GM Financial Repossession Policy Explained (+ Options After Repo)

If you’re saying, “GM Financial repossessed my car.” or you think they are about to, here’s what we can tell you. GM Financial’s repossession policy varies case by case. You should look at your purchase agreement to learn more about the conditions under which your vehicle can be repossessed. GM Financial will take into consideration your payment history and how long payment is overdue when deciding whether or not to repossess your vehicle. For more details, see below.

Things to Know About Car Repossession

Car repossession is when an auto lender takes back your vehicle because you are unable to make the necessary payments. The number of missed payments it takes before a lender repossesses your car depends on the company, how well you communicate your financial issues, and the laws in your state. But, keep in mind, your auto lender may be able to repossess your vehicle without warning. This information should be available in the terms of your purchase agreement.

Vehicle repossession typically involves a “repo man” coming to your home. If the vehicle is in plain sight, he or she may go ahead and take it. If it is in a garage or is blocked in such a way that it cannot be easily loaded on a tow truck, the repo man will likely come to your door and ask for access to the vehicle. In extreme cases, a repo man may ask neighbors for information on the vehicle — but this only happens in instances where someone is purposefully avoiding repossession.

Another important thing to note is that even if your car is repossessed, you still owe money to the lender. The lender will likely sell your car at a car auction. However much the vehicle sells for is subtracted from the overall sum you owe; what’s left is called the deficiency balance. You are responsible for paying this balance.

GM Financial Repossession Policy

Here’s the GM Financial repossession policy as best as anyone is able to say. GM Financial’s repossession policy varies case by case, according to our communications with the company. The main factors affecting a potential GM Financial repossession are the terms of the contract, your transaction history, and how past due payment is. If you miss one payment or payment is a few days past due, GM Financial will not yet start the repossession process. But it’s best to communicate your financial situation to GM Financial as soon as possible. Your vehicle is less likely to be repossessed if you talk to the lender about your situation and try to work something out. Of course, if you’re already too far behind on payments, your car may still be repossessed no matter what your story is.

As far as GM Financial’s vehicle repossession process, based on customer reviews, some people were given advance notice and others were not. And one customer review online claims GM Financial came to repossess her car in the middle of the night.

Additional options after repossession may include reinstatement or redemption, depending on your loan contract and your state’s laws. For reinstatement, you’ll need to pay any past-due amounts, plus late fees and other charges as determined by the lender. Redemption occurs when you pay the entire outstanding balance of the loan, including any extra fees.

Both of these options allow you to get your car back, though if your contract doesn’t explicitly mention them, be aware that not all states provide the right to reinstatement or redemption. Some GM Financial customers have reported getting reinstatement by discussing their situation with customer service. If your contract is eligible for reinstatement or redemption, you should contact GM Financial for assistance and ask them for a quote.

If you have an account with GM Financial and you want to learn more about how its repossession policy may affect you, call (800) 284-2271. A customer service representative can access your account and discuss the details of your contract with you.

In Summary

Car repossession occurs when you miss too many payments on your vehicle. Even after your vehicle has been taken, you will still owe money to the lender. Repossessed vehicles are typically sold at car auctions, and the funds from the sale are subtracted from the money that is owed. The remaining balance is how much you still owe.

GM Financial takes into consideration the terms of the contract along with your payment history and how long overdue payment is. If you have an account with GM Financial, you can learn more about repossession as it relates to you by contacting customer service and reviewing your contract.

Have a car loan through Santander? Check out our article: How Long Before Santander Repossesses My Vehicle?

Want to compare policies? Here’s Chrysler’s Repossession Policy