William Lipovsky
Toyota Financial Services’ repossession policy varies by customer. If you’re worried about repossession, your best bet is to speak with TFS about your options to make sure you don’t default on your loan.
Below, we explain more about the policy and what to do if your car is repossessed.
Toyota Financial Repossession Policy
We spoke with customer service from Toyota Financial Services (TFS) who confirmed that its repossession policy is decided on a case-by-case basis.
You’ll need to review your contract with TFS and/or contact TFS directly by calling (800) 874-8822 for details.
If you’re worried about repossession, your first step should be to discuss your options with TFS.
Toyota Financial offers extensions and deferrals, but you’ll need to complete an evaluation for approval. Additional fees may apply. They want to get their money back so they will help make it more feasible for you to be able to do that.
We saw at least one consumer report of TFS repossessing a car after just two missed payments.
Also, late fees and the repossession process vary by state. Creditors are often not obligated to give you any notice before coming to your property and seizing the vehicle.
You do have the right to refuse them from taking the car. However, creditors cannot do anything that would disturb the peace or incite violence, such as taking the car by force.
And, any property inside the vehicle still belongs to you; the creditor is obligated to return your possessions.[1]
What Are Your Options After Repossession?
If your vehicle is repossessed, all is not necessarily lost! You may still be able to get your car back. In most states, you’ll have 10 to 30 days to take action before the car is sold at an auction.
One option is redemption, in which you pay the entire balance due on your loan, including the past due balance and any fees associated with repossession. Find out more about the right to redeem.
Another option is to reinstate the loan by paying the past-due balance and any fees you owe for the repossession. And, as a final option, you have the legal right to purchase the vehicle at an auction when it is sold.[2]
If you do manage to get your car back, you’ll need to renew the registration and try to get the title and registration back in your name. (This may prove difficult, as some states require the title to be in the lender’s name after a repossession.)
If you’re unable to get the car back, you’ll likely still owe money on the delinquent account. The delinquent account will include the balance of the loan, plus any fees, minus the amount the car sold for at auction.[2]
Another challenge you may have to navigate after repossession is getting your credit back on track. A repossession will show on your credit report for seven years, and will negatively impact your credit score.
To rebuild your credit, be sure to practice good financial habits, such as paying all of your bills on time and not using too much of your available credit.[3]
