What is Repossession
Generally referred to as "repo" for cards is a "self-help" type of act in which the party is entitled to own ownership of the property in question, takes the property back from the party entitled to hold without invoking court proceedings.
Repossessed Cars in UK
Once a car is recovered, it is usually sold through an auction. It is common for cars to be sold in auctions for a fraction of their resale value. If your car sells for less than your loan balance, you will owe the difference to the lender, which is called a "deficiency balance."
If you are behind on your car payments and have been for a while, there is a good chance that your creditor will try to recover your vehicle. ... If you are on the verge of recovery, your first instinct could be to try to hide your car from the repo.
If you want to recover your car after recovery, you have several options:
Redeem the car or restore the loan (if allowed in your state or by contract). ...
Wait until the sale and try bidding for the car at auction.
Negotiate with the creditor to try to recover the car.
Since, in most cases, you can sell the car for more than the lender can afford, you probably do not have to repay as much as if you let the vehicle get repossessed. If you plan to obtain another car, you may be able to transfer the remaining balance to the new car loan. ... This is called a voluntary recovery.
