Guide to Car Repossession
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is Car Repo?
How Does Car Repo Work?
When Can a Car Be Repossessed?
Lack of Auto Insurance
Is a Notice Required?
Vehicle Repossession Laws
Your Personal Property
Selling Price
Can Filing for Bankruptcy Protect You From Car Repo?
Impact of Car Repossession on Credit Score
Impact of Going to Collections
How Long Repossession Stays on Your Credit Score
How Much Does Car Repo Cost?
Leftover Cost of the Loan
Fees
Can You Get Your Car Back After Repossession?
5 Strategies to Avoid Car Repossession
1. Communicating With Your Lender
2. Refinancing Your Car Loan
Pros & Cons of Refinancing a Car
Potential for a lower interest rate Potential for lower monthly payments Different loan terms
Possible prepayment penalty when you use the new loan to pay off your old loan (refinancing with the same lender may be a way to avoid or minimize this fee) Fees involved in refinancing a car Temporary credit score dip
3. Voluntary Repossession
4. Paying Off the Loan
5. Reinstating the Loan
Refinancing an Auto Loan Today
Frequently Asked Questions
Photo credit: iStock/gremlin
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About the Author
Kelly Boyer Sagert is an Emmy Award-nominated writer with decades of professional writing experience. As she was getting her writing career off the ground, she spent several years working at a savings and loan institution, working in the following departments: savings, loans, IRAs, and auditing. She has published thousands of pieces online and in print.
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