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How to Recover Your Repossessed Car in the USA

Repossession of  your car can make you feel helpless. But don’t worry, there are lots of ways to recover your repossessed car after the repossession stage. More than 6000 vehicles are seized daily in the U.S.

The Federal Reserve Bank of New York reports auto loan defect rate arrears is more than 40% of loans. This may happen to anyone; many people are subjected to car repossession, even well-established people also face this problem. So chill, and keep reading this blog to know more about how to recover your repossessed car in the USA and the solution.

What Leads to Car Repossession?

If you miss your car payment, your lender may repose your car from you. Typically, if you buy a car on loan, you must have signed a contract with your lender. According to the agreement, you have to pay a fee for the vehicle you purchase every month.

And the lender gets the right to repossess your car whenever you miss the payment. So, if you ever miss paying the car loan, quickly contact your lender.

A payment is counted as due if you don’t pay it within 30 days of the due dates. That means the lender can only repossess your car when the due dates over, and they can’t retake it after that.

Many lenders wait till a buyer’s 2-3 consecutive payments and then proceed to repossess. The lenders or bankers do not like to contact the borrower, and that’s why it is essential to talk to your lender after missing any payment.

Know the Steps or Actions Taken for a Repossessed Car?

Repossession law varies from state to state. In many states the lender knocks on your door after 30 days over due, but they have different rules for lenders in separate states. Like in Oklahoma, if you miss paying the rent the lender can retake the car at any moment. They don’t need to notify you in advance. The lenders are allowed to tow the car from your driveway or street.

Never try to be over-smart to the lenders. Suppose you have already suspected that your car will be repossessed, and you locked up the car immediately. I know it is tough to see the car taken away from you. But this trivial behavior may force them to take legal actions against you.

Repossessed vehicles are sold out in auctions to reimburse the loan balance. You will be notified when and where your car is about to sell.

Methods of recovering your repossessed car

There are some processes to recover your car in the U.S. state.

  1. Contact your lender

Whenever your vehicle is repossessed, you first should contact your lender. If you don’t know why your car has been repossessed, the lender may help you out to get your car back.

A phone call to the lender may help you solve your problem instantly. And in case your car has been towed due to missing payment, then adopting proactive access is a better course of action. The lenders always try to resolve the problems of their customers.

  • Payback the loan

The repossession process is slow enough to hold back your car. The lenders always stand for you to get you the car until they take you to any auction.

So, try to pay the total loan if you want to regain your favorite car. If you need to take a loan from family or friends, that would be best for you.

Or, if paying the whole balance is hard for you, still the lender will stand by to reinstate the debt. They can support you on adjusting the schedule of the amount.

They may set up a new payment plan for you to reach the missing payment and prepare a new future payment plan as well.

  • Pay a great debt

You can repurchase your car in the auction. When your car is listed for the auction, you can still owe your lender the amount. Suppose your lender cannot sell your car for a better amount, then you are responsible for the wage difference.

For instance, you owe $13,000 as a car loan, and your lender sells it at the market for $9000. There you only have to pay the extra $4000. In addition, you have to pay the charges of repossession expenses, missed payment, storage fees, and towing.

  • Regain your personal belongings from the repossessed car

If all your efforts to get back the car fail, do not forget your private properties left in the car. The lender must protect your personal belongings in the car.

You have only 30 days to recover your items from the car you left, as the car will soon produce in the auction.

You have the right to claim legal action if the lender accounts the whole car with your items. And if you customize them with radio equipment, rims, suspension, they are counted as part of it, and they can’t be recovered.

  • Make a plan

If the lender repossessed your car due to missing payments, then the lender has to notify credit bureaus first. And whether you owe a significant charge, your lender will lead you to the authority of the collection to pay the extra fees.

The collection and car repossession will remain up to 6-7 years in your credit report.

To get credit in the future, you must be proactive in developing your credit. For that, you must pay your bills on time.

  • Seek help

It is a good chance of evaluating your fares. Or if you made your mind to get a new car, please assess how you could afford the monthly maintenance, gas, and of course, the loan payments charges. Getting financial help will be great for you if you face difficulty paying your bills. is also another good source of information.

You can ask for help from local churches, Goodwill, United Way, etc.


Pay your loan debts on time to avoid car repossession. But if you ever missed making the payment within the due dates then without delay call your lenders. Only they can resolve the problem in a short time and being upfront and communicating with them will make the process so much easier.

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