Connecticut law allows certain lenders to repossess goods, such as motor vehicles, upon a buyer’s failure to make payment or fulfill another contractual obligation. ... After that time, the vehicle is to be resold with the sale proceeds used to cover the costs of the sale, repossession , and balance due under the contract.
Do you still have to pay off your car if it gets repossessed?
Even if your car is repossessed and later sold at auction, you might not be off the hook. If you car sold at auction for less than you owed on the loan, you must still pay the remaining balance to your lender. ... If you do not make those payments , your creditor can sue you in court.
How do I get my repossessed car back in CT?
Options vary by state, but you may be able to reinstate your loan (pay off all payments missed, repo charges, and other penalties), pay off the whole loan (“redeeming” the car), or wait until the auction and attempt to buy your car back there.
Where does your car go after being repossessed?
In most cases, once the car is repossessed, the lender will sell it either at auction or through a private sale , often to a used-car dealer.
How does it work when your car gets repossessed?
Repossession can occur as soon as you default on repayment . ... Though a loan contract may give a lender the right to take your car away after you default, the lender will typically will alert you of your missed payments and attempt to collect payment prior to repossessing the vehicle.
How long do I have before my car is repossessed?
In general, you can expect car repossession to occur if you miss three or more payments in a row on your auto loan . One missed payment can result in repossession, but it’s less common. A “missed payment” is considered a payment that is more than 30 days late.
How much are repo fees in CT?
Personal Property in Repossessed Vehicle
The lender must give the buyer at least 60 days after repossession to retrieve the items, but if the buyer fails to retrieve the property within 15 days after the vehicle was repossessed, he or she may be subject to storage fees of up to $25 (CGS § 36a-785(c)).
Can I go to jail for hiding my car from repo man?
You can go to jail for contempt of court (it’s rare and difficult, but it’s possible), and you really don’t want that to happen. Otherwise, the general rule is that it is not illegal to “hide” your vehicle from the repo man .
Should I pay off a repossession?
Paying off a repossession can help your credit score since it reduces debt owed, and you may be able to get the item removed from your credit report. However, the significance of impact on your score depends on your credit history and profile and whether you take a settlement.
How can I stop my car from being repossessed?
- Communicate With Your Lender. As soon as you think you might miss a car payment, reach out to your lender to discuss your options. ...
- Refinance Your Loan. ...
- Reinstate the Loan. ...
- Sell the Car Yourself. ...
- Surrender the Vehicle Voluntarily.
How bad does a repo hurt your credit?
A repossession can stay on your credit report for up to seven years, making it harder for you to qualify for other loans. Repossessions have a severely negative impact on your credit and can show lenders that you may not be able to make payments on the property you purchase.
Can I get my car back after repossession?
Often, a bank or repossession company will let you get your car back if you pay back the loan in full , along with all the repossession costs, before it’s sold at auction. You can sometimes reinstate the loan and work out a new payment plan, too.
How do I get my car reinstated after repossession?
In order to reinstate a loan, you need to make up any missed car payments plus any repossession fees in one lump sum. A reinstatement must be noted in your loan agreement, regardless of your state laws. If it’s not listed, your lender isn’t going to allow you to reinstate, even if you have the money to do so.
Can your car be repossessed during this pandemic?
While many lenders have begun to voluntarily forgo repossessions during the pandemic, if you get behind on your payments, your lender still could repossess your car —sometimes without warning.” The FTC also pointed out that even if your car is repossessed, you may still owe money on it.
What happens after a repossession?
What happens after a repossession? After your car is repossessed, you may have time to redeem it . ... If you can’t afford to pay the redemption amount, the car company will sell your car at a public auction. The loan company must tell you the date and location where it will sell the car.
How long does a repo stay on your credit?
A repossession takes seven years to come off your credit report. That seven-year countdown starts from the date of the first missed payment that led to the repossession. When you finance a vehicle, the lender owns it until it is completely paid off.
