CFI Blog

Auto Loans With Repossessions | 100% Working Strategy – Get Your Car Back

One of the worst experiences of life is having your car repossessed, and neither a lender nor the borrower wants to find themselves in that predicament. If you are about to face it or already do, you still have several options for overcoming this obstacle. 

The best way to avoid repossessing your car is to discuss it with your lender without wasting any time, try to understand your financial situation, set your budget towards them, and also follow the plan given by us so that without losing time you can find a solution to this problem. 

As time passes, your chances of getting your car back will decrease. You should also be aware of “how many car payments can you miss before repo” because this limit varies according to the loan agreement of each lender and some depend only on state law. 

The work of car loans with repossessions does not end here; in the following sections, we will also discuss the ways in which this procedure will affect your financial life.

What are the Car Loans With Repossessions?

Car Loans with Repossessions

The property seizure known as repossession, which typically occurs when a debt is not paid, can be done rapidly without notice. Although some lenders technically have the right to seize the asset immediately when a customer misses a payment, the majority of repossessions occur on account for borrowers who are overdue by at least ten days.

If a debt defaults, anything that serves as collateral for a loan or credit line could be taken away from the debtor. This could include the foreclosures of your house, your car, or any other asset you bought with credit, like electronics, furniture, boats, appliances, or motorcycles. 

How Do Auto Loans With Repossessions Work?

Repossession can be divided into two categories: Voluntary and Involuntary. When the lender permits debt collectors to confiscate the customer’s defaulted asset to make the loan secure, this is known as involuntary repossession. In contrast, in a voluntary repossession, the borrower surrenders the collateral in order to avoid paying more for an involuntary repossession. 

In both matters, the lender will attempt to recover the maximum of the outstanding balance by selling the repossessed car.  After that, you will be responsible for the remaining debt that the amount of the sale does not satisfy them. They will inform you of the selling details, and you are welcome to participate in the bidding process. 

How Many Car Payments Can You Missed Before Repossession?

If you miss even one car payment, you fall under the tag of arrears (a payment that is overdue). Then, the process of car loans with repossessions may be initiated in accordance with the state laws and the loan agreement to which you are bound. Even though a single missed payment may not lead to a repossession car loan, contacting the lender early to resolve the issue can assist you to avoid and stop the negative effects on your credit and finance. 

Charges for Late Fees-  If you miss one payment, you can take advantage of the grace period offered by your lenders which lasts for 10 to 15 days. If payment is not made in this limited time, then late fee charges start being levied.

Your Credit Score Drops: If you do not make the payment after 30 days from the due date, the lender will notify the credit agencies of your loan default, which can affect your repayment history and, consequently, your credit. This makes it difficult for you to borrow in the future. 

Collection for Your Account: Lenders start treating your account as a default on a loan when 90 days of non-payment have passed. While some lenders name your account as default 30 days before. If this occurs, the lender may attempt to collect your debt by sending your account to collections.

In Brief–

If you miss a payment for car loans with repossessions, your account may be deemed delinquent. Default is defined as missing payments for at least 30 days, although lenders have different deadlines for considering your account in default according to their rules & regulations. 

For instance, in order to prevent default, some lenders grant you 90 days, some provide longer than 90 days, while others provide less than 90 days. Your credit can suffer as a result of missed payments, making it harder to catch approval for future borrowings or any other financial circumstances.

3 Best Auto Loans After Repossession in 2024

Below, we have shared some vehicle lending networks that are simple to use. Most of their online quotations can be obtained within minutes. You can also receive the funds in just the next working day, enabling you to purchase a vehicle quickly.

1. Auto Credit Express

Auto Credit Express

Auto Credit Express is an online broker that helps people get car loans irrespective of whether they have a bad credit score or not.  You can apply for an auto loan even if you have bankruptcy or have faced processes like a repossession car loan. It provides a simple online form, in which you are asked about your monthly earnings, credit score, and your recurring debt each month.

It responds to your submitted form in a few seconds if you are eligible, before proceeding to the fourth step of the application process. In order to find the best financing options, the network begins its search for lenders and an auto dealership within your area. You are not required to select a lender from the lending network and the loan application procedure is completely free. 


  • Loans for a repossessed car, and bankruptcy
  • Flexible requirements to qualify for a loan 
  • Pre-qualification form only takes 30 seconds 
  • Lenders who allow co-signers and co-borrowers 
  • Great benefits for the military personnel 


  • Shopping options only at Auto Credit Express-member dealers.
  • A hard credit check may be imposed by some lenders.
  • You must have your SSN when applying.

