How to Deal with a Car Repossession
If you finance a car, it is by law the property of the financial institution until you have made all payments on the vehicle. If you default on payment, the institution has the right to repossess your car. If this happens to you, there are ways that you can deal with the repossession without developing more problems.
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Instructions
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Know your rights. Some states restrict the manner in which an institution can repossess your car and sell it off to eliminate your debt. Contact the Federal Trade Commission to find out the laws of vehicle repossession.
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Pay all fees to get the car back. If you wish to get the car back from the lender, contact them about arranging payment before they sell the car. Your costs could include any fees that the company paid to repossess the car, including towing and storage costs.
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Retrieve your personal property. If you left anything in the car, the lender can not sell those items. The institution must return the items to you or compensate you for any items that may be missing.
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Try to negotiate a deal. Many lenders don't want to go through the hassle of auctioning off a vehicle. Explain your financial situation to them and see if you can find a deal that will work for both of you.
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Find out what has happened to the car. If the car is being auctioned off, the creditor should let you know in order to give you a chance to bid on the vehicle.
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Hire a lawyer. You may need an attorney if your car has been repossessed. This is especially important if you feel that your car has been wrongfully repossessed.
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