You may be able to get your leased vehicle back after repossession. Your bank might allow you to pay either your past due amount or the total price of the car in addition to late fees and repossession costs to get the car back. To avoid paying the full vehicle cost and extra fees, call your lender before the vehicle is repossessed.
Call Your Bank
Contact your bank before your car is repossessed. Your leasing bank may offer payment options or defer your payments if you're experiencing financial hardship. If it doesn't, expect the bank to repossess your vehicle. Once the car is collected, contact your bank immediately to discuss your options. You may have lost the opportunity to continue leasing and find you'll need to pursue a finance or pay cash for the car's purchase price instead.
The Repossession Process
Reasons for repossession are noted in your lease contract. A repossession company can take your car from just about anywhere, so if possible, make arrangements to return the vehicle instead of having it taken from you unexpectedly. Once the car is taken back, expect to receive a letter that outlines your payment options and the date the bank plans to sell the vehicle. Once the car is sold, the leasing bank will bill you for the remainder of your car's purchase if its sales price didn't cover the car's total cost. Once the vehicle is resold, you cannot purchase it back from your leasing bank.
Time Frame
Review your leasing contract; it likely states that the bank can repossess your vehicle after one missed payment. Repossession time frames differ by bank. Once the vehicle is repossessed, you must act quickly to get it back. If you plan to apply for a loan to purchase the vehicle for its total price, an approval can take up to 5 business days. Mail is not guaranteed, so if there's a delay in receiving your notification from the bank, you'll have even less time to purchase it back.
Money and Vehicle Retrieval
Expect to provide a bank or certified check to purchase your vehicle back. A personal check is not acceptable. Your bank may require you to pay the establishment holding your vehicle, such as an auction or impound location. Ensure you obtain payment and pick-up instructions from you bank. Expect to also provide proof of insurance again. It is unlikely that you can bid on your vehicle if the bank auctions it off. Most auctions do not allow the general public to bid on vehicles; you must have a dealer's or wholesaler's license.
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