5 Things to Know After a Repossession

If you’ve fallen behind on your vehicle payments, you might find yourself on the receiving end of a repossession. A repossession occurs when a creditor, lender, or bank that has a lien on an asset reclaims the asset after a period of missed payments. If your car or truck has been repossessed, don’t panic. Here’s five things you need to know in the immediate aftermath.

  • There might be a mistake. If you haven’t been making payments on your auto loan, you probably know exactly why your car was repossessed. But if you’ve been making payments, it’s possible that there’s a mistake. Contact your lender and ask why your car was repossessed.
  • Your lender can reclaim the car—but not the items inside. Your lender has the right to repossess your car—but they don’t have the right to any personal property inside of the vehicle. So, if you left your favorite pair of pumps or CD collection in your car, your lender is required to give it back. Contact your lender and ask about any items left inside the car during the repossession.
  • Your lender doesn’t have the right to damage your property. Similarly, your lender doesn’t have the right to damage any of your personal property. If your car was parked in your garage, for example, your lender doesn’t have the right to break down the door to get the car. If you feel like your rights were violated, consider speaking to a consumer lawyer.
  • Repossessions don’t stay on your report forever. In the aftermath of a repossession, you might feel totally hopeless. However, know that repossessions only stay on your credit report for seven years. Simply waiting will improve your credit score over time.
  • There is hope for another loan. If you’ve got a repossession on your credit report, you may have trouble getting another auto loan. However, bad credit auto loans in Trenton, NJ can get you into the safe and affordable vehicle you need.   

Are you dealing with a repossession? A bad credit car loan in Trenton, NJ from PA Auto Credit may be able to help. Give our team a call today at 800-371-1769 to learn more or get started!