What Happens When a Car is Repossessed?

Whether you finance or lease a car, you technically don’t own it even if you signed on the dotted lines — that is, not until it’s paid off. Kingsville drivers who ask, “What happens when a car is repossessed?” The leasing company or bank takes the vehicle back from the borrower. Learn more about what happens when a car gets repoed with Allen Samuels CDJR Aransas Pass in Aransas Pass. 

My Car Was Repossessed, What Happens Next? 

If you find yourself asking, “My car was repossessed, what happens next?” Understand that repossession is a right of the lender or leasing company that holds your auto loan once you choose to lease or finance your new or used vehicle. Port Lavaca drivers such as yourself still have their rights in this situation, though, as follows: 

• The bank must notify you before the car is to be placed and sold at an auction. You may have the opportunity to buy back the vehicle for the amount owed along with storage fees and repossession fees.
• Depending on the bank or lender, it’s possible to have the auto loan reinstated if you can pay the repossession expenses and amount you’re behind on. 

What Happens When a Car is Repossessed Voluntarily vs. Involuntarily? 

Usually what happens when a car gets repoed is the borrower voluntarily returns the vehicle when they realize they can no longer make payments. You can call your bank or lender near Corpus Christi to repossess the vehicle. What happens when a car gets repoed and my credit is affected? Here is what happens when a car gets repoed and it affects your credit score: 

• Remains on credit report for seven years after delinquency date 
• Applications of auto loan within less than a year of repossession will likely be denied. 

What is a Deficiency Balance? 

What happens when a car is repossessed and there’s a deficiency balance? The bank owes you the difference in money only when they sell the vehicle for more than what’s owed on the loan. Contact finance if it’s sold for less. 

Learn More Information About Repossession at Allen Samuels CDJR Aransas Pass 

If you’re wondering, “My car was repossessed, what happens next?” Do not hesitate to contact us at Allen Samuels CDJR Aransas Pass! We are here to help with all your automotive financing needs and questions. What’s more, we want you to be armed with all the information you need to responsibly take out an auto loan and know your rights in the event your vehicle is repossessed.