Getting your car back after a repo means redeeming your vehicle, reinstating your loan, or winning the bid at auction. The last move is the riskiest because there's no guarantee you can win the bid.
Getting Your Repo’d Vehicle Back?
To redeem your car you have to pay off everything you owe in one lump sum. This can be hard to do if your car has been repoed for missed payments, especially if you still owe a lot on the loan.
If it's an option outlined in your contract, or you live in a state that allows it you can also reinstate your loan. This means catching up on all back pay including charges and fees. Once your loan has been reinstated, you continue paying on it like normal, but you can't miss another payment or it's an automatic default and your car will be repossessed again.
If neither of these is an option for you, you can also bid on your car at auction. The lender is obligated to let you know where and when the auction is. Whether you win, or someone else does, if the vehicle doesn't sell for enough to cover what you owe, you must pay that deficiency balance out-of-pocket.
Avoiding Default In the Future
If you've defaulted on your auto loan and your car has already been repossessed, then it's important to know how to avoid this in the future, especially if you're hoping to get your vehicle back. Payments can't be late even by a day if you get your loan reinstated. So, knowing that talking to your lender before anything goes wrong is key.
Before you default, make sure that your lender knows there may be trouble before it happens. A lender may be more willing to offer you solutions, such as deferment, if you warn them of issues ahead of time. If you find that you're always cutting it close, it may be time to look into another solution like refinancing.
A vehicle can also be repossessed if your insurance coverage lapses. Lenders require full coverage car insurance during the course of your loan. Confirm that your auto insurance meets your lender’s requirements, or you could risk a repo or force-placed insurance.
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Time to Trade-In?
If refinancing doesn't work for you, trading in your vehicle for a more affordable car could be the solution you're seeking. Not sure where to start due to poor credit? Don't worry, we've got you covered at The Car Connection. We work with a nationwide network of special finance dealerships that are signed up with subprime lenders. Let us match you to a dealership by filling out our auto loan request form. It's fast, free, and never any obligation!