Your lender retains a security interest in your car when you sign a car loan.If you don't make your payments on time, the lender can take your car and sell it to pay back the loan.You can get your car back if you pay off the loan in full.You may be able to get the loan back if you can't afford it.If you lose the right to do anything after your car is sold, you must act fast, since not all states require you to negotiate with your lender.
Step 1: You should check your loan agreement.
There may be a clause in your loan agreement that allows for reinstatement.Even if your law doesn't allow it, some states, such as California, give you the right to get your car loan back.Links to each state's law can be found at http://www.creditinfocenter.com/legal/ auto-repossession-laws.shtml.
Step 2: Contact your lender.
If your lender doesn't have a dedicated line for repossessions, you can call the general customer service number.If you've dealt with someone before, you may want to speak with them first.Your case may be helped if you have an existing relationship with the representative.Ask your lender for a quote.The amount of money you must pay to bring your loan current will be sent to you by your lender.If you live in a state that gives you the right to reinstatement, you're better off than if you don't.Before you call, make sure you understand your rights and read your state's law.Even in states with laws that give you the right to get your loan back, you have a very short period of time after your car is taken away.
Step 3: Consider talking to an attorney.
If the lender is unwilling to negotiate with you, an experienced consumer rights or debt attorney may be able to help you get your car back.Look for a consumer debt or credit attorney who is licensed to practice in your area.Searchable directories can be found on the websites of many local bar associations.You can describe your situation and be matched with attorneys who are best able to help you.Even if you can't afford an attorney, many of them are willing to give you a free consultation.The fees you would pay to the lender and the lot to get your car back may be more than the attorney's fees.In some instances, an attorney may be able to get late fees dropped, or work with the lender to adjust your interest rate or refinance your car on terms that are more affordable to you.
Step 4: You can offer alternatives.
If you don't have enough money to cover the back payments, you may be able to arrange for a partial reinstatement or a new payment plan.It is usually good for a couple of weeks after you receive a quote.The deadline is mentioned in the notice.If you can't pay the amount required to bring the loan current, ask for a partial reinstatement.This will allow you to get your car back.You owe your lender $600 if you haven't made your car payment in three months.You can pay $300 for that.Monthly payments of $225 are required for your quote to be valid.You can spread out the back payments and pay them along with your regular loan payment if you can pay $275 for six months.If you want to get your car back, make sure you don't get carried away.Don't offer a monthly amount that you think will be hard to pay on a regular basis.Even if your state gives you the right to repossess your car, you may lose that right if it's your second time.
Step 5: Payment arrangements should be made.
Unless your lender has agreed to an alternate arrangement, you must pay all of the late payments upfront along with fees to have your loan reinstated.The amount of money you have to pay to bring your car loan current should be included in your quote.Late fees and penalties may be included in this amount.If you've negotiated an alternative deal with your lender, you may want to ask for another written statement of the amount now due to reinstate your loan.Before you send payment to your lender, make sure you write down the amount you have to pay.Make your monthly car payment a priority by taking a hard look at your budget.If you miss a payment again, you may have less wiggle room.Repossession fees can be included in the payment you make to your lender.When you pick up your car, you can expect to pay these fees at the lot.
Step 6: Use a credit counseling service.
A licensed credit counselor can help you make your bills more manageable if you are behind on other bills or have difficulty budgeting monthly payments.The U.S. is located in the United States.The Trustee Program has a list of approved credit counseling agencies.If you decide to use a credit counseling service, make sure you choose one that won't charge you excessive fees.The credit counseling service will let you know if the process would benefit you.A credit counselor will look at your entire financial situation and help you work with your creditors to create a debt management program that fits in your budget and will help get you out of debt.
Step 7: If you have any documents, sign them.
You may have to sign a new loan agreement if you get different terms from the original loan.Before you sign your loan agreement, make sure you understand the amount of your payments and how long you have left on the loan.Make sure you understand the interest rate and what will happen if you pay it off early.Automatic payments with your lender can be set up if you can afford it.On the due date, the amount of your car loan will be withdrawn from your bank account.
Step 8: Find out the location of your car.
The address where your car is being kept will be on the notice you received.If you haven't received a notice yet, you can call your lender to find out the location of your car.
Step 9: There are documents to gather.
You will need to bring identification documents such as a driver's license, as well as documents that prove you are allowed to take back the car.You should have copies of all communication between you and the lender, as well as your original retail installment sales contract.Copies of any written notices assuring you of your right to take your car should be brought.Proof of your payment is required.The lot custodian will allow you to drive your car off the property if you bring your driver's license and proof of insurance.To have your loan reinstated, keep the name and phone number of the person you worked with.If you have a problem getting your car back, you need to talk to the lot attendant.
Step 10: Ask about the fees.
If you call the lot before you go, you can find out how much you'll be charged.What payment methods are acceptable?Many of these lots won't accept credit cards and will only accept money orders or cashier's checks.A holding fee will be charged for each day your car sits on the lot before it is sold.The fees would be passed on to the person who bought the car.In some cases, you can get rid of the fees.If the fees on top of the amount you already paid the lender will put you in a bind, you might want to talk to a consumer rights lawyer about your options.When you call the lot, ask what documents are needed to get your car back.You don't want to run into problems if you have everything listed.When you speak to the lot attendant, write down exactly what you need, and repeat the list back to confirm it.Get the name of the person you spoke to.
Step 11: Pick your car up.
You'll want to get a friend to drive you to the lot so you can complete the paperwork and get your car.It may take up to a week for your car to be ready for you.If you keep in touch with your lender and the lot, you won't have to worry about getting your car back.Don't wait for a call.If the lot attendant doesn't give you your car back, you should call your lender.Before you drive off the lot, check for any personal items you may have kept in the car.If you have a right to these items, the custodian or your lender should be able to tell you how to get them back.