How Long Should You Wait to Get a Car After Repossession?

Repossession can be a stressful and overwhelming experience, leaving you without a car and unsure of your next steps. If you’re wondering how long you should wait to get a car after repossession, the answer depends on several factors, including your state’s laws and the terms of your loan agreement. Here’s what you need to know:

Reinstatement Period

Typically, you’re allowed only 15 days after the repossession to reinstate the loan. To reinstate the loan, you need to pay off the overdue amounts, plus certain costs and fees, to bring the loan current. However, if your right of reinstatement is based on the loan agreement, then the time period might be more or less, depending on what the agreement says.

Redemption Period

You can usually redeem the car at any time prior to the private sale or auction. To redeem, you pay the entire loan balance plus certain costs and fees. The notice of sale, which the lender should have sent you, will contain information about what you need to do to redeem, including a telephone number for you to call to find out the payoff amount and how to make payment.

Purchasing at Auction

If reinstatement or redemption isn’t feasible, the lender can auction the car. Bidding on the vehicle at auction may result in a lower cost compared to redemption or reinstatement. However, consider the risk of losing the vehicle to a higher bidder or being liable for any deficiency if the car sells for less than the loan amount.

Remember, the specific timeline for getting a car after repossession varies depending on your state’s laws and the terms of your loan agreement. It’s crucial to act quickly and contact your lender as soon as possible to explore your options and prevent further damage to your credit score.