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If you are unable to make your monthly payments on your car loan, then eventually it will lead to car repossession. This is when the company from which you have taken your loan will siege your car to make up for your late payments.
So, if you are lagging behind your loan payment and looking for ways to prevent repossession agents from taking your vehicle, then you will need to use car repossession loopholes to stop losing your car.
And in this article, we will go through all the ways you can do just that. Don’t worry, none of this is illegal, it only explores the loopholes in the car repossession laws and makes the most out of it.
- 10 Car Repossession Loopholes
- When Does Repossession Occur?
- Loopholes That You Can Use to Avoid Car Repossession
- Lock the Vehicle in an Enclosed Space or Garage
- Get Rid of the GPS Tracking Device on Your Vehicle
- Keep the Car in a Friend’s Garage or Your Neighbor’s Driveway
- Keep the Car Out of Your State
- Trade or Sell the Car
- Use a Gated Compound
- Take a Loan to Complete Your Car Payments
- Pay Your Car Payments Through Difficult & Longer Processing Methods
- Make a New Agreement to Extend the Loan Payments Time
- File Bankruptcy
- Consequences of Repossession
- Car Repossession Statistics
- Final Thoughts
10 Car Repossession Loopholes
1. Lock the Vehicle in an Enclosed Space or Garage
2. Get Rid of the GPS Tracking Device on Your Vehicle
3. Keep the Car in a Friend’s Garage or Your Neighbor’s Driveway
4. Keep the Car Out of State
5. Trade or Sell the Car
6. Use a Gated Compound
7. Take a Loan to Complete Your Car Payments
8. Pay Your Car Payments Through Difficult & Longer Processing Methods
9. Make a New Agreement to Extend the Loan Payments Time
10. File Bankruptcy
When Does Repossession Occur?
So, before we can get into the loopholes, do keep in mind that you can avoid repossession through loopholes only for a short period. Eventually, you will have to make your car payments; otherwise, it will be taken away, and the situation could get ugly.
Let’s understand when and how repossession occurs.
If You Can’t Pay Your Car Loan
Well, this is the most obvious answer, but there is more to the matter than can be seen through the naked eye.
The general rule of thumb regarding car repossessions is that if you are unable to make your loan payments in time your car will be reprocessed. But the time it takes to do this differs from state to state and the company you are taking the loan from.
Late Payments for 90 days
Generally, if you missed payments of your car loan for 90 days or so, then the order for car repossession is issued by the auto loan company. But there are also car repossession cases, where missing a single payment date has led to repossession professionals knocking at your door.
Therefore, the first suggestion that we can give you to prevent seeing a repossession agent is to go through the details of your loan properly.
Because if the repo man doesn’t follow the agreed details and tries to conduct a wrongful repossession, then the law is at your side. You can charge for illegally repossessed and get out of the issue quite easily.
But do keep in mind that this is a very rare case because repossession agencies hardly tend to do this sort of thing.
Also, understanding the details of the loan agreement and the repossession process of your car loan will help! It will allow you to understand when you can expect the repo agents to come to claim your car.
Loopholes That You Can Use to Avoid Car Repossession
Here is a list of car repossession loopholes that you can use to delay the car repossession process. Keep in mind that none of the following is a long-term solution and will lead you to serious trouble if you just keep using them over and over.
That being said, here are the loopholes that can protect you from car repossession for some time:
Lock the Vehicle in an Enclosed Space or Garage
An effective loophole is to put your vehicle in an area that is locked, such as a garage or any other private property, in a secure location.
Keeping your car in a private garage will ensure that the repo person can’t find your car unless he or she has a court order. And getting court orders for car repossession is quite difficult and requires a lot of time.
The repossession agency isn’t allowed to enter the garage or harm any of your property forcefully. Many have avoided repressions by doing this but do keep in mind that the location of your garage should be out in the open where anyone can see the car.
While the car repo agents keep looking for your vehicle, you can start paying off the loan and will no longer need to keep your car hidden in a closed garage.
That being said, if you are going through financial troubles, then it is a possibility that you might not have a garage or one that can store your car perfectly. In that case, you will have to look for other options than just hiding your car until you can pay up your auto loans.
Get Rid of the GPS Tracking Device on Your Vehicle
A GPS tracker is put on a car to track vehicles and their whereabouts. If you want to hide your car, then there is no alternative but to get rid of the vehicle’s GPS tracker. Without the help of a GPS tracker, it will be quite difficult for a repo man to find out the location of your car.
This is obviously not a permanent solution because there are other ways to find the location of a car. So, you will still have to hide your car on private property if you want to prevent car repossession chances.
Keep the Car in a Friend’s Garage or Your Neighbor’s Driveway
Another way you can hide your car is by not keeping it around your driveway or garage instead, seek the help of a friend or neighbor. You can keep the car at their disposal and use it from their residence. Another option is that – you can change the color of the vehicle to become less suspicious.
So, even if they are following you, they will be confused about whether it is the car that required repossession or another individual’s car.
If you are opting for this option, then we suggest that you hide your car. And don’t start using it because you will be relying on luck that the repo man gets confused and not the other way around.
Also, make sure that the place where you will be keeping the car is private property. Because in that case, you can use the repossession loophole of a repo agent not being able to search or invade private properties.
Trust is the key if you want to explore this loophole. Your friend or neighbor should also be aware of the fact that you want to avoid repossession, and that’s why you’re keeping your vehicle to them.
Keep the Car Out of Your State
If you want to avoid repossession and want to go to extreme levels, then it can be a good option to hide your car in another state instead of in the state where the loan was issued. Some prefer this as a long-term solution, but it actually isn’t necessarily secure.
