Car Repossession Loopholes: What You Need to Know

There are many reasons to be worried about the possibility of repossession of your vehicle when you’re in arrears with the payments for your vehicle. You might think that you have nothing to do to prevent the vehicle from being taken from you.

But, this isn’t always the scenario! There are some loopholes for repossession of cars you can take advantage of to keep your car from being taken away.

This article will cover these loopholes for repossessions of vehicles and ways you can take advantage of these loopholes. Don’t fret it’s not necessary to be without your car due to the fact that you’re late on your payments!

Seven Car Repossession Loopholes to avoid Repossession

Here are seven of the most well-known loopholes for repossessions of vehicles that you can explore to purchase time or to avoid repossession completely:

1. Keep the car in a locked Garage

If you’re concerned about the possibility of car repossession One of the most effective ways to avoid repossession is to keep the vehicle in a garage that is locked. This will make it challenging for the repossession person to locate and seize your car.

The repo person is not legally authorized to enter your garage to steal the vehicle. If you’re able to keep the car in a safe place and secure it, you might be able to avoid repossession completely.

However, this isn’t always the case. If you do not have a garage, or your vehicle is too big for garages, you’ll have to find a new alternative.

If you do own garage this is an ideal option to keep your car free from repossession.

2. Place your Car inside a Chained Gated Compound

Another way to avoid repossession is to put the car in a gated or chained compound. This makes it difficult for repo men to reach the car as well as discourage thieves.

The repo guy isn’t able to cause damage or breakage to any of your property to access the vehicle. This includes gates, fences and locks.

This isn’t an option for you if you live in an urban region. However, if you reside in a rural location or have access to a storage facility it is a good option to ensure your vehicle is secure.

It’s not an alternative for all. However, if you’re able to keep your vehicle in a safe area, it’s worth a look.

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3. Remove the GPS Tracker from your car

If your car is equipped with an GPS tracker, it is possible to erase it in order to block your car from being monitored. This can make it difficult for the repo person to locate your car.

It’s not the case that every car comes with an GPS tracker, but a lot of modern models have. If your vehicle has the tracker, it’s placed in the glove box or underneath the seats.

If you’re not sure how to erase the tracker, check out the owner’s manual, or a workshop.

Eliminating the GPS tracker won’t allow the repo person to locate your vehicle at all. You must still hide it in a safe place and not place it in your driveway.

It’s not a 100% sure-fire method however it’s worth a try in case you’re concerned about your repossession of your vehicle.

4. You can lend your Car To Your Neighbor

If you’re worried about repossession of your car You can loan your car to a neighbor. If the repo guy comes, they won’t locate the vehicle since the car is parked elsewhere.

It is preferential that your neighbor have a garage that they can keep their car secure. If there isn’t garages, make sure they park their vehicle in a safe location.

It’s not a long-term solution however it could buy some time if you’re worried about repossession of your vehicle.

Of course, you’ll want to make this decision only when are confident in your neighbor. It is not a good idea to loan your vehicle to someone who could harm it or not return it.

If you’re in excellent relations with your neighbors, and you’re worried about the possibility of repossession of your vehicle it’s a great alternative to think about.

Naturally, you’ll want to ensure you have a neighbor who is in agreement with the arrangement.

5. The Car can be loaned to a Friend in another State

If you know someone who lives outside of the state, you may be able to offer them the car and take their car. In this way that, no matter if the repo person arrives but they’ll be unable to locate the car since it’s in a different state.

It’s not the best solution for long-term however, it will give you time to pay off your loan.

It’s not as easy for the repo person to take possession of a vehicle that is not in the state however they’ll be sure that they take possession of your vehicle when they locate it.

Of course you shouldn’t do this only if both of you are both trustworthy one another.

6. Exchange the car for one that is less expensive. One

If you’re having trouble pay your car bills it’s possible to trade your car for a lower one. This will result in lower monthly car payments, and you don’t have to worry about your vehicle being taken.

