A man stressing out after his car was taken by the primary lienholder.

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

Have you missed your most recent payment on a title loan? Are you worried your lender will repossess your vehicle because of a lack of payment? Falling behind on a title loan is not ideal, and there’s always a chance your car will be repossessed and sold at auction to cover the remaining loan balance. However, it helps to know your rights and take action to avoid repossession. Even if fall behind on the payments, you still have time to work with your lender and fix the situation!


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. It costs a lot of money to hire a repossession agent, store your vehicle at a tow yard, and get it ready to sell at auction. Also, throughout this entire time, your lender is not receiving your monthly payments! Therefore, if you can work with them, many lenders will respond positively because they would rather you get back on track than force their hand and initiate a repossession. Simply 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.


A man stressing out after his car was taken by the primary lienholder.


Title Loan Repossession Laws

The repossession laws for car title loans vary from state to state. In some states, your lender has to wait two weeks before they can even consider taking your vehicle, and they always need to send you a notification that your car has been repossessed. Other states require them to wait a month or more before they can start the repossession procedures. This means that after accounting for the state regulations, it’s entirely up to your lender to handle your situation.

Check your loan documents to review what happens if you miss payments and default. All lenders need to explicitly outline your rights, and the contract should specify how much time you have to avoid a vehicle repossession.


What Happens After A Title Loan Company Repossessed My Vehicle

After 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? While this often depends on state law, which can force lenders to follow a strict process before selling a vehicle, most lenders follow a general process.

Part of the shock of repossession is when the lender takes possession of the vehicle. 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, an auto equity lender may allow you to make payments and get back on track with the payments 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. Most companies prefer you to keep making the payments versus selling the vehicle at an auction, as that can be quite costly, so there’s a good chance they’ll negotiate with you.

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. 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.


Let Premier Title Loans Help With Your Repossession

Premier Title Loans has options for anyone facing an imminent vehicle repossession because of missed payments on their title loan. We can see if you qualify for a loan refinance, or perhaps there’s a chance your lender will agree to a buyout with new monthly terms and interest rates. Others may be eligible for a truck title loan or other secured loans where you can use that cash to get your vehicle back and avoid a repossession! Call us at 800-250-6279 to learn more!