Vehicle repossession
Also known as: Car repossession · Repo · Self-help repossession · Auto repossession
The lender taking back a financed or leased vehicle after default, usually without going to court, as long as it does so without a breach of the peace.
Legal basis
UCC §9-609
Under UCC §9-609, after default a secured party may take possession of the collateral either through the courts or without judicial process, if it proceeds without breach of the peace. That is why most repossessions happen at night or from a driveway: confrontation, breaking into a locked garage or taking the car over the borrower's objection can cross the line, and state law and courts draw it differently.
Taking the car is only the first step. Before selling it, the lender must send the borrower an authenticated notification of disposition (§9-611), the sale must be commercially reasonable (§9-610), and the borrower can redeem the vehicle by paying what is owed before disposition (§9-623). Servicemembers get extra protection: for a contract entered into before military service, the Servicemembers Civil Relief Act bars repossession without a court order.
The hard part is often finding the car. By the time a loan is deep in default, the vehicle may be in another state, sold or parted out. A tracked vehicle, a clear pattern of where it spends its nights, and an early warning when usage changes make recovery a scheduled task instead of a search.
Frequently asked questions
Can a car be repossessed without notice?
Under the UCC, a lender can repossess after default without going to court, as long as there is no breach of the peace; your contract and state law may add notice requirements. After repossession, the lender must send notice before selling the vehicle, and you can redeem it by paying what is owed before the sale.
Can a servicemember's car be repossessed?
If the servicemember paid a deposit or installment before entering military service, the Servicemembers Civil Relief Act prohibits repossessing the vehicle for a breach without a court order.