Can You Personally Repossess a Car in California? What You Need to Know

Understanding Car Repossession in California

In California, car repossession laws are governed by the Commercial Code, specifically Section 9609. This law outlines the rights and procedures for lenders when a borrower defaults on their car loan. But can you personally repossess a car in California? Let’s explore this question and the intricacies of car repossession in the Golden State.

Who Can Repossess a Car in California?

Generally, two types of individuals can legally repossess a car in California:

Employees of the legal property owner (usually the bank or dealership)
Licensed repossession agencies

It’s important to note that repossession agencies must be licensed by the California Department of Consumer Affairs’ Bureau of Security and Investigative Services (BSIS). If you’re not an employee of the lender or a licensed repossession agent, you cannot legally repossess a car in California.

The Repossession Process

When a borrower defaults on their car loan, the lender has the right to repossess the vehicle without prior notice. This means that as soon as you miss a payment, the lender can initiate the repossession process. However, there are some restrictions on how and where a car can be repossessed:

Repossession agents can take the vehicle from any publicly accessible place, including your driveway or a parking lot
They cannot enter a private building or secured area, such as a locked garage, without permission
The repossession must not involve a breach of peace, meaning no threats, violence, or property damage

What Happens After Repossession?

Once a car is repossessed, the lender typically sells it to recoup their losses. This is usually done through an auction or a private sale to a used-car dealer. The borrower is entitled to several written notices after the repossession, including information on how to get the vehicle back.

Alternatives to Personal Repossession

If you’re a lender or have a financial interest in a vehicle, it’s crucial to follow legal procedures for repossession. Instead of attempting to repossess a car personally, consider these alternatives:

Hire a licensed repossession agency
Work with the borrower to create a payment plan
Pursue legal action through the courts

Protecting Yourself as a Borrower

If you’re struggling with car payments, it’s essential to be proactive:

Communicate with your lender about financial difficulties
Explore options for loan modification or refinancing
Consider voluntary surrender if repossession is imminent

Remember, even after repossession, you may still owe money if the sale of the vehicle doesn’t cover your outstanding balance plus repossession costs.