A few quick facts about repossessed cars
Repossession laws vary from state to state.
Lenders don’t want to repossess cars.
One missed payment can trigger repossession.
A repossession affects your credit for seven years.
We are receiving mixed messages regarding trends in repossessed cars. Some experts see the recent spike in repos as the market sorting itself out after record-low repossession rates the past couple of years. Consequently, there’s no reason to worry — yet. Others are sounding an alarm that the current repossession increases will persist into the future as inflation rises, the economy worsens, and the bottom falls out of used car prices.
This difference of opinion makes for a fascinating debate in the abstract. However, as the past-due payments begin stacking up with the possibility of repossession looming on the horizon, it becomes much more than a thought exercise. An auto repossession is a significant life event with negative repercussions lasting for years. It’s never too early to put a plan in place if things go wrong and repossession becomes possible. Here are some facts you should know and a few steps you can take if the unthinkable happens. Our advice here primarily applies to repossessions caused by defaulting on a loan. Defaulting on a lease is a different can of worms. Tip: Regulations governing the repossession of cars vary from state to state. We’re providing a broad, general explanation of the regulations and processes repossession involves. Refer to your state attorney general’s website for the definitive rules in your area.What is repossession of a ca …