2. Auto Loan

Utilizing can make it simple for you to locate a car dealership that offers to finance those who have a bad credit history. They have been helping people with car loans for bad credit for a long time. If you have fine, poor, thin, or no credit or if you have previously been denied for credit-related reasons, they can assist you by introducing you to a nearby dealership that can collaborate with you to select the great option based on your financial situation.

They have collaborated with the largest network of car dealers in the country who have completed their special finance training. Every day, they help a huge number of customers find the best dealerships within their area. You could also be a borrower to get auto loans after repo if you begin by completing their safe, no-cost online application. 


  • Application without cost or obligation
  • Ideal loan options for subprime, bankruptcy, first-time buyer 
  • Low-interest rates and fee-free application
  • Quick approval process after application submission 
  • Each day connects auto financing to thousands of buyers


  • Some lenders may ask for Social Security Number (SSN) 
  • Hard Inquiry may be applied 

3. was founded in 2003, it is a lending platform that asks for proposals from up to 4 ideal lenders in the name of applicants. It matches clients with numerous auto loan options such as lease buyout loans, new and used automobile purchase loans, Private dealers purchase loans and refinance loans. On the website of, you can see very good transparency, general guidelines for qualification, and extensive FAQs.

After submitting an online form to, the company connects applicants to lenders by applying a soft inquiry, which has no impact on credit scores. After this, the applicant gets four offers according to his eligibility, out of which he can apply by selecting the lender of his choice. A hard credit check may be performed by a lender when an applicant accepts the offer. 


  • Up to the best four lenders’ options.
  • Soft credit check.
  • Fast approval within a few minutes when applying.
  • Some lenders provide discounts on the rate.
  • Quick Funding.
  • Online publish rates.


  • In some states, it isn’t available.
  • Inadequate customer service
  • The required SSN for the initial application

The Most Effective Strategies for Avoiding Car Loans With Repossessions 

There is no need to worry if you have missed payment of your car loans with repossessions. Follow the given steps if you want to avoid auto loan repossessions and bring back everything as before. 

1. Check the Terms of Your Loan

If you are having trouble making your payments on time, you should check the terms of the loan because from there, you can find some hope. To know about late fees, grace periods, missed payments, defaulted loans, and your total balance, look through all of your loan paperwork. If you are unable to find the policy for late fees and when they are added to the balance, you should call the lender and inquire about the impact of late repayments on the terms of your loan. 

Think about whether you have ever missed a payment in the past. If this happens very rarely, you can proceed with the second step; However, if you constantly make late repayments or do not pay off at all then you may consider whether this loan is suitable for your financial system. If the loan is affecting your finances, you should talk to your lender about additional options to overcome this problem. 

2. Make a Budget Based on Your Loan Repayment

Make a Budget Based on Your Loan Repayment

With the assistance of budgeting, you will not only be able to deal with the car loans with repossessions overdue payments but also reach a settlement so that you can pay the loan off on time until the end. 

In making up for your missed payment, a budget that cuts out all unnecessary expenses is essential. After that, make adjustments to the next budget to make sure that the next repayment doesn’t get missed. Typically, financial planners recommend allocating 10 to 15 percent of your earnings to car loan payments. This range includes interest principal, fuel, and insurance for your car. 

3. Ask Your Lenders About Other Options 

If you continue to be unable to make your car loans after repossession payments, even if this is your first missed payment, then contact your lender with no delay. Don’t hesitate to talk about the whole scenario and ask about the options of extending the term of your loan like car loan refinancing for a longer period of time to lower the amount of your monthly payment. If the loan term is changed, you may be able to make payments that you can afford, however, you will suffer with a higher rate of interest and pay more overall interest. 

If you think you might miss your payment sometime but haven’t yet, this way might support you better. 

You might also be able to change the due date by asking the lender so that it coincides with the same date that you get paid. 

4. Other Options to Discuss With Your Lenders 

After you miss your car loans with repossessions payments, you should also discuss your lender about the following:

  • Make Plan for Due Date:  

If you miss a payment, you should have a payment plan that may support you to make things right again. This may be considered a settlement that benefits both you and your lender. If at all possible, this is the ideal time to adjust your payment dates so that it coincides with your payment date. You may be able to catch up on missed payments with this, but once the plan ends, you will have to pay the original monthly payments and possibly some of the missed payments.

