Buying Repossessed


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Buying Repossessed

Buying Repossessed

Missing even one car payment can have dire consequences. Depending on a borrower’s contract with his lender, even one missed payment can send his account into default. Once a vehicle loan falls into default, the lender reserves the right to seize the vehicle through repossession. Car repossession laws vary by state, but consumers often have the right to recover their vehicles after repossession. In some cases, an individual may even be able to reinstate his auto loan.

Buy Back a Repossessed Car From the Lender

Contrary to what many confused and angry consumers may believe following a repossession, the lender benefits more from receiving regular payments on the auto loan than by repossessing the car. If an individual is willing to compensate the lender for the remainder of the loan in addition to any repossession and storage fees the lender incurred after repossession, he can likely buy back his car. Although lenders aren’t required to do so, allowing an individual to buy back his car saves the lender the risk of losing money on the car at an auction.

Bid On the Repossessed Car At the Vehicle Auction

According to the Federal Trade Commission, some states are required to inform consumers of what will happen to their vehicles after a repossession. In this case, as long as the individual knows where and when his car will be auctioned off, he has the right to attend the vehicle auction and bid on his former car. Should he have the high bid, he may recover his repossessed car.