Repossessed Cars Frequently Asked Questions

Vehicle repossession is what occurs when a creditor, such as a loan company, employs a loan-recovery agent to repossess your car. If this occurs, don’t worry, all is not lost – however, time is of the essence. You must move fast if you want your car back.

Frequently Asked Questions:

Q: Does the loan company need to inform me in advance that they are repossessing my vehicle?
A: Not necessarily. In most situations, the answer is no, they do not need to inform you.

Q: Does the loan company need to inform me before my car is auctioned off?
A: Yes, the loan company must provide you some procedural documentation at least 15 days before your vehicle is put up for auction. The formal document is called the Notice of Intent to Sell Vehicle. It contains the following data:

1) That your repo vehicle or repo boats will be sold within 15 days of the document’s mailing date, or any other notice you have been provided.
2) The cost you will need to pay in order to regain your vehicle, and prevent its sale.
3) The procedural information – where the payment must be made, whom it must be directed to, where the car can be picked up, etc.
4) The document will also inform you of your right to an extension period, which effectively delays the vehicle’s sale for a period of ten days. In order to do this, you must fill out an attached request form and mail it to the return address in order to delay the vehicle’s sale.
5) Finally, if the amount the car is sold for does not meet the remaining balance that you actually owed on your car loan, then you
will be informed that the onus is upon you to repay the difference between the revenue generated by the sale, and the remaining balance on the loan.

Q: Under what circumstances can they actually refuse to return repo cars?
A: There are certain requisites that must be met before the company can posit an outright refusal to return the vehicle. They are:
1) If you withheld information (or lied) on the initial credit application to the loan company
2) If you attempted to avoid confiscation by hiding the vehicle
3) Damaged the car (or threatened to damage the car), or used it as a tool in perpetuating a crime
4) If this is not the first repossession within a 12-month period
5) If this is the third time the car is being repossessed since your original purchase