Repossession Laws in South Carolina
Upsolve is a nonprofit that helps you eliminate your debt with our free bankruptcy filing tool. Think TurboTax for bankruptcy. You could be debt-free in as little as 4 months. Featured in Forbes 4x and funded by institutions like Harvard University — so we’ll never ask you for a credit card. See if you qualify
Repossession is the process of taking back a car after the owner defaults on their auto loan. Each state has different laws and regulations that dictate every step of the repossession process from start to finish. This page will provide an overview of South Carolina's Repossession Laws and what you should know if you've fallen behind on car payments.
Written by Upsolve Team.
Updated August 27, 2025
How Many Payments Can I Miss Without Risking a Repossession in South Carolina?
In South Carolina, lenders generally can’t repossess your car until your loan is at least 30 days in default.
Your loan contract will spell out exactly what counts as a default. In some cases, that could be as soon as one day after a missed payment. Default can also happen if you let your required car insurance lapse or break other terms of your agreement.
The lender can take back your car if you stop making payments because the car is tied to the loan. Repossession is the process they use to get the car back and try to cover what you still owe.
Will I Be Notified Before the Repossession? How?
In South Carolina, most lenders have to give you a written Notice of Right to Cure before they can repossess your car.
This notice can be delivered in person or by mail, but it can’t be sent until you’ve been in default for at least 10 days. Once you get the notice, you’ll have 20 days to catch up on your missed payments. If you don’t, the lender can move forward with repossession.
There are a couple of exceptions to this rule:
If your loan is through a credit union, the lender doesn’t have to send a notice before repossessing.
You only get this notice once per loan. If you default again later, the lender can repossess without giving you another warning.
How Can I Prevent a Repossession?
The best way to prevent repossession is not to fall behind on payments. So if you're struggling to make your car loan payment, contact your lender and see if they can work with you. Many lenders offer financial hardship options.
You can do this during the 20-day deadline to catch up on your payments after you receive notice of repossession, but it’s even better to do it before then. Remember that you only have a right to receive a notice of default if your creditor isn't a credit union and you haven't used it before on the same loan.
If the lender fails to send the required notice, you may be able to use this to get your repossessed car back. This could also be a defense if the lender tries to get a court order for repossession.
What Can Repo Companies in South Carolina Do?
In South Carolina, repo companies can take your car if you’re in default, but they aren’t allowed to “breach the peace” while doing it. This means they can’t break into your closed garage or go behind a locked gate to get your vehicle.
They can repossess your car from many other places, including your driveway, a workplace parking lot, or even a shopping center. If you keep your car in a locked garage, they would need to get a court order requiring you to turn it over.
It’s also considered a breach of the peace if you catch the repo agent in the act and tell them to stop, but they continue anyway. While you’re allowed to object, you can’t physically stop them or use threats—that would put you in violation of the law. If the repo company does breach the peace, you may be able to use that fact in court to challenge the repossession.
What About the Personal Property in My Car?
You have a right to get your personal items back. The repossession company must set a time for you to do so.
You probably won't be able to get anything back that has become part of the car. For example, if you installed a car stereo, it's now part of the car and you're not going to get it back. You don't have to sign anything releasing the repo company from liability when you're retrieving your things.
If you have trouble with the repo company allowing you to get your things back, contact the lender. The lender doesn't want to be held liable for a wrong committed by the repossession agents.
Upsolve Member Experiences
4,940+ Members Online
What Happens After a Repossession in South Carolina?
The lender has to send you two more notices after the repossession. They need to send a notice of your right to redeem the car and a notice of what they intend to do with the collateral. These notices can be combined into one letter.
Right To Redeem
The right to redeem means you can get your car back if you pay off the whole loan balance. You must redeem the vehicle before the lender sells it.
The lender may agree to give the car back if you pay enough to catch up on the loan plus the costs of collection, but it’s not required.
Auctioning the Car
In the written notice of what they intend to do with the collateral, the lender must state if it intends to sell the collateral or keep it as satisfaction for the debt.
If the lender intends to sell the motor vehicle, it must say whether it will be sold at a private sale or a public auction. If the vehicle will be sold at a public auction, the notice must state the date, time, and place of the auction.
If the car will be sold in a private sale, the notice will state the date after which the vehicle will be available for sale. You should get these notices at least 10 days before the sale occurs.
Commercially Reasonable Sale
South Carolina's version of the Uniform Commercial Code (UCC) requires all aspects of the sale to be commercially reasonable. The sale of the collateral is considered to be commercially reasonable if:
The sale occurs in the usual manner for the sale of repossessed vehicles,
The price is competitive with the values of other vehicles of the same type at the time of the sale, or
The sale conforms with reasonable commercial practices among lenders selling repossessed automobiles.
Ensuring that a sale is commercially reasonable is important since the sale price will determine if you'll receive a surplus payment or be liable for a deficiency balance.
Regardless of what the lienholder (your lender holds the lien) wants to do, if you’ve paid 60% of the original loan amount, you can force the lender to sell the vehicle within 90 days of the vehicle repossession. This rule exists because you’ve paid so much for the vehicle that there’s a good chance the sale will bring a surplus. You have a right to this money.
Do I Still Owe After a Repossession in South Carolina?
When your car is repossessed and sold, the money from the sale first goes toward the lender’s repossession costs, like towing, storage, and preparing the car for auction. Anything left over is applied to your loan balance.
If the sale doesn’t bring in enough to cover what you owe plus repossession costs, you’ll still be responsible for the difference. This is called a deficiency balance, and it’s common if you already owed more on the car than it was worth.
If you know your car will be repossessed, you can choose to voluntarily return it to the lender. Doing so can help reduce the deficiency because you won’t be charged repossession costs.
In some cases, the sale might bring in more than enough to cover the balance and costs. If that happens, the lender has to return the extra money to you.
Can I Get My Car Back After a Repossession in South Carolina?
In South Carolina, you have a right to redeem the vehicle if you do it before the vehicle is sold. With a public auction, this gives you about 10 days.
If the lender is going to conduct a private sale, you'll have more time since it will only be on the car lot after 10 days. It's not likely to sell on the first day. To redeem the vehicle, you'll have to pay the entire amount due on the loan plus the costs of collections and repossession.
Another way to get your car back would be to go to the auto auction. You can bring bidders with you. Maybe you have a family member or friend who will buy the car and let you make car payments to them.
Another way to get your vehicle back is by filing bankruptcy. If you think this might be a good option for you, seek legal advice from a South Carolina bankruptcy attorney as quickly as possible. You must file your bankruptcy before the sale. You may be able to file a Chapter 13 bankruptcy case that would alter your car loan to make the payments more affordable.
