Getting You Car Back After Repossession in Ontario: 2024 Guide

If your car has been repossessed, you may feel worried and unsure about what to do next. Repossession happens when you miss car payments, and the lender takes back the vehicle.

 

But don’t panic—there are ways to get your car back after repossession in Ontario. This article will help you understand the process and how you can get your car back from the dealership.

 

 

What Is Car Repossession?

Repossession occurs when you don’t make your agreed payments on a car loan, and the lender reclaims the car. In Ontario, lenders have the right to repossess your vehicle without notice if you’ve missed payments. This can happen if you’re leasing a car or financing it through a dealership.

 

Once your car is repossessed, the lender or dealership can sell it to recover the money you owe. However, this doesn’t mean you’ve lost your car for good. You have options to get your car back after repossession, but it’s important to act quickly.

 

How to Get Your Car Back After Repossession

• 1. Contact Your Lender Immediately After repossession, your first step should be to contact your lender or the dealership. Ask them about the amount you owe and the steps to get your car back. This may include paying overdue payments, late fees, and possibly other charges related to the repossession.

 

• 2. Pay Off the Balance or Settle the Debt To get your car back after repossession, you may need to pay off the total balance of the loan, including any additional fees. Some lenders may allow you to bring your loan current by paying just the overdue amounts and fees, instead of the full loan balance. This option is called “reinstating” your loan.

 

• 3. Negotiate With the Lender If paying the full balance is difficult, you can try negotiating with your lender. Sometimes, they may offer a payment plan or a settlement that helps you get your car back after repossession. Be transparent about your financial situation and work together on a solution.

 

• 4. Attend the Auction In some cases, if your car is sold at auction, you might still have a chance to buy it back. This isn’t always possible, but it’s worth asking your lender if this is an option. Keep in mind, though, that you’ll need the money to repurchase the vehicle.

 

• 5. Consider Refinancing If getting your car back after repossession seems financially overwhelming, consider refinancing your car loan. A new loan with different terms might help make your payments more manageable, and some dealerships in Ontario offer refinancing options. This could give you a second chance to keep your vehicle.

 

Avoiding Future Repossession

Getting your car back after repossession is possible, but it’s essential to avoid future issues by staying on top of payments. Here are some tips to prevent repossession in the future:

 

• Set Up Automatic Payments: Automating your payments ensures you don’t miss any. Check with your bank or lender about setting up direct payments to avoid any missed deadlines.

 

• Communicate With Your Lender: If you think you’ll miss a payment, talk to your lender as soon as possible. Some lenders may allow you to skip a payment or extend your due date without penalty.

 

• Refinance Your Loan: If your monthly payments are too high, refinancing could lower them, making it easier to stay on track.

 

• Budget Carefully: Always ensure that your car loan fits within your budget. This prevents overextension and reduces the risk of missing payments.

 

Can a Dealership Help?

Dealerships can sometimes assist with getting your car back after repossession, especially if they were involved in financing the vehicle. Contact the dealership to see if they can help you with refinancing or setting up a repayment plan.

 

Dealerships in Ontario may also offer advice on dealing with lenders or auction options if your car is at risk of being sold.

 

 

If you’re struggling with car payments, don’t wait until repossession happens—talk to your lender or dealership about your options. And remember, if repossession does occur, there are steps you can take to get back on the road.