What Happens When Your Car Gets Repossessed?

If you’re having trouble with your loan payments, you may be wondering, “What happens if my car gets repossessed?” A repossession can throw a wrench into your plans, but there are ways to recover from one, especially with our help at PA Auto Credit.

When Can They Repossess My Car?

In Pennsylvania, your car can be repossessed as soon as you default on your loan. While there are several ways you can end up in default, like letting your insurance lapse, the main cause is being too far behind on your monthly payments. Read your contract carefully and take note of any conditions that would put you in default.

Can I Get My Car Back?

On the day after your car is repossessed, you should receive a notice in the mail. This notice will tell you whether or not you can catch up on your missed payments and get your car back. Check the notice for the date on which the dealer intends to re-sell the car, as you may not be able to get it back after that point. All of these details are legally required, so if any are missing, you may want to contact a lawyer.

What Happens If They Sell My Car?

If you aren’t able to catch up on your payments before the car is sold, the dealer will apply any money saved to your loan. If there’s a balance left over, you are required to pay it. This is called a deficiency balance. Dealers can include any costs of the repossession in this balance, like hiring a tow truck or putting the car back on the market.

Make Your Financing Plan Work for You in Fairless Hills, PA

Having trouble keeping up with your monthly payments? We’re here to help. Call us at PA Auto Credit or stop by in person and find out more about how we can assist you. Work out a plan with us and stay on the road!