![]() One option if you're struggling to pay your car payment is to try and sell your car for cash to pay off the loan, but that won't work if you owe more than the car is worth. In practice, however, most lenders are willing to give your car back if you can at least catch up with your late payments (and, of course, even up with the repo company as well). Generally, the law only compels lenders to release your car if you pay off the loan plus any towing and storage charges that have accrued. What if it's too late and your car has already been repoed? Many states have laws on the books about how long and under what conditions lenders must allow you the opportunity to get your vehicle back, but the terms aren't exactly favorable, especially if you're in the kind of financial situation that led to repo in the first place. How to get your car out of repo - and what happens if you don't They can, however, follow you to work, for example, or the grocery store, and wait until you leave your car unattended. That means its representatives can't break into a locked garage, through a locked gate or otherwise use physical force against you or your property to take possession of your vehicle. Long COVID Symptoms May Depend on the Variant You Contracted.Free COVID Antiviral Pills: New Official Website Helps Find Them. ![]() I'm Eligible for a Second COVID Vaccine Booster.You can view a list of every state's specific automobile repossession laws here, but generally speaking, your lending institution (or a company it hires) has the right to come onto your property and take the car so long as no one commits a "breach of the peace." In pretty much every instance your bank does not need a court order to attempt to repossess your car. However, as most US cities are far along in the process of reopening and orders shuttering nonessential businesses have mostly been lifted, you can probably bet that repo companies will be up and running as soon as they can be. The Association of Credit and Collection Professionals, a lobbying group for debt collectors, has argued that debt collection is an essential service, but lawmakers have yet to chime in. The auto repossession industry never quite figured out whether repo companies, many of which laid off dozens of employees early on in the pandemic, were even allowed to operate in areas under strict shelter-in-place orders. Andrew Hoyle/CNET Are car repossession companies even open right now? If you quit paying your car payment, eventually a vehicle recovery service will come tow your car. Generally speaking, banks would rather work with you and retain you as a customer than leave you stranded without a vehicle. Just be honest and forthcoming about your situation and realistic about how much time you'll need to get back on your feet. That said, you can probably handle this on your own. If your bank doesn't have it set up that easy and you have no idea where to begin, the legal services website DoNotPay has a chatbot that can help you draft a letter to your lender. Fill out a form, possibly attach some documentation (termination letter, layoff notice, etc.), send it off to your lender and wait for an approval confirmation. Most lenders' programs have been streamlined to be pretty simple to apply for. How to talk to your bank about your options But on the plus side, your missed payments will not show up as negative marks on your credit report, so your credit score shouldn't take a hit. On the downside, interest will continue to accrue during the months you skip your payment, so you'll end up paying more for your vehicle in the long run. CNET sister site Roadshow also details relief programs for existing loans as well as incentive programs for new cars with a number of auto manufacturers.A broader list of all state coronavirus executive orders and laws is available here, compiled by the digital encyclopedia of American politics and elections website Ballotpedia.The National Consumer Law Center, a legal services and consumer advocacy nonprofit, has an updated list of the various coronavirus-related protections against repossession passed by various states here.The most exhaustive list we came across of banks and other financial institutions - big and small - who have publicly announced coronavirus relief programs is from the American Bankers Association, a banking trade group.Do you lease your vehicle? Edmunds has a separate list for you as well.If you financed your car through the dealer, car review and pricing guide publisher Edmunds has compiled a list of all the major manufacturers and their coronavirus relief programs here.
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