What fees and costs should I expect when retrieving a repossessed car?

Can You Get Your Car Back After Repo?

If you’ve fallen behind on your car payments and your lender has initiated repossession proceedings, you may be wondering if you can still get your car back. The good news is that you do have a chance to get your car back even after it has been repossessed, but it depends on a few factors.

How Repossession Works

When you finance a car, the lender has a lien on the vehicle, which means that they have the legal right to repossess it if you fall behind on your payments. If you haven’t made your payment for a certain amount of time – typically 90 days – the lender can send a repossession agent to take your car.

Once your car has been repossessed, the lender will typically sell it at auction to recoup some of their losses. If the sale price of the car doesn’t cover the amount you owe on the loan, you’ll still be on the hook for the difference – this is called a deficiency balance.

How to Get Your Car Back After Repo

If your car has been repossessed, you may be able to get it back by paying off the outstanding balance on your loan. This includes any missed payments, late fees, and the cost of repossession. Once you pay this balance, the lender will release your car back to you.

However, if you can’t afford to pay off the entire balance, you may still be able to negotiate with the lender. Some lenders will allow you to reinstate your loan by making up the missed payments and paying a reinstatement fee. This will allow you to keep your car and continue making payments.

Can You Get Your Car Back After It’s Been Sold?

If your car has already been sold at auction, it may be more difficult to get it back. However, if the sale price of the car was higher than the amount you owed on the loan, you may be entitled to a surplus check for the difference. You can use this money to buy a new car or pay off other debts.

If the sale price of the car was not enough to cover the amount you owed, you’ll still be responsible for the deficiency balance. This can be a significant amount of money, so it’s important to try to negotiate with the lender to come up with a repayment plan or settlement.

Conclusion

If your car has been repossessed, it’s not the end of the road. You may still be able to get your car back if you can pay off the outstanding balance on your loan or negotiate with the lender for a reinstatement or repayment plan. However, if your car has already been sold at auction, you may need to explore other options, such as using a surplus check to buy a new car or working with the lender to settle the deficiency balance.