If your car has already been repossessed, here’s what you need to do to move forward and improve your credit.
- Contact your lender. First, call your car loan lender right away.
- Review your finances.
- Create a plan.
- Understand your rights.
- Find out if you owe money.
- Work on your credit.
How many payments do you have to miss before your car is repossessed?
In general, you can expect car repossession to occur if you miss three or more payments in a row on your auto loan. One missed payment can result in repossession, but it’s less common. A “missed payment” is considered a payment that is more than 30 days late.
Do you still owe after a repossession?
If your car or other property is repossessed, you might still owe the lender money on the contract. If your car or other property is repossessed, you might still owe the lender money on the contract. The amount you owe is called the “deficiency” or “deficiency balance.”
How much are repossession fees?
Also, to get back the personal property that was in your vehicle at the time of repossession you will likely have to pay a “removal processing” fee (about $50) plus a daily storage fee (about $10 per day, plus potentially more for “excessive quantities” or hazardous materials.
Photo in the article by “Wikimedia Commons”