How to Repossess a Car

The law allows you to repossess a car for late or missed payment on a car loan. There are few limits on how or when you can repossess a car, but you must obey the law.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• Auction Catalogs
• Legal Counsellors
• Telephone Book
• Telephones
• Auction Magazines

1. Review the loan contract with an attorney, and make sure it allows for repossession of the vehicle for non-payment.

2. Notify the buyer of your intent to repossess if state law requires that notification.

3. Hire a professional repossessor (they're listed in the phone book under "Repossessing Services") or send a responsible employee to repossess the car.

4. Understand that, in most states, you can repossess the car at any time of day or night and at any open location. You may not break into a garage or do anything else that breaks the law.

5. Understand that you may not repossess the car if it would cause a "breach of peace." For instance, you may not drag a person out of the car and drive away while he is holding on. You may not put anyone in danger.

6. Consider selling the car at auction after repossession, or re-negotiate with the buyer. Inform the buyer of all decisions.

Tips & Warnings

• It's a good idea to hire a professional repossessor. In most states, you can sue the buyer for the losses on the sale of the car including repossession costs.