  • Ask for a Loan Deferment: 

If the lender agrees to your request for a loan deferment, your monthly payments will go down or you can skip them for one to two months, which will help you manage your finances during this time. It might be easier for you to make future payments when this deferment stops working with a fixed deadline. You may be required to send the lender an effective hardship letter to explain why you need this option.

  • Trade-in Car for an Inexpensive Model: 

If you think you can not afford this car or your financial situation has changed drastically as a result of taking out a loan, you should think about trading in your vehicle for a cheaper one. Keep in mind that getting this trade-in option won’t be easy if the amount of your car loan is higher than its worth of it. 

  • Voluntary Surrender/ Repossession: 

As the name suggests, in voluntary surrender, you hand over the car to the lender by informing the lender that you would be unable to continue making the payments. When the lender understands your situation and accepts your request, you have to surrender both the car and the keys. 

This is known as a voluntary surrender because you give up the car on your own during the process.

How Do Car Repossession Loans Affect Your Credit? 

If your property has ever been repossessed, your lender may share your repossession report with the credit bureaus, which can lower your credit score. Some of the main causes of these degrading marks are-

Late Payments 

  • Your credit score will be negatively impacted by each missed payment that is more than 29 days late.
  • Your complete credit history and the extent of your late payments will both have an effect on your credit score.
  • The effect might not be so bad if your credit score is already poor. 
  • If you have maintained a good payment history and this is the only time you missed your payment then it can cause a sharp fall in your credit score.


Until the borrower does not pay the overdue amount in addition to any fees or charges due to delinquency, the account will continue to fall under the delinquent account.


  • When a borrower does not make the payments even after 3 to 6 months of the due date and is delinquent or irresponsible on his account then it may be considered a default. After failing to repay the loan, the borrower will default on the loan.
  • The credit history will be more negatively affected because the defaults are considered more sensitive and impactful than past dues.


  • When you have missed payments for a number of months, the lenders report collection accounts, which are sent to a collection agency. As there is a very low chance of getting their money, the loan is written off from the lender’s books, which means consider the amount as a loan. However, it does not vanish: as now the collection company owes you instead of the actual lenders. 
  • If your debt is high, this will negatively affect your credit score. 
  • If the credit is below $100, it will not significantly affect your credit score.

Credit-scoring agencies calculate your credit score by analyzing your credit reports. So, repossession and other relevant circumstances can both be the cause of a falling credit score. This is because your payment history is taken into account by both VantageScore and FICO to calculate the credit scores.

What is the Accurate Impact of Repossession on Credit? 

Because the impact of repossession can be calculated by taking various factors into account such as which credit bureau provided the data and which type of credit-scoring method was utilized in the calculation. So, it becomes a tedious task to find out the accurate impact of repossession on your credit scores.

Lender’s Legal Action Makes it Harder to Get Loans? 

One thing that should always be remembered is that the lender can also take legal action. Even though judgments from courts no longer exist on credit reports or affect credit scores, they are still public records. A lender’s search of your public records could make it more difficult to get loans in the future.

How Long Does it Take to Fix Your Credit After a Repossession?

Car loans with repossessions can remain on your credit report for 7 years from the date you stopped to pay. It takes one to two months to reflect the repossession on your credit history after the lender reports to the credit bureaus.

How to Improve Credit After a Repo?

Improve Credit After a Repo

You can still rebuild or repair your credit even though the “car loans with repossessions” process has been done. We should first be aware that credit repair and credit rebuild are distinct concepts. Credit repair can be done by eliminating incorrect details from your credit record. To boost your credit, you need to do the following things, which are really essential to do: 

  • Monitoring Your Credit: Make sure you are frequently active to monitor your credit and protect yourself from errors. You can use FICO to check your overall progress by getting a fee-free credit score. 
  • Making Payments on Time: You can reduce your credit utilization ratio or the ratio of your debt to your credit limit by getting your debt off your head.  Eliminating debt can assist you to improve credit score because 30% of your credit score is based on how much debt you have. 
  • Don’t Apply for New Borrowings: In addition, you should avoid applying for new credit. A hard inquiry is added to your credit report each time you submit an application for new borrowings/credit cards.  A “hard inquiry” means when a lender examines your credit report to make a decision whether to give you a loan or not. 

With each check, your credit score could be lowered by a few points. Because repossessed car loans are responsible for lowering your credit score, you possibly will not be able to get new credit.

