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How to get your Car Back after Repossession

How to get your Car Back after Repossession

Nobody wants to have to go through a repossession but it is something too many people have to experience. While it can be devastating at the time, it’s a temporary situation that you can recover from. You can even get your car back in most situations.

Our car loan team outlines how to get your car back after repossession.

 

Car Loans and Repossession

The vast majority of lenders view repossession as a step of last resort. Nobody wants to have to go through it and lenders don’t want to put you through it unless they have no choice.

 

They would much rather work with you to help pay off the loan.

 

Repossession is not a move of first resort. It’s a move of last resort. Before it happens, you will usually receive a payment reminder, a default notice, formal notice of legal proceedings, and then a notice from a court of some kind.

 

 

Getting Your Car Back After Repossession

You have three main ways to get your car back after it has been repossessed. You can reinstate the loan and begin paying it again, pay off the loan in full or find out what auction the car is being sold at and bid on it.

 

Reinstate the Car Loan

Depending on the lender and the situation, you may be able to agree to begin repaying the loan again. Not all lenders will agree to this as some will prefer just to cut their losses.

 

If yours agrees, you’ll have to pay everything you owe plus any fees incurred throughout the repossession process. If you agree to all that, you may be able to set everything straight and resume payments.

 

Fees will usually include towing and storage, any debt collector fees, legal fees, and any administration charge the lender wants to levy.

 

Settle the Car Loan

Another option is to offer to settle the car loan in full. If you have the money to do this, you can ask the lender to redeem the loan. Request a settlement figure from them and pay it off however you need to.

 

The settlement figure will include the total amount of the loan, any towing and storage fees, legal fees, debt collection fees and admin fees incurred by the lender. Make sure these are fair and transparent before you pay.

 

Buy Your Car at the Auction

You can also buy your car back at auction, although this can be difficult. Most lenders will dispose of repossessed cars at auction and there is nothing stopping you finding out where and when and buying it.

 

Some lenders will tell you what’s happening, what auction, and even the date. Not all lenders will though but there’s no harm in asking!

 

Once you have your car back, you’re going to have some work to do to recover your credit score. That’s a more gradual process and something we cover frequently on our blog.

 

These are the 3 ways to get your car back after repossession in Canada. If you have any more questions, please don't hesitate to contact us here.

Categories: Car Loan

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