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The remaining amount is to be utilized to pay off the car loan. In this way, you’ll own the vehicle, and won’t need to worry about repossession of your car.

It is possible to trade your vehicle through a dealer or privately sell it. You’ll receive a lower price for your car when you trade it in and you don’t have to think about selling it on your own.

If you decide to sell the vehicle privately, you’ll earn an increase in the price of the car , but you’ll have come up with a buyer by yourself.

Whatever the case it’s an excellent alternative to think about in case you’re having trouble making your monthly car payment.

7. Sell the car

If you’re having trouble pay your car loan it’s possible to trade in the vehicle. You’re likely to get the money you require to pay off the car loan and you won’t need to worry about repossession of your vehicle.

You’ll be able to avoid problems with repo and the creditors by selling your vehicle and repaying the car loan.

Also, you’ll be able to avoid any additional fees associated when you hide your vehicle from repossessions by paying the debt off.

What’s the best method to Prevent Getting Your Car Repossessed?

The best method to avoid repossession of your vehicle is to pay your payments on time or cooperate with your lender. If you’re experiencing an economic downturn that’s short-term and the lender will usually allow an unpaid month.

If you’re struggling to pay the car payment You can conceal your car or swap it to get a lower-priced vehicle, which will allow you to pay off a portion of the debts.

In the end, if you’re struggling to pay your car bills then you ought to consider selling your vehicle. In this way, you’ll receive the cash needed to pay off the loan and you won’t need to worry about repossession of your car.

When can your Car be repossessed?

If you fail to pay an installment loan, many states allow lenders to take your vehicle. The term “default” is different depending on the terms of the loan but can be as little as 30 days following the your due date.

In the majority of cases repossession of cars occurs when you have missed several payments to your car or you stop making payments completely.

If the lender decides to repossess your vehicle, they’ll likely auction it off in an auction. The profits from the sale will go towards your vehicle loan.

If the sale does not cover the total amount of your car loan, you’ll be responsible for the rest of the amount.

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What is the Repo Man’s Permissible Activities?

Hiring your vehicle from the repo man can be difficult, and isn’t worthy of the effort in the majority of instances. But, if you have to cover your vehicle it is important to be aware about the things that the repo person is permitted to do.

  • The repo person will do anything to retrieve the car in the event that they don’t violate the law, damage your property or make threats against you.
  • The repo man may come to your property and steal the vehicle without permission.
  • The repo person can access your garage and take possession of the vehicle, so long as they don’t damage any property.
  • They are permitted to take possession of cars that are located in private property, for example, the driveway of your neighbor.
  • It is not permissible to cut fences and gates to access the vehicle, however the law varies between states.
  • They are allowed to observe your everyday routine in order to discover more about it.
  • They can take your vehicle from any public place such as the supermarket or the parking lot at your workplace.
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If the repo person is found to have violated rules, you may take action against them.

Even if you conceal your car from the repo guy the creditor could initiate legal proceedings and obtain an order from the court requiring you to give it up. In the end it’s usually no good of hiding your vehicle.


Can I Protect My Car from Repossession?

It’s not easy to conceal your vehicle from the repo guy and is usually too risky. Hiring your vehicle is only a temporary solution, but you can do it to secure your vehicle in garages, for instance.

Do I have to go to jail to protect My Car from Repossession?

You can’t be in jail for hiding your vehicle from repossession. If you fail to adhere to a court-issued or order to surrender the vehicle, you could be imprisoned for violation of court.


Repossession of your car is a serious problem that requires you to understand your rights and choices.

If you’re having trouble making auto payments, think about talking to your lender , or even selling your vehicle.

The process of hiding your vehicle from repo guy is a complex process and usually not worth the risk.

If you keep your car hidden the repo guy can do what they need to in order to retrieve the vehicle so long they don’t violate any law, take your property or threat you.

If the repo person violates laws, then you may take action against them.

Are you able to offer any suggestions to avoid repossession of your car? Tell us about it in the comments section below!


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