William Lipovsky
Short Answer — J.D. Byrider does not have a companywide repossession policy, but each independently owned dealership must follow state laws. Legally, J.D. Byrider has the right to initiate a repossession as soon as you fall behind on payments. You can contact the dealership you bought your car from to confirm its specific repossession policy and find out your options for avoiding repossession.
J.D. Byrider Repossession Policy
J.D. Byrider does not have a universal repossession policy. The policy varies by dealership, as J.D. Byrider locations are independently owned and operated,[1] and each state has its own repossession laws. For specific details, you can check your purchase agreement and/or contact the J.D. Byrider location where you purchased the vehicle.
In general, as soon as you start to fall behind on your payments, it’s within the legal rights of the lender to repossess the vehicle in order to settle the loan. The company does not offer a grace period for late payments.[2]
J.D. Byrider may be able to repossess your vehicle without warning, though many states do require lenders to provide advance notice before initiating a repossession. If and when J.D. Byrider repossesses a vehicle, it can remove the car from your property, but it cannot breach the peace or use force to take the car.[3]
J.D. Byrider recommends contacting your dealership or customer service to explain your financial situation if you’re worried about repossession.[2] A repossession is a hassle for lenders as well, and the company claims to work with customers who communicate their situation early to help avoid that outcome.
It’s also important to note that J.D. Byrider reports your payments to the three major credit bureaus: Equifax, Experian, and TransUnion. A repossession will stay on your credit report for seven years, negatively affecting your credit score.[4]
Caution: “Buy Here, Pay Here” Dealerships
J.D. Byrider is a “buy here, pay here” used car dealership, which means you can get your car financed directly through the dealership instead of through a third-party lender.
Many “buy here, pay here” dealerships, including J.D. Byrider, are known for providing financing to buyers with bad credit who have been rejected by traditional dealerships and lenders.[5]
However, since they work with high-risk borrowers, many “buy here, pay here” dealerships charge much higher rates than traditional lenders.[6] This can lead to an increased risk of repossession.
In 2017, J.D. Byrider agreed to pay out a significant sum to relieve customers’ debts, resolving a lawsuit alleging that the company was participating in predatory lending practices and selling cars to consumers that it knew the consumers could not afford.[7]
When buying a car from J.D. Byrider, be sure to understand the full terms and rates associated with the loan so you know you can afford to make on-time payments and avoid repossession.
What Are My Options After Repossession?
If your car has been repossessed, the lender will likely sell it at an auction and apply the sale price to the amount you owe on the loan. Most state laws require the lender to give you 10 days’ notice before selling the car at auction.
During this time, you may still have a chance to get the car back. You can reinstate your loan by paying the past-due balance (plus any applicable fees) or you can “redeem” your loan by paying the entire balance of the loan and fees.
If you’re unable to reinstate or redeem your loan, you still have the option to re-purchase the vehicle at the auction.[8][9]
Our related research has more information about your rights and options after a repossession.
