Find out what happens after your car is taken by a lender

How Much Time Do I Have Before A Title Loan Company Can Repossess My Vehicle?


Are you worried that your car is going to be repossessed by a title loan company? Getting behind on your bills is uncomfortable, but getting behind when your car is on the line can be frightening. Knowing what to expect and what actions you can take to avoid repossession are a few of the only things that can offer you comfort. If you fall behind on a title loan, you have a few options, but time is always of the essence because once your car is repossessed, you have significantly fewer options.


Avoid Repossession After Taking Out A Title Loan

While some online title loan lenders want you to believe they can push you around, repossession hurts them almost as much as it hurts you. Therefore, if you can work with them, many lenders will respond positively because they would instead you get back on track than force their hand and initiate a repossession. You can best contact your lender and let them know if you face sudden financial difficulty.

It is uncomfortable to call a lender and tell them that you lost your job or are temporarily experiencing hardship, so most people dig their heads in the sand instead. However, maintaining contact and letting a lender know that while you may default this month, you can get back on track shortly could mean the difference between one missed payment and a repossession.


Avoid having a tow truck repo your car or truck!


Title Loan Repossession Laws

The repossession laws for car title loans vary from state to state. In some states, the lender can repossess your car once you default on the loan. Other states have stricter laws that give you more time to repay the loan before the lender can take your car. Besides the state restrictions, each online title loan lender has its policy regarding repossession. This means that after accounting for the state regulations, it’s entirely up to your lender on how they want to handle your situation. If you still have your original loan documents, the repossession guidelines are likely in the fine print and worth checking out if you are concerned. If you are behind on your payments and have made no effort to reach out to your lender, then it is possible that they could repossess your car in just 30 days, depending on the state you live in. This is another reason constant communication, even in times of difficulty, is so important.


How Much Time Do I Have Before A Vehicle Gets Repossessed

You should know that if you hold a brand new title loan and miss the first or second payments, they can act much quicker in some states based on bad faith laws. For example, if you take out a loan and then find that your phone numbers are disconnected, you don’t respond to their attempts to communicate with you. In this situation, the title loan company can take your car for repossession after 15 days. Again, your lender can move quickly on a repo, and because of that, you want to stay in contact with them and let them know the payment will be coming in soon!


What Happens After A Title Lender repossesses a Vehicle

Following a repossession, most people are shocked and want to know what happens to their vehicle. Will it be immediately sold or is it just sitting in a lot somewhere unused? While this often depends on the state law, which can force lenders to follow a strict process before selling a vehicle, there is a general process that most lenders will follow.

Part of the shock of repossession is the actual repossession. No one will knock on your door or tell you the time has officially come. Repossessions are not enjoyable for either party and usually happen quickly and stealthily. One day you may walk your door to work and your car is not there, or it may even be repossessed from the workplace parking lot, leaving you stranded.

Following the repossession, the lender may allow you to make payments and get up-to-date to get your vehicle back. Do your part and talk with the lender, see if there’s any way they will work with you to lower the amount owed and negotiate a new payoff contract. Once again, state law plays a role here, but it is usually in the lender’s best interest to accept your payments if you can settle your account versus finding a new buyer at an auction. Use a title loan calculator to develop different approaches and settlement amounts to see how the loan can be paid off more quickly. After the cooling-off period ends, the lender will auction your vehicle to recoup some losses.

a vehicle repossession can be costly and it will affect your credit score.