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No one wants to lose their new car. However, life happens—and whether you recently lost your job and fell behind on payments, or had a personal emergency, staying on top of bills can be difficult at the best of times. How do you get a car back after repossession? Provided you have the money, there are some steps you can take. Unfortunately, once the car has been repossessed, there isn’t much you can do to get it back—short of applying for bankruptcy—without paying the outstanding balance.
Repossessions are often done without warning. If you weren’t notified that the lender or leasing company was planning to repossess your vehicle, they’ll most likely return the car to you if you pay the outstanding balance and repossession fees. If you were made aware of the impending repossession via phone conversation or written notice, it may be more difficult. You’ll need to meet certain requirements before they’ll reinstate the loan.
Before you move forward, it’s a good idea to evaluate your finances and make sure you can afford to keep up with car payments and car costs. Calculate the monthly expenses to ensure reinstating the loan is the right move for you.
Generally, borrowers who fall into default on their auto loans and lose their vehicles don’t have the cash in the bank to purchase the vehicle outright. This is why lenders sell repossessed vehicles at auction—to earn money to put toward the associated loans. If you have the money, though, you can attend the auction. You’ll be notified about a month before the vehicle goes up for auction, giving you the opportunity to buy it back for the full asking price and repossession fees.
If you’re struggling with other debts and plan to file for bankruptcy, doing so can increase your chances of holding onto the car. Filing for bankruptcy involves the courts and makes it a legal requirement for the creditor to ask permission from a judge to repossess the vehicle. Keep in mind that filing for bankruptcy isn’t a fix-all solution; some downsides come with filing for bankruptcy, such as credit score damage. However, you’ll have the best chance of keeping your car if you file before the car is sold at auction.
Now that you know the answers to the question, “Can you get your car back after a repo?” you hopefully have a better idea of what to do. Contact us at Southern Chevrolet! We’re happy to serve customers from Chesapeake to Suffolk!
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