Car Repossession Process

In today's troubled economy, many people are finding it difficult to make ends meet. This is resulting in more foreclosures and car repossessions than normally happen, as people simply cannot afford to pay for even these necessities. Car repossession is becoming commonplace and it is likely to see cars being towed away to go to the auction block if the owner cannot redeem them.

Late Payment

When a person misses a payment on his car, this may be the first step in the car repossession process. Many companies have the right to repossess even when you are only one payment behind and that one payment is only a day late. However, most companies will give you a chance to pay the payment and a late fee since they really do not want to repossess your car. However, if it becomes clear to the company that you can no longer afford to make the payment on your car, the company will begin the repossession process.

Late Notice and Phone Call

The company sends you a late notice. Then a representative may call you and ask you when you will make the payment. Based on the conversation, the company may then contact a repossession company and advise the staff to pick up your car. The repossession company will take your car from your home---even if you park your car in your driveway---or from your place of work or even from the supermarket parking lot while you are shopping. The repossession company is not allowed to remove your car from inside a protected place such as inside your garage, but they may remove it from private property as long as the car is not behind a locked door. They may take the car if the car is locked.

Repossession Process

Once your car has been repossessed, you will receive a notice from your finance company letting you know they intend to sell your car at auction and giving you an opportunity to get your car back by paying all late payments up to date along with all other fees incurred, including the repossession company's charges, storage and any other processing fees to have your car repossessed. The finance company will give you a date by which you must make your payment in order to get your car back. After that date, the finance company will sell your car at auction. The finance company applies the price received to your outstanding balance and bills you for any amount remaining. The finance company will report your car repossessed on your credit record.