How to Get Your Car Back After Repossession in Canada

Repossession is a process of last resort for any creditor. It takes a long time, requires a lot of paperwork, and usually, action from the courts. However, it does happen and is a risk for anyone who cannot make loan payments.

 

So, how can you get your car back after repossession? Allow us to explain.

 

It's Possible & You Have Options

Let’s just clear one thing up from the off. Recovering your car after it has been involuntarily repossessed is possible, but it isn’t cheap and isn’t always easy.

 

It is possible though, which is all that matters.

 

Repossession usually happens after continual defaults on an auto loan. You will have passed the delinquency stage and gone into default. This is when the lender will usually take action.

 

Depending on the lender, they will keep sending letters or send bailiffs around to collect the car. Either way, the car is gone and you want to get it back.

 

3 Options for Getting Your Car Back

Reinstate the auto loan: Depending on the circumstances, you can work with the lender to bring the loan up to date and request they return your car. That means paying all outstanding payments and any fees levied by the lender.

 

Not all lenders will do this as they have gone to significant trouble already but some do.

 

If you have the cash to make the payments, assure the lender it won’t happen again and pay their expenses, they may return your car.

 

Redeem the auto loan: Another option is to redeem, or completely pay off the loan. Again, this depends on the lender wanting to play ball, but most will if it means having the loan settled in full.

 

It does require having the cash around to settle the loan or being able to access another form of borrowing to settle the loan though.

 

Remember, if you defaulted on your auto loan, the missed payments will be noted on your credit report and your score will have taken a big hit. That means finding another loan may be difficult and/or expensive!

 

Buy the car back at auction: Most repossessions will be sent to auction to be sold and recoup some of the money. Different lenders use different auction houses, some will be public and some will be auto trade only.

 

Ask the lender if they will disclose what auction house they use. Some will tell, others won’t. If yours tells, keep an eye on upcoming auctions to try to spot your car.

 

Some auction houses show upcoming lots online while others still use lot sheets. You’ll have to figure out which is which and monitor accordingly.

 

It’s a long shot and requires vigilance but if you really want your car back, this is the only other way to do it.

 

What Happens After the Car is Repossessed?

If you have personal items in the car, the repossession company should give you the opportunity to remove them. If they don’t, there should be provision for you to remove your personal items from where the car is stored.

 

Typically, a lender would only repossess a car as a last resort. After several failed attempts to restart the payment process, the lender will need to take legal action to begin the repossession process.

 

Even once the car has been repossessed, that may not be the end of it. If they don’t get the full loan value for the car, there may still be more to pay.

 

For example, if $8,000 is owed on the car but it sells for only $6,000 at auction, you may still be liable for that outstanding $2,000.

 

Nobody wants to have to get a car back from repossession. It’s a tough time financially and emotionally and we recommend doing everything you can to avoid it!

 

Thanks for reading. If you have any more questions, please don't hesitate to contact us here.