Options to Consider for Evading Car Repossession


In case you are a defaulter with respect to your car loan, the car lender might go for repossession of your vehicle, following which he will pursue you for the deficiency. If you wish to evade a deficiency or repossession, here are certain options to retain your car, go for resolution of your debt or save yourself from a deficiency judgment.

Adjustments for Late Payments

Simple because a payment is late does not imply that you are a defaulter. Certain agreements might state that you are a defaulter in case you are late in the payment by one day. Certain other agreements might imply that you are not a defaulter until and unless you are late by a month or more. Even if there is a delay, you might not be a defaulter till the creditor certifies the same. So as per such loan documents, if you have not yet defaulted, you might be capable of heading off repossession through the loan current. For this, it is important that you go through the loan agreement meticulously.

Reinstatement of the Loan

You might consider reinstatement of the loan even if you are a defaulter. By doing this, you would be able to do away with repossession or retrieve your car if it has been repossessed. Through reinstatement, the loan current can be brought when all past payments are made up, and this includes late charges or applicable fees, in one single large amount. This is also known as the right for default cure.

Redemption of the Car

Following repossession of the car, it can be redeemed. This implies that if you are reimbursing the complete outstanding balance due against the car loan, you would be able to get back the car. The payoff or redemption amount often incorporates the attorney fees, storage costs, repo fees, along with the outstanding interest and principal. There is very less time for redemption of the car. Once the car is sold, the right to redeem ceases to exist.

Negotiation with the Creditor

A certain time, the creditor can be approached and negotiation can be done in an alternative method for getting back the car or eliminating or reducing the debt. You might consider option like selling the vehicle yourself; surrendering the vehicle or force the creditor to give back your car in case he has violated your rights in certain ways.

Refinancing of the Car Loan

The creditor might opt for refinancing the loan, especially for a longer period of time. Alternatively, you might be able to come across a different lender who would provide extension of credit for refinancing the loan. It might indeed seem a tempting option, particularly in case the fresh installment payments are less compared to the original payments, but considering the long term benefits, it might not be a great deal.


Certain people might consider filing a bankruptcy owing to the overall financial condition. This can result in a temporary hold on repossessions, deficiency judgment lawsuits, collection actions against deficiency, as well as wage garnishments or bank attachments against deficiency judgments.

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