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My auto finance company repossessed my vehicle. How should I proceed to rectify the situation?

My auto finance company repossessed my vehicle. I want to prevent the repossession from hitting my credit report or minimize its effect on my future ...

My auto finance company repossessed my vehicle. I want to prevent the repossession from hitting my credit report or minimize its effect on my future financial outlook. How should I proceed to rectify the situation? I am not married to getting the vehicle back.

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Honestly, I do not know of any foolproof way to prevent this repossession from appearing on your credit report. In fact, I would be very surprised if this account does not appear on your credit report. You may be able to mitigate the impact of this repossession by contacting the finance company and offering to repay the remaining balance on the loan in return for their not reporting the account to the credit bureaus. The company will probably ask you to bring the loan current, take the car back, and stay current on the loan going forward. Even if you do those things, I still think it more likely than not that the lender will report the repo to the credit bureaus.

You can expect this account to remain on your credit report for seven years from the date of the repossession, so you will probably be dealing with credit problems for some time to come. You may be able to balance the negative impact of the repossession by keeping all of your other accounts current. However, even if all of your other accounts have a perfect payment history, a repossession would still hurt your credit score. Luckily, the more time that passes from the date of the repossession, the less the repo will affect your credit score, so as time passes, you should see your credit score improve.

For more information about credit, credit scoring, and credit reports, I encourage you to visit the Credit Resources page, available at

I hope this information helps you Find. Learn. Save.



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  • B
    Aug, 2010
    I recently came across your post and agree with the points here. Thank you for providing this service to consumers.
  • BA
    Nov, 2009
    First, call the creditor and explain your situation. Explain that you want to make payments but cannot. Scape some money together to pay them something to demonstrate your good faith. I am surprised you still have the vehicle, and it is a testament to your creditor's patience that you still possess it. Second, work on retraining yourself so that you can find work in an industry with fewer layoffs. Third, focus on your household budget to contain your expenses. When you dig yourself out of this hole, remind yourself to never finance a vehicle purchase again so that if you are laid off you do not have to worry about your vehicle being repossessed.
  • D
    Nov, 2009
    I filed Ch.7 in 2004 for liabilities that was getting out of hand due to laid off of work. I purchased a vehicle in 2006. I am now laid off again and can't afford it anymore. Currently, I am 5 months behind on my payments. I don't want to give the vehicle up, would like to keep it. It is my only transportation that i have at the time. I am trying my best not to file bankruptcy again, don't want another 7 years of negatively on my credit report. What suggestion do you have in order to keep my car?
  • BA
    Oct, 2009
    I recommend you review the message thread Latoya and I are having in "Auto Loan Default." At present, Latoya is well into her negotiations with her finance company regarding a vehicle she can no longer afford. I suggest you read the thread to see how Latoya developed a plan and through persistence is working towards a resolution. At present, I do not know how successful she will be -- no one wins in a repossession except for the repo-man -- but I commend Latoya for dealing with a tough situation actively. I recommend you try to work through the situation in the same manner.
  • DA
    Oct, 2009
    I already had a repo about 7 years ago. Now I am financing another vehicle, but because of my credit score, my interest rate was really high causing my monthly payments to exceed 600.00. I was able to pay for it before, but now money is very tight and can no longer afford the payments. I tried to get it refinanced but nobody will help me. I want to avoid another repo but the way things are looking, I may have no choice. Do you know of any other options that can enable me to avoid the situation?