Car loans · Elgin Auto Sales & Service Center · Elgin, IL
What Happens If Your Car Is Repossessed
Losing a car to repossession is hard, but you still have rights and protections. This guide follows the Consumer Financial Protection Bureau's auto loan answers: what lenders can and cannot do, how to get your belongings back, and what happens when the car is sold.
Noticerequired before repossession in some states
Belongingscontact the lender right away
Up to 7 yearsa repossession can stay on credit reports
Deficiencyyou may owe what the sale does not cover
The short answer
The CFPB says that in many states a lender can repossess a vehicle without a warning or a court order after you miss a payment, while other states require a notice first. After a repossession you have the right to be notified before the vehicle is sold, and you may be able to buy it back by paying the full loan amount plus repossession costs. If the sale brings in less than you owe, you may owe the difference, called a deficiency balance; if it sells for more, you are entitled to the surplus. A repossession could stay on your credit reports for up to seven years.
Before a repossession: talk to your lender
The CFPB says that as soon as you know you cannot make a monthly payment, you should contact your lender or servicer, whoever you make your payments to, to ask about options such as an affordable payment plan, changing your due date, or pausing payments through forbearance. Get any agreement in writing, and ask how it would affect your credit report.
In many states, a lender can repossess a vehicle without a warning or a court order after you have missed a payment. Other states require the lender or servicer to send you a notice first, telling you which payments were missed and giving you time to make them up. If you are an active-duty servicemember, the Servicemembers Civil Relief Act (SCRA) prohibits repossession without a court order for auto loan contracts you entered into before your military service.
From What should I do if I can't make my car payments? (Ask CFPB) and What happens if my car is repossessed? (Ask CFPB), read November 9, 2026.
What a lender cannot do: breaching the peace
Under some state laws, a lender cannot repossess a vehicle unless it can do so without breaching the peace. The CFPB says that generally means threatening or using physical force, removing a vehicle from a closed garage without permission, or continuing with a repossession after you have resisted or refused to allow it.
If the lender commits a breach of the peace, the CFPB says you can contact law enforcement, and the breach may also give you a claim for damages or a defense that may lessen the amount you eventually owe after the vehicle is sold. Auto loan servicers must make sure every repossession is lawful; if you believe yours was an error, contact your lender or servicer immediately.
From What happens if my car is repossessed? (Ask CFPB), read November 9, 2026.
Getting your belongings back
It is common to have belongings in a car when it is repossessed. The CFPB says to contact your lender right away to arrange a time to retrieve your property, and to document the items you left in the vehicle and their estimated value.
If the lender or repossession company demands payment to return your property, the CFPB says you should consult an attorney. You can also file a complaint with your state attorney general or consumer protection office.
From What happens if my car is repossessed? (Ask CFPB), read November 9, 2026.
After a repossession: your options
The CFPB describes these rights after a vehicle has been repossessed:
| Option | What it means | Where it applies |
|---|---|---|
| Cure or reinstate the loan | Pay the overdue payments plus the costs of the repossession, usually within a set time period, to get the vehicle back. | In some states, under state law |
| Notice before the sale | You must be told before the vehicle is sold or kept to pay your debt. For a public sale, you are told the date, time and place; for a private sale, the date it could be sold. | Even where you cannot cure or reinstate |
| Redemption (buy it back) | You may be entitled to buy back the vehicle before the sale by paying the full loan amount plus repossession costs. | Public or private sale |
| Dispute an error | If the repossession was a mistake, contact your lender or servicer, submit a complaint, or pursue a legal action; you can also dispute it with the credit reporting companies. | Any repossession made in error |
From What happens if my car is repossessed? (Ask CFPB), Consumer Financial Protection Bureau, read November 9, 2026.
The sale, fees and deficiency balance
Your lender generally charges a fee for picking up the vehicle. The CFPB says the fee must be reasonable, which is generally decided by a court and depends on the type of vehicle, how it was taken and where. You can ask your lender for a list of the repossession costs.
Lenders must sell the vehicle in a commercially reasonable manner. If it sells for less than the amount left on your loan plus repossession fees, you may be responsible for the difference, known as a deficiency balance, and the lender may try to collect it or hire a debt collector. If the vehicle sells for more than you owe, you are entitled to the surplus after fees. The CFPB says you can consult an attorney if you think the sale price was unreasonable.
From What happens if my car is repossessed? (Ask CFPB), read November 9, 2026.
How a repossession affects your credit
Falling behind on car payments affects your credit, which can make it harder or more expensive to borrow in the future. The CFPB says a repossession could stay on your credit reports for up to seven years and can also mean higher insurance rates.
If the repossession was made in error, you can dispute it with the credit reporting companies to have it removed. You may also have other rights under your state law; the CFPB points to your state attorney general, your state consumer protection office, a private attorney or your local legal services office for more information. See how to buy a car with bad credit.
From What happens if my car is repossessed? (Ask CFPB), read November 9, 2026.
Financing a used car at Elgin Auto Sales & Service Center
Shopping for your next vehicle? Browse our used inventory, see our financing options, start a finance application, or get a value with our trade-in form.
Our sales department at 1200 E. Chicago St. in Elgin is open Monday to Friday 9 a.m. to 7 p.m. and Saturday 9 a.m. to 6 p.m., and is closed Sunday. Get directions.
Car repossession FAQ
Can my car be repossessed without warning?
In many states, yes. The CFPB says a lender can repossess a vehicle without a warning or a court order after you miss a payment, but other states require a notice first that gives you time to make up the missed payments.
Can I get my car back after it is repossessed?
Possibly. Some states let you cure or reinstate the loan by paying the overdue amounts plus repossession costs within a set time. You may also be able to buy the car back before the sale by paying the full loan amount plus repossession costs.
What is a deficiency balance?
If the repossessed vehicle sells for less than the amount left on your loan plus repossession fees, the CFPB says you may be responsible for the difference. That amount is the deficiency balance.
How long does a repossession stay on my credit report?
The CFPB says a repossession could stay on your credit reports for up to seven years.
How do I get my things out of a repossessed car?
Contact your lender right away to arrange a time to retrieve your property, and document what you left in the vehicle and its estimated value. If you are asked to pay to get your property back, the CFPB says to consult an attorney.
What are your sales hours?
Monday to Friday 9 a.m. to 7 p.m. and Saturday 9 a.m. to 6 p.m. We are closed Sunday.
Shopping for your next car?
Visit us at 1200 E. Chicago St. in Elgin.
Sources
Repossession, notice, breach-of-the-peace, reinstatement, sale, deficiency and credit-report guidance are from the Consumer Financial Protection Bureau's Ask CFPB auto loan answers, read November 9, 2026. This page is not legal advice; state laws differ. This is general information, not financial or legal advice. Our address, sales and service hours are from our own website, checked the same day. Photo is of our dealership.
- What happens if my car is repossessed? (Ask CFPB), Consumer Financial Protection Bureau, read November 9, 2026
- What should I do if I can't make my car payments? (Ask CFPB), Consumer Financial Protection Bureau, read November 9, 2026
- Home page: address and sales hours, Elgin Auto Sales & Service Center
- Service page: service hours, Elgin Auto Sales & Service Center