What is repossession?
Repossession is the act of taking possession of personal property, like a car or truck, that’s used as collateral to secure a loan if a borrower defaults on a loan.
Why is my vehicle being repossessed?
Your vehicle may be repossessed if you’ve fallen multiple payments past due, defaulting under the terms of the loan agreement.
If you need help getting back on track with payments, contact us. There may be flexible payment options available to you.
Can I prevent the repossession?
Depending on the circumstances, there may be options available to prevent repossession prior to us obtaining the vehicle. Catching up on missed payments “now due” to bring your loan current, paying your loan current and enrolling into a payment program, or paying off your loan in full are all options that can help you avoid repossession.
What happens after repossession?
After repossession, we would typically sell the vehicle to recoup some or all the outstanding loan balance and fees. If the vehicle is sold for more than the loan balance and fees, the difference would be sent to you.
If the sale proceeds do not cover the entire balance, you would still owe the remaining amount, which is referred to as the deficiency balance.
Repossession can also negatively impact your credit score, making it more challenging to obtain credit in the future.
Can I get my vehicle back after repossession?
In some cases, you may have the option to get your vehicle back by paying off the outstanding loan balance and any associated fees. However, this option is often time-sensitive, and may not be available once the vehicle has been sold.
What are my rights during the repossession process?
As a borrower, you have certain rights during the repossession process, which typically include the right to receive notice before repossession and the right to dispute any inaccuracies related to the repossession.
Each state has different laws and regulations when it comes to repossession, so make sure to familiarize yourself with them.
Will repossession affect my credit score?
Yes, repossession can have a negative impact on your credit score. It will likely result in a derogatory mark on your credit report, which can lower your score and make it harder to qualify for loans or credit related products in the future.
What should I do if I can't afford my loan payments?
If you're struggling to afford your loan payments, it's crucial to communicate with us as soon as possible. We may be able to offer alternative payment arrangements or assistance programs to help you avoid repossession and manage your loan.
Can I negotiate a settlement to avoid repossession altogether?
Not at the moment. Excluding any state specific exceptions after falling past due and becoming eligible for repossession, you’re required to make payments to bring the loan current to avoid repossession.
Will repossession affect my ability to lease or finance another vehicle in the future?
Yes, repossession can negatively impact your credit history and make it more challenging to qualify for financing or leasing of another vehicle in the future.
Can I reclaim personal belongings left in the repossessed vehicle?
Yes, you have the right to retrieve personal belongings from the repossessed vehicle. Having said that, the process for doing so varies depending on local laws and policies.
What happens if Best Egg sells my vehicle for less than the outstanding loan balance?
If the sale of the repossessed vehicle doesn’t cover the outstanding loan balance, you’ll be responsible for paying remaining amount, or deficiency balance.
Will my cosigner be held responsible for the loan if the vehicle is repossessed?
No. We don’t currently secure cosigners for vehicle equity loans. Our loans are considered individual loans and are the sole responsibility of the borrower.