Trade or Sell the Car
If you don’t want to go through all the troubles to hide your car from the repo man, then a simple solution can be to just sell the car or trade the car with another one. When you are trading, one thing that you need to keep in mind is that you should opt for a smaller or less expensive car.
This is because once you trade or sell the car, you still need to pay the balance owed to the repossession agency; otherwise, they will seek legal action against you. The same principle should also be concerned when you are selling the car.
And the best option for trading or selling will be to a dealership. They will pick the car up for a lower price than you have paid, which can seem like an issue. But finding buyers all by yourself can be a bit difficult because most people don’t want to associate themselves with a repossessed car.
Use a Gated Compound
If you don’t have a private garage, then you can try using a gated compound. It can be your personal property or one you are loaning to store goods; there is no way a repo agent can break into them.
While they are obliged to take your car if you can’t make your loan payments, there is no way they can damage any property or use physical force to do so. If they do so, then the law is with you, and you can issue a court order for wrongful damage to your property.
We recommend this option to hide your car from the repo man if you reside in a rural area, as there will be a low chance of getting it repossessed.
If you want to hide your car in an urban area, then keeping it in your garage will be the best option. It is because a repo man has the right to follow you around if you have missed payments for the car loans.
This isn’t available for everyone, but in certain situations, can be the decisive option that stops your car from repossession.
Take a Loan to Complete Your Car Payments
To pay off your past due payments, you can also opt for debt relief loans. The loan balance will be a bit low, but you will also get a lower interest rate from the credit bureau.
This way you will be able to make complete or partial payments of your outstanding loan. Afterward, you can pay off the remaining balance and complete your auto loan.
Pay Your Car Payments Through Difficult & Longer Processing Methods
Now if you want to avoid a mark of repossession on your credit history, then you can try to pay the monthly payments through difficult payment methods that take quite a long time to process.
For example, you can use crypto payments through a credit union or bank. This way, even if you are late and have passed your last due payment date, you will avoid repossession, as the process of converting cryptocurrency into cash can take a while.
If you do this, then if the repo man comes to get your vehicle repossessed, you can file for a deficiency judgment and point out that you are being wrongfully repossessed and harassed by the repo man and his agency.
Make a New Agreement to Extend the Loan Payments Time
This highly depends on the financial institution you have opted to take a loan from. You can appeal to extend your car payment type. A creditor will go through your credit reports and, in most cases, will grant you an extension.
The loan amount might come down a bit as the time is extended. But in some credit unions, the interest rate also increases, so it is better to see previous cases before you appeal for a loan extension to avoid repossession from the repo man.
Filing for bankruptcy will be the last resort for your to stop your car from repossession. We recommend you go for this option only if you have no other option and are severely in debt.
When you file for bankruptcy, a court order will be issued to liquidate most of your assets to pay off your debts. Certain properties will be excluded, like your vehicle or home. After liquidation, if you are still in debt, you will be discharged. So, hiring a good bankruptcy lawyer should be a top priority.
Now, if you choose to keep your car, then your loan will remain, and you will have to make your car payment. But as there won’t be any other debt, you should be able to pay that back.
To get the most out of the situation, hire a top-class bankruptcy attorney and share every detail possible. Remember you are protected by the attorney-client relationship, so there’s nothing to worry about.
Consequences of Repossession
Here are some of the effects that you will have to face when the repo man comes to repossess your car from you:
Bad Credit Report
First and foremost, if you can stop your car from repossession, it will negatively impact your credit report, and you will have to wait years to be fixed. You won’t be able to apply for mortgages, study loans, or any sort of legal loaning options.
Repossession Company Can Submit Lawsuits Against You
As mentioned earlier, using repossession loopholes will only save your car from the repo man for a certain period of time. If they find out where you are keeping your vehicle, then getting the car repossessed is a matter of time.
Because they can and will submit lawsuits if they get the hint on where you are hiding your car, and if they have a court order, then the personal property loophole won’t save your car from repossession.
Public Humiliation & Permanent Damage to Reputation
Getting your car repossessed will also tarnish your reputation at work and in social life. A repo man is allowed to enter and check in on your workplace if you have been delaying the monthly payments.
If the repo agency is able to repossess your car, then you will also be a subject of public humiliation. That’s why many don’t try to prevent their car from repossession and instead apply for voluntary repossession to at least save their reputation.
Car Repossession Statistics
Subprime auto repossessions are up 11% from 2020. Subprime loans are higher-cost loans written to riskier borrowers, so they typically default at higher rates than prime loans. However, the rate of vehicle repossession of prime borrowers has doubled since 2020.
Let’s take a look at some more car repossession statistics:
How Many Vehicles Are Repossessed in The USA 
- 2.2 million vehicles are repossessed every year (2022 statistics)
- 5,418 repossessions every day
Most Repossessed Vehicles of 2021-2022
- Ford F-150
- Chevy Silverado
- Honda Civic
- Honda Accord
- Toyota Camry
- Nissan Altima
- Toyota Corolla
- Honda CR-V
- Dodge Ram
It isn’t a pleasant experience when a repo man gets to repossess your car, and you can do nothing about it. The consequences of getting repossessed are quite extreme. But if you follow the mentioned car repossession loopholes, then you should be able to stop your car from repossession and work on paying back your loan payments.
Be careful, and best of luck!
Disclaimer: I am not a lawyer, and this should not be considered legal advice. You should seek appropriate counsel for your own situation. And please note that this post is directed toward readers in the United States. If you are conducting business outside the United States, I highly encourage you to find and understand your obligations regarding disclosure.