What To Do If Your Car Is Repossessed

Pick-up Truck, Tow Truck, Accidents and Disasters, Roadside Assistance, Insurance.
Pick-up Truck, Tow Truck, Accidents and Disasters, Roadside Assistance, Insurance.

When you signed the financing agreement that enabled you to buy a car on payments, you made a legally binding promise to make those payments on time every month. If you miss a single payment by 30 days — or certainly three payments over 90 days — your lender can send someone to physically come and take that car back. That’s repossession. It’s one of the worst feelings in the world, but if it happens to you, you have to act fast — or even better, prevent it in the first place. Beware of the hidden costs of taking out an auto loan.

Last updated: Dec. 9, 2020

A tow truck towing a silver suv.
A tow truck towing a silver suv.

Know the Law

The process of repossession is intrusive and frustrating and can be intimidating. The laws are murky and vary from state to state, but a court order is almost never needed for a lender to issue a repossession order, and they don’t have to notify you beforehand. In most cases, repo agents can come onto your property but can’t enter a secure structure, meaning they can take a car from a driveway but not from a closed garage. They’re never allowed to breach the peace or make threats. If you’re worried that the repo man is in your future, learn the law in your state.

A woman looking out a window.
A woman looking out a window.

Don’t Fight

Just as repossessions can be intrusive, frustrating and intimidating, they can also be infuriating. Watching a stranger come onto your property and hook your car up to a tow truck might compel you to scream, yell or run out of your house and confront the person. Don’t. Just as repo agents are not allowed to breach the peace or make threats, neither are you.

woman talking with police officer
woman talking with police officer

Call the Police If You’re Uncomfortable

If you believe the repo agents have overstepped their bounds, intruded on your property inappropriately, broken the law or are simply in the wrong, call the police. The police are not in the business of helping repo agents secure vehicles, but they will keep the peace and inform both parties of their rights.

man garage door
man garage door

Don’t Hide Your Car

If you catch wind that you’ve been marked for repossession, you might be tempted to lock your car in your garage or otherwise hide it — this is almost always a bad idea. First of all, it’s usually illegal to intentionally hide your car to dodge rightful repossession. Second, your lender can obtain a court order called replevin to find and seize your car where it’s hidden. Third, the harder you make things, the more the repo company will charge the lender — and the lender and the law will hold you accountable for those costs.

Rucksack and bag left on a car backseat.
Rucksack and bag left on a car backseat.

Ask How To Reclaim Your Stuff Inside

The repo agent has the right to take your car, but the personal items inside are yours. In some cases, you’ll receive an inventory of personal items with instructions on how to retrieve them. In other cases, the repo man might let you collect your belongings right there. Keep in mind that personal items don’t include aftermarket add-ons like new stereo systems.