tactics.
But if you do manage to keep your car hidden from the repo company, the lender isn’t going to give up.
If the repo company can’t find your car, they contact the lender and let them know they are unsuccessful. Next, your lender is likely to take legal action. Your auto lender can take you to court and get an order that forces you to return the car. If you refuse to hand over the vehicle, you may be charged with theft, which is a whole other can of worms.
The longer the lender has to pay to keep the repo company searching, the more you may owe. And, if the lender takes you to court, expect more fees associated with the court hearings.
Typically, recovery companies attempt to find your car for up to 30 days.
In some cases, lenders can start the repossession process as soon as one day after a missed payment. You should also be aware that many lenders don’t give you notice of when or where they’re going to repo the vehicle. Depending on where you live, they may be required to, though. The best way to know what to expect if you're facing repossession is to research the laws in your state with a simple internet search.
The replevin process is different from the repossession process. In most states, your lender isn’t required to let you know when/where they’re going to collect your car via a recovery company. For a replevin, though, the lender must notify you if they pursue it, and you have the right to attend the hearing and dispute it.
However, if you’ve defaulted on your auto loan or broken the loan contract, the lender can likely win the case and get the order to take the vehicle. Especially if you've been purposefully hiding the vehicle from them.
In addition to taking the car, the lender can still charge you for hiring the recovery company and any storage fees that your vehicle incurs (since most repo’d vehicles are stored before they’re sold at auction). You’re still responsible for the remaining loan balance after the auction sale proceeds are put toward the balance, called the deficiency balance.
If you purposely hide your car to avoid repossession, and the repo man can’t get to it without using force, your creditor may ask for legal assistance.
What they can do is request one of two things: an order of replevin or a monetary judgment against you. Replevins are a type of lawsuit, according to legal experts at Nolo.com, where a creditor gets an order from the court requiring you to return the car. Monetary judgments are determined by how much you owe on the auto loan, plus any extra fees.
You’re entitled to a written notice of your creditor’s intent to obtain an order of replevin. You’re also given a chance for a hearing, with written notice of the location, date, and time of it, as well as the right to dispute.
The laws of states are different, and the time you’re given to respond to the complaint and request a hearing varies. Make sure you look up your state’s laws about replevin and ask a lawyer for further advice.
Replevin is a legal action taken against you, and shouldn’t be taken lightly. If you don’t comply and refuse to turn the car over to the repossession company, you could be faced with civil and/or criminal penalties.
If you’re worried about your vehicle being repossessed, you may be able to stop it from occurring by talking to your lender.
Let them know what’s going on, that you’re worried about missing a payment, and ask if they can help. Some lenders are willing to let you skip a payment and move it to the next month or the end of the loan term.
Another option your lender may suggest is to refinance the loan. When you refinance, you’re replacing your current loan with a new loan, hopefully with better rates and terms. The main goal of refinancing is to lower the monthly payment, and you can do this by either qualifying for a lower interest rate or extending the loan term.
However, to qualify for refinancing, you must have had the loan for at least a year, and your credit score must have improved since taking it out. In some cases, a lender may approve you for refinancing even if your credit score hasn’t improved much, although this isn’t always possible.
If refinancing could help you prevent a repo, make sure you rate shop and find the best deal. You could refinance with your current lender, but you should have at least one other offer to compare it to.
Even if your lender explains that they can’t help, they’re going to appreciate the fact that you reached out to them ahead of time. Just like you, lenders don’t want to go through the repossession process, either. Even if your car does end up getting repossessed, you’re on much better terms with them because you tried to prevent it.
Stopping a repossession usually means being proactive and upfront with your lender – not hiding your car and avoiding contact with them. In fact, avoiding your lender’s calls and notices can strain the relationship between you and them, making them less likely to help you out. It’s recommended you contact your lender at the first sign of financial instability, or as soon as you think you’re going to miss a car payment.
Some lenders offer deferment programs for borrowers who are going through hardships such as sudden job loss, medical emergencies, or other unexpected events that cause financial strife. A deferment pauses your car payments for a little while. Believe it or not, your lender probably wants to avoid the repossession process too. It’s a lengthy process that can cost you both time and energy.
Each lender’s deferment policy varies, so it’s important to read the fine print. For example, some lenders require that you continue to pay the interest during a deferment period, so you’re only skipping the principal payment. Keep in mind that deferred payments aren’t skipped and forgotten, either – they’re typically added to the back of the loan to be repaid later. A deferment option usually isn’t available if you’ve already missed a payment.
If you're already in the repossession process, there may be other avenues to explore to stop a repo. Typically, there are three options available to get out of a repo situation, only two of them leave you with your car, though.
The bottom line is that there are processes in place to assist borrowers in sticky situations with their auto loans. Hardships happen, and the more preemptive you are about resolving a possible repossession, the better your chances of getting a favorable outcome.
As long as you have a vehicle in repossession status, which you are not paying for, you can be liable for all the fees and costs associated with that repossession. This is especially true if they never recover the vehicle. This will be considered theft and could land you in a lot of trouble.
A recovery company will typically hunt for your vehicle for around 30 days. If they are unsuccessful in finding your vehicle, the next step is typically a lawsuit from your lender.
Yes, hiding your car from the repo man will ultimately impact your credit score. Once you're at repo status, you've typically defaulted on your auto loan, and that default can drop your credit score by around 100 points.
Hiding your vehicle just prolongs the process and costs you more money in the long run. It doesn't cost a lender to recover a vehicle you've stopped paying on – it costs you, since the lender will typically bill you for the hassle of having to repo your car. And, the longer your loan stays in default, the more your credit score may suffer.
Yes. A lender can file a lawsuit asking for a monetary judgment, or an act of replevin, which forces you to return the car or face the consequences, such as fines or jail time.
Senior Automotive Financing Editor
Meghan is expertly versed in automotive special financing and pricing analysis, having published hundreds of articles on Auto Credit Express and its sister sites, CarsDirect, and The Car Connection over the past decade. She began her career as a sports writer for the local newspaper in her hometown nearly 30 years ago, and has enjoyed writing ever since. Read more
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