How Do You Get a Car Back After Repossession?

Unfortunately, life events like losing a job, a personal emergency, or an unexpected cost can cause us to fall behind on our car payments or even fail to make payments altogether, and we lose our new car to repossession. It happens to a lot of people, and there’s no shame in it. However, now the question becomes “How do you get a car back after repossession?” Provided that you have the money you need, there are some steps you can take. Unfortunately once the car has been repossessed and if you do not have the money to pay the outstanding balance there isn’t a lot you can do to get it back. Read our guide below to learn about your options and to see if you can get your car back after a repo.

How to Get a Repossessed Car Back: Reinstate the Loan

Repossessions are often done without warning. If you weren’t notified that the lender or leasing company was planning to repossess your vehicle, you can most likely get the car back if you pay the outstanding balance and repossession fees. However, if you were given notice of the impending repossession via phone conversation or written notice, it may be more difficult. You’ll need to meet certain requirements before they’ll reinstate the loan.

Before moving forward to get your car back from repossession, you should reassess your finances to make sure you can afford to keep up with car payments and car costs. It may also be worth checking to see if you can refinance your car loan for a lower price. Calculate your monthly expenses – and be sure to take emergency expenses into account – to ensure that reinstating the loan is right for you.

How to Get a Repossessed Car Back: Purchase at Auction

In general, borrowers who lose their car to repossession don’t have the money to purchase the vehicle outright, this is why lenders often sell repossessed vehicles at auctions – to earn money to put toward the associated loans. If you have the money though, you can attend the auction. You will be given notice about the auction a month beforehand, giving you the opportunity to buy the car back for the full asking price and repossession fees.

How to Get a Repossessed Car Back: File for Bankruptcy

If you’re struggling with other debts and plan to file for bankruptcy, doing so can increase your chances of holding onto the car. Filing for bankruptcy involves the courts and makes it a legal requirement for the creditor to ask permission from a judge to repossess the vehicle. Filing for bankruptcy isn’t a fix-all solution though, there are downsides, such as credit score damage. However, you’ll have the best chance of keeping your car if you file before the car is sold at auction.

Rely on Cactus Jack's Auto for More Financial Advice

Now that you know the answers to the question, “Can you get your car back after a repo,” you hopefully have a better idea of what your options are moving forward. Contact us at Cactus Jack's Auto if you have any specific questions or need more help navigating your options after repossession. While you’re here, take some time to yourself and browse our favorite spots in Phoenix. We’re happy to serve customers from Surprise to Glendale!