Vehicle Repossessions: What to Know

A repo agent can show up at your home and take your car, all because you missed one car payment. Here at TrustDALE, the facts behind vehicle repossessions will be explained, and Dale will reveal his TrustDALE Tip that can stop a repossession before it happens.

Melinda writes to us: “Can you help me? My mom’s car was illegally repoed.”

While we weren’t able to get the details from Melinda in time for this article, we believe it’s important to still share the facts about vehicle repossession.

A lender can repossess your vehicle once you default on the loan or the lease. The lender could have someone repossess your vehicle without your knowledge. In many states, repo agents are generally allowed to go onto private property. However, they are not allowed to go into homes and garages. 

Usually, you can reclaim a repossessed vehicle after you pay the balance due on your loan alongside any fees. Otherwise, lenders can sell repossessed vehicles and hold borrowers responsible for the remaining loan amounts. 

Vehicle repossession laws vary by state, so if you’re not sure about your rights, talk to an attorney. Check your loan or lease contract as well. It will explain what constitutes a default. It can be as simple as missing one payment. 

Here’s a TrustDALE tip: Talk to your lender as soon as possible if you are having trouble repaying a loan. Many of them are willing to work with borrowers than go through the hassle of a repo. This advice goes for any kind of loan. It will save you a lot of trouble.