Can You Stop a Repossession After Missing a Payment?

Yes, you can—and you should act immediately.

Missing a car payment doesn't mean your vehicle is gone for good. While it puts you at risk for repossession, most lenders prefer to work with borrowers rather than go through the expensive process of taking and selling your car.

The key is to act fast. The sooner you contact your lender and explore your options, the better your chances of keeping your vehicle. In this guide, we'll show you exactly what to do in the first 72 hours after missing a payment, how to talk to your lender, and what hardship programs might be available to you.

Immediate Actions (First 72 Hours)

Time is your most valuable asset right now. Here's what to do in the first three days after missing a payment:

1. Review Your Loan Contract

Pull out your loan agreement and look for:

• Grace period: How many days do you have before a late fee is charged?
• Default terms: What happens if you don't pay? When can they repossess?
• Acceleration clause: Does missing one payment make the entire loan due immediately?

Understanding your contract helps you know exactly where you stand.

2. Check Your Budget

Look at your income and expenses to determine:

• Can you make a partial payment now?
• Can you catch up within the next 30 days?
• Do you need a longer-term solution like a loan modification?

Be honest with yourself. If you can scrape together even a partial payment, it shows the lender you're trying.

3. Call Your Lender Immediately

Don't wait for them to call you. Contact your lender's customer service or collections department as soon as possible. The earlier you reach out, the more willing they are to help.

Pro tip: Call during business hours (9 AM – 5 PM) when senior staff are available to authorize flexible solutions.

What to Say to Your Lender (Short Script)

Many people avoid calling their lender because they don't know what to say or fear being judged. Here's a simple script you can adapt:

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You: "Hi, my name is [Your Name], and my account number is [Account Number]. I missed my payment on [Date] due to [brief reason: job loss, medical issue, etc.]. I want to keep my car and stay current on my loan. Can you help me explore my options?"

Listen to their response. Then ask:

You: "Do you offer any hardship programs, payment deferrals, or loan modifications? I'm committed to making this work."

If they offer a plan:

You: "Thank you. Can you send me the details in writing—either by email or mail—so I have a record of our agreement?"

If they say no:

You: "I understand. Is there a supervisor or hardship specialist I can speak with?"

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This approach is respectful, clear, and shows you're serious about resolving the situation. For more details on stopping repossession, see our complete guide on how to stop a car repossession.

Being proactive with your lender is the first step to protecting your car

Hardship & Forbearance Options

Many lenders offer programs designed to help borrowers who are temporarily struggling. Here are the most common options:

Payment Deferment

A deferment allows you to skip one or two payments and add them to the end of your loan. This is ideal if you're facing a short-term financial setback (like medical bills or a temporary layoff).

• Pros: No immediate payment required; buys you time
• Cons: Your loan term extends; you'll pay more interest overall

Loan Modification

A loan modification restructures your loan to make payments more affordable. This might include:

• Lowering your interest rate

• Extending your loan term (e.g., 60 months to 72 months)

• Reducing your monthly payment amount

• Pros: Long-term relief; easier to stay current

• Cons: May require a credit check; not all lenders offer this

Forbearance Agreement

A forbearance temporarily reduces or suspends your payments for a set period (usually 3–6 months). After the forbearance period, you'll need to resume payments and catch up on what you missed.

• Pros: Immediate relief if you've lost income
• Cons: Payments still accrue; you'll owe more later

Partial Payment Plan

If you can't pay the full amount, ask if the lender will accept a partial payment now and let you catch up over the next few months. For example:

• Pay $200 now (instead of $400)
• Add $50 extra to the next four payments

Not all lenders offer this, but it's worth asking.

Warning Signs Repo Is Next

Even if you've contacted your lender, you should watch for signs that repossession is imminent:

• Increased collection calls: Multiple calls per day, especially from different numbers
• GPS tracking notifications: Some lenders use GPS to track high-risk vehicles
• Final demand letters: Official notices stating repossession is the next step
• Threats in writing: Any correspondence mentioning "immediate action" or "recovery"

If you see these signs, you're running out of time. Consider more aggressive options like selling the car yourself, refinancing with another lender, or consulting a bankruptcy attorney.

Learn more about your rights when your car is repossessed to ensure you're protected throughout the process.

Pay attention to formal notices—they're your last warning

What If You Can't Catch Up?

If you've explored all options and still can't afford your car payment, here are alternatives to forced repossession:

Voluntary Surrender

Instead of waiting for the repo truck, you can return the car to the lender yourself. This is called a voluntary surrender or "voluntary repossession."

• Pros: Avoids repo fees; slightly less damaging to credit
• Cons: Still counts as a repossession on your credit report; you may owe a deficiency balance

Sell the Car Yourself

If your car is worth more than you owe, you can sell it privately, pay off the loan, and pocket the difference. Even if you're "upside down" (owe more than it's worth), you might be able to negotiate with the lender to accept less.

Refinance with Another Lender

If your credit isn't too damaged yet, shop around for refinancing. Credit unions and online lenders sometimes offer better rates than your current lender. A lower monthly payment could make your loan affordable again.

Bottom Line

Missing one car payment doesn't have to mean losing your vehicle. By acting quickly, communicating openly with your lender, and exploring hardship programs, you can often stop or delay repossession.

The most important thing is to not ignore the problem. Lenders are much more willing to help if you reach out before they start the repossession process.

For more strategies and a complete timeline, read how to stop a car repossession.

👉 Next step: Use our Repo Countdown Tool or Generate a Hardship Letter.

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