Is it Possible to Remove Repossession from the Credit Report?

“Can I remove the car repo from my credit report?” might be your query. Unluckily, you can’t do this, even if it is accurate. However, if by mistake errors are appearing in your credit history, then you can remove them by objecting to them. But you can’t change the accurate details on your credit report. 

To determine whether your report contains any errors, contact the three major credit bureaus, Experian, Equifax, and TransUnion, for debt verification. 

How to Get a Car Back After Repossession?

You can get your car back after repossession in a few ways:

  • By paying off, complete the car loans with repossessions and additional repossession charges, if any.
  • In order to assist you in making up for missed payments and avoid repossession costs, a lender might be ready to reinstate your loan and initiate a payment method.
  • You could announce bankruptcy, which would terminate the car’s auction sale. You would be able to keep the car while a payment plan is made because of this.
  • You could take part in the auction and place a bid to get the car back if it has been sold at auction. You can obtain the car without additional payments if you have won the bid. However, there will probably be some costs that come with it.

Do I Still Owe After My Car is Repossessed?

Even if you fail to receive your vehicle back and it’s auctioned off, it directly means you are still in debt. If the balance of your loan is higher than the price of your auction sale, you will need to pay the unsettled balance, in the form of a deficit balance. In addition, you may be accountable for any expenses caused during the repossession process as well as for any repairs required to get the car ready for auction. 

My Car was Repossessed but I Got it Back? [What’s the Matter] 

Often, a borrower may be able to receive their car back from the lenders if they pay the entire loan and cover all costs associated with the repossession prior to the car’s auction sale. Sometimes the lenders also give a chance to reinstate the loan and after that, they can also make a payment plan according to their convenience and the borrower. In these scenarios, the repossession car loan may not be erased from the credit report; however, if you reach an agreement with your lender, the new payments you’re making will usually be mentioned in that (but not if you purchase the vehicle back at an auction).

Frequently Asked Questions (FAQs)

Q.1 How to buy a repo car? 

Here are some options for buying a repo car: 

  • Repo lender directly
  • Reseller service 
  • At a lender auction 
  • At a police repossession 
  • Dealer of used cars 

Q.2 How soon can I get my repossessed car back?

After repossessing, you generally only have 15 days to reinstate that car loan. If the rules of reinstatement are based on the loan agreement, then the time duration may be longer or shorter as described in your agreement. 

Q.3 How to reinstate a car loan after repossession?

The agreement of your car loan typically includes a clause that addresses how the right of repossession will be exercised. After car loans with repossessions, a borrower interested in reinstating their loan should immediately contact their lender to request a written reinstatement quote.  The total amount required to keep the loan up to date and the time period for doing this process will be included in the quote. 

Q.4 What do I do after repossession? 

Even after this, you have one more chance to get your vehicle back, which in the language of finance is called reinstatement. Contact your lender as soon as possible because the right to reinstate is not for many days. If you have the right then they will send you a quote for the reinstatement’s cost. This quote will only be valid for a short period of time, typically 10 to 15 days. 

Car Loans With Repossessions: How to Deal With It? 

It’s possible! When payments on an auto loan are so late, your lender has to repossess your vehicle without first informing you or going to court. Lenders usually send notices to borrowers that they have failed to make payments and inform them of the consequences that can arise. However, lenders might not specify precisely when they will seize the vehicle. 

Repossession can have devastating effects on both your current and future finances, for instance, your credit will be harmed and you may have to pay significant fees as well. Even though your lender may have the right to repossess your car, you can get it back by taking some careful and timely actions. 

Whether or not you get the car back in the end, your credit reports will show evidence of repossession. We have discussed it all from “how many car payments can you missed before repo”, “how to avoid a repo”, “what to do after a repo”, and “how to save your credit from getting ruined” to other related info. For any further queries, you can always get back to us.

Author Profile

Susan Anderson
Meet our Author of Our Editorial Team, Susan Anderson. She is an experienced writer and financial expert who has been writing about credit cards, card offers, services, and other related topics for more than twenty years. With her in-depth knowledge on the matter and her ability to distill complex topics into useful information for readers, Susan has become a go-to source for reliable credit card advice. In addition to her work at the editorial team, she also contributes to major publications such as The Wall Street Journal and With her expertise and industry experience, she is able to provide sound advice on all aspects of credit responsibly while helping people save money in the process.

Leave a Comment