When Does Exeter Finance Repossess Cars? The Unvarnished Truth

Exeter Finance, like any auto lender, repossesses vehicles when borrowers default on their loan agreements. This typically occurs after repeated missed payments and a failure to rectify the situation after warnings and opportunities to catch up. While the exact timing can vary, Exeter generally begins the repossession process after a borrower is significantly behind on payments, usually 30 to 90 days delinquent. However, the specific terms outlined in your loan contract with Exeter Finance are the ultimate determinant of when they initiate repossession.

Understanding Repossession Triggers

Repossession is a lender’s legal recourse to recover the value of a loan when a borrower fails to meet their repayment obligations. It’s a harsh reality, but understanding the triggers can help you avoid this stressful situation.

Delinquency Thresholds

As mentioned earlier, the number of missed payments is the primary trigger. Exeter Finance, like most lenders, will likely send notices and warnings before initiating repossession. However, ignoring these notices or failing to communicate with Exeter about your financial difficulties significantly increases your risk. It is crucial to proactively reach out if you foresee or experience difficulty in making payments.

Breach of Contract

Beyond missed payments, other breaches of your loan contract can also lead to repossession. These might include:

• Failure to maintain auto insurance: Your loan agreement likely requires you to carry comprehensive and collision insurance. Lapses in coverage can be grounds for repossession.
• Unauthorized modifications to the vehicle: Making significant alterations to the vehicle without Exeter’s consent may violate the terms of your loan.
• Moving the vehicle out of state without notifying Exeter: This can be seen as an attempt to hide the asset.
• Using the vehicle for illegal activities: This would obviously violate the agreement and put you at risk.

The Repossession Process

Once Exeter decides to repossess your vehicle, they’ll typically hire a repossession agency. These agencies are authorized to seize the vehicle, often without prior notice. They can come to your home, workplace, or any public place where the vehicle is located. While they cannot breach the peace (e.g., physically assault you), they are generally permitted to take the vehicle without your consent.

After the repossession, Exeter will typically sell the vehicle at auction. The proceeds from the sale will be applied to your outstanding loan balance. However, you are still responsible for any deficiency balance – the difference between the sale price and the amount you still owe on the loan, plus repossession and sale expenses.

Proactive Steps to Avoid Repossession

The best way to avoid repossession is to communicate with Exeter Finance as soon as you anticipate or experience financial difficulties. Here are some options you might explore:

• Loan Modification: Exeter might be willing to temporarily modify your loan terms, such as reducing your monthly payments or extending the loan term.
• Payment Deferral: In some cases, you might be able to defer one or two payments to give you time to catch up.
• Voluntary Surrender: If you know you cannot afford the vehicle, voluntarily surrendering it to Exeter might be a better option than waiting for repossession. This can minimize repossession fees and potentially reduce the deficiency balance.
• Refinancing: Explore refinancing your auto loan with another lender. A lower interest rate or longer loan term could make your payments more manageable.

Frequently Asked Questions (FAQs) About Exeter Finance Repossession

1. Does Exeter Finance provide a warning before repossessing my car?

While not always legally required, Exeter Finance usually sends notices of default before initiating repossession. These notices typically outline the amount you are behind on payments and provide a deadline to catch up. Ignoring these warnings significantly increases your risk of repossession.

2. Can Exeter Finance repossess my car without a court order?

In most states, Exeter Finance does not need a court order to repossess your car as long as they can do so without “breaching the peace.” This means they cannot use physical force or threats to take the vehicle.

3. What constitutes a “breach of the peace” during repossession?

A breach of the peace generally involves any action that disturbs public order or tranquility. This includes physical confrontations, threats, or damaging property to gain access to the vehicle. If a repossession agent breaches the peace, you may have legal recourse.

4. Can Exeter Finance repossess my car if I am only a few days late on a payment?

While technically they could, it’s highly unlikely. Repossession is usually reserved for borrowers who are significantly delinquent – typically 30 to 90 days or more. However, even a few days late can trigger late fees and negative credit reporting.

5. What happens to my personal belongings inside the repossessed car?

Exeter Finance is generally required to allow you to retrieve your personal belongings from the repossessed vehicle. Contact them promptly to arrange a time to collect your belongings. They are not responsible for any items that are not claimed.

6. Am I still responsible for the car loan after repossession?

Yes, you are likely still responsible for the deficiency balance, which is the difference between the sale price of the repossessed vehicle at auction and the amount you still owe on the loan, plus any repossession and sale expenses.

7. Can I get my car back after it has been repossessed by Exeter Finance?

You might be able to redeem your vehicle by paying off the entire outstanding loan balance, plus repossession and storage fees. However, you usually have a limited time to do so. Contact Exeter Finance immediately to inquire about redemption options.

8. How does repossession affect my credit score?

Repossession has a severe negative impact on your credit score. It will be reported as a repossession on your credit report and can remain there for up to seven years. This can make it difficult to obtain credit in the future. Additionally, any unpaid deficiency balance may also be reported negatively.

9. Can I negotiate with Exeter Finance to avoid repossession?

Absolutely! Communication is key. Contact Exeter Finance as soon as you anticipate or experience financial difficulties. They might be willing to work with you on a loan modification, payment deferral, or other arrangements to help you avoid repossession.

10. What are my legal rights if Exeter Finance wrongfully repossesses my car?

If you believe Exeter Finance wrongfully repossessed your car (e.g., breached the peace, repossessed without proper notice), you may have legal recourse. Consult with an attorney specializing in consumer law or auto repossession to understand your rights and options.

11. What is the “right of reinstatement” regarding auto loans and repossession?

Some states have laws that provide a “right of reinstatement,” allowing borrowers to catch up on missed payments and reinstate the original loan agreement after repossession. Check your state’s laws to see if this right applies to you. However, reinstatement typically requires paying all past due amounts, late fees, and repossession costs.

12. Where can I find more information about auto repossession laws in my state?

You can find information about auto repossession laws in your state by consulting your state’s attorney general’s office, consumer protection agency, or by searching online for “[your state] auto repossession laws.” Seeking legal advice from a qualified attorney is always recommended for personalized guidance.