Your Guide to Virginia's Repossession Laws

How Many Payments Can I Miss Without Risking a Repossession in Virginia? 

In Virginia, your lender can legally repossess your car after just one missed payment, unless your loan contract says otherwise. Some contracts may require you to be 90 days late before repossession begins, but if there’s no such term, being even a day late could put you at risk.

In practice, most lenders wait until you’re at least 90 days behind before moving forward, since repossession is expensive. Still, if you’re months behind on payments, repossession is likely.

Will I Be Notified Before the Repossession? How?

irginia lenders are required to honor a prior notice requirement. This means that lenders can’t repossess your vehicle unless they’ve told you — at least 10 days in advance — in writing, that your payments are past due.

Lenders must also clearly indicate that if you don’t bring your overdue balance current within 10 days (or more, if the lender grants you more time) that your vehicle may be repossessed. If the lender doesn’t send this notice, they can’t collect any costs associated with repossession or sale of the vehicle.

If you don’t pay your overdue balance or make alternative arrangements with your lender after receiving this notice, your lender doesn’t have to call you or otherwise tell you that plan to take your car. You may simply step out onto your driveway one day and discover that it’s gone.

This is one reason it’s important to be proactive in communicating with your lender if you’re at risk of missing a payment or you’ve already missed one.  

How Can I Prevent a Repossession?

The best way to prevent repossession is to talk to your lender as soon as you know you might have trouble making a payment. Many lenders are open to short-term solutions, like skipping a payment, deferring what you owe, moving a missed payment to the end of the loan, or even renegotiating your contract. In some cases, refinancing with a new loan might also give you more manageable terms.

Ultimately, the only sure way to stop a repossession is to bring your account current. In Virginia, this usually means catching up within the 10-day period outlined in the written notice you receive.

If keeping up with the loan just isn’t realistic, you can consider voluntary repossession. This means surrendering the car to the lender instead of waiting for them to take it. While it still affects your credit, it can save you the extra fees and stress of a forced repossession and may be a better choice if your loan is already upside down and payments aren’t manageable.

What Can Repo Companies in Virginia Do? 

The state of Virginia doesn’t require repo companies to be licensed. So, it can be hard to tell whether a repo man is acting legitimately when they’re repossessing your vehicle.

Do not attempt to make a repossession agent — even one who seems shady or otherwise illegitimate — leave by force, as you may be held legally responsible for use of force.

Instead, if a repossession service company tries to trick you, mislead you, get you to hand over your property by force, or use other unlawful repossession tactics, you’ll want to speak to a lawyer about your options.

Virginia repossession companies aren’t required to notify you before they seize your vehicle. They may take your car or truck from virtually anywhere it’s parked that isn’t locked. If you keep your vehicle in a locked garage, they’ll need to get a court order to retrieve it.

What About the Personal Property in My Car? 

In Virginia, you have the right to get your personal belongings back from a repossessed car quickly and at no cost. Repo companies must let you collect your things either before they take the vehicle (if you’re there at the time) or afterward once you contact them. They can’t charge you for returning your items.

Keep in mind this only applies to personal property, not items that are built into the car. You can take things like a child’s car seat, paperwork, or items from the glove box. But you can’t remove parts that are permanently installed, like an upgraded stereo system.

What Happens After a Repossession in Virginia? 

Once a repo agent takes your car or truck, you’ll be given the option to pay the balance you owe in full. This is called redeeming the vehicle. If you don’t redeem your vehicle or enter into an alternative repayment arrangement with your lender, your lender will sell your vehicle at auction. 

Virginia law requires lenders to give a minimum 15-day notice to borrowers whose vehicles will be sold. In this written notice, the lender must indicate the date and time of the sale and the total amount you must pay to redeem the vehicle.

Once your vehicle is sold, the certificate of title will no longer be in your name.

Do I Still Owe After a Repossession in Virginia? 

Your auto loan debt doesn’t disappear once your lender seizes your vehicle. You’re still responsible for the debt you owe. If your car is sold at auction, the proceeds of that sale will be applied to your total balance owed. This includes the loan amount plus fees.

If the vehicle sells at a profit, Virginia law mandates that the surplus be returned to you. If the proceeds of the sale don’t cover the total balance you owe, you’ll have to pay the remainder. This is known as a deficiency balance.

Make sure to repay your deficiency balance either as a lump sum or through an installment agreement you work out with your lender. If you fail to pay this amount, the lender may seek a deficiency judgment against you in court. This will hurt your credit score and may result in wage garnishment.

Can I Get My Car Back After a Repossession in Virginia? 

If your car has already been seized by a repo agent, Virginia law allows you to redeem it by paying off the full balance that you owe. This balance usually includes the total amount of the loan plus repossession fees, late fees, and other kinds of fees. You can redeem your car up until the time that it’s sold at auction.

You can try to work out an alternative repayment arrangement with your lender. You may be able to renegotiate the terms of your loan or reenter your existing loan after paying your overdue balance plus any repossession fees you owe.

Some lenders are hesitant to work with borrowers whose vehicles have already been repossessed, but others are more flexible. Exploring your options may be worth a try if you want to hang on to your vehicle.

Where Can I Find More Information About Repossession Laws in Virginia? 

If you want legal advice on how to deal with the risk of vehicle repossession or how to respond to a car repossession that’s already occurred, you can speak with an attorney or consult a local legal aid service office. Virginia has nine legal aid programs.

Visit VALegalAid.org to connect with a representative from the Virginia Poverty Law Center. They can help you to determine where your local legal aid service center is located and whether you’re eligible for free or low-cost legal services.