Car repossession laws by state: what to look up and where

Most repossession rules come from state law: each state's version of Article 9 of the Uniform Commercial Code, plus its own consumer and motor vehicle laws. This page does not list the states. It lists the questions whose answers differ, so you can ask the right ones of your state's attorney general, a legal aid office, or your loan contract.

The questions that change by state

• Notice before repossession. In many states a lender can repossess without warning. Others require a notice of default and a chance to catch up before the car can be taken.
• Right to cure or reinstate. Some states let you get the car back after repossession by paying only what is overdue plus costs, within a set time. Where there is no such right, you can still redeem by paying the full balance.
• What counts as a breach of the peace. The general idea is the same everywhere; how courts apply it to a car in a driveway, a car in a parking garage, or a repossession you objected to differs.
• Deficiency limits. Some states limit or bar a deficiency claim on smaller loans, or when the lender did not follow the notice rules.
• Fees. Whether storage and repossession fees are capped, and what is reasonable.

The rules that apply everywhere

The Uniform Commercial Code, adopted in every state, gives you these: the lender may not breach the peace, must notify you before it sells the car, must sell it in a commercially reasonable way, and must let you redeem it before the sale by paying the full amount owed plus reasonable costs. See what happens after repossession for how those play out.

Before it happens

If you can see a missed payment coming, call the lender before it happens. The CFPB suggests asking about a deferment, a modified payment plan, or other options; get any agreement in writing.

Where to look up your state

Your state attorney general's consumer protection office, the state's legal aid organizations, and the loan contract itself (look for sections on default, repossession and notices). If you have been threatened with repossession by a debt collector rather than the lender, the collector rules apply too.