What Happens If My Vehicle Is Repossessed
The laws covering repossession in the State of Texas are very straightforward. A registered lender can repossess your vehicle if you take out a title loan and fall behind on the loan payments. That means you could face a repossession just days after you miss your monthly payment, and the lender doesn’t even need to go to court to take the car or give you notice officially. If you end up doing nothing or can’t get back to current on the payments, your lender will eventually sell the vehicle at an auction and use the proceeds from the sale to pay down the balance of your loan.
Now that we’ve covered the heavy stuff, let’s discuss what happens in most situations when you fall behind on title loan payments and what you can do to avoid this.
Why Would A Lender Not Want To Repossess Your Car
In nearly every situation, your lender will want to avoid a title loan repossession and will work with you to get back on track with the payments. Repossession costs money, and they would rather not have to deal with an expensive repossession. Excess costs add to their losses when they start the repo process, and it’s in their best interest to get you back to making payments. Besides that, they make their money off the high interest rates you pay each month. Talk to any legitimate company that offers title loans near me in Texas. Most will confirm they don’t want to deal with repossession and would rather have a situation where you make on-time monthly payments.
Protect Yourself From A Repossession in Texas
It is vital for anyone who wants to take out an online title loan in Texas to go to a licensed loan agency or a company that the Texas Banking Department regulates. Companies like these will all be monitored for compliance and strictly follow the Texas title lending regulations for 2025. You can find state-regulated title loan agencies using the state’s lender database or searching online for local title loan companies in Texas. Make sure you deal with reputable agencies fully licensed to operate within Texas and ask each lender what their process is if you fall behind on the payments.
Not all companies involved in a title loan operation are equal regarding how strict they are on regulations and lending terms. When looking for a reputable loan agency, you must ensure they have a high volume of transactions and read their certified online reviews. Take note of companies with multiple complaints involving situations where they repossessed a vehicle. You’ll want a reputable title loan agency with a positive customer satisfaction record. Most of the larger title loan companies in Texas have both positive and negative reviews online and that’s understandable. But title loan companies aggressively repossessing vehicles will have far more complaints from customers who feel they were unfairly targeted or not given due notice of a repossession.
How To Avoid A Title Loan Repossession
The first step is knowing the current title loan repossession laws and using that information to avoid losing your vehicle. This is easier said than done because the rules and restrictions constantly change, and each state has different statutes regulating licensed finance lenders. Most companies will offer you a title loan according to the information you provide on a credit application. Do what you can to repay the loan quickly, as a lending agency will usually not ask for extra money. They’re getting paid monthly with high APR payments and are happy to see the loan through.
If possible, try to pay off the loan early in one lump sum and contact customer service to see if you can renegotiate the payment terms. Consider a refinance or title loan buyout of the existing loan to get a fresh start and new financing terms for your loan.
Immediately contact your loan rep if there’s a chance of falling behind on the payments. Most local title lenders will want to work with you to keep the payments current, and they will likely try to work out a payment plan or lower the amount owed for specific months if you’re facing financial hardship.
Another lesser-known way to avoid a title loan repossession in Texas is to make it difficult for a lender to find your vehicle. This doesn’t mean you should do anything illegal or drive the car to another state. However, according to state law, your lender can only repossess your vehicle on public property. Essentially, there’s nothing they can do if your car is in your garage and inaccessible to tow trucks. Take this advice as a last resort, as it may give you a few days to work out a repayment plan with your lender.
Alternatives To A Repossession With Texas Title Loans
Just because your lender threatens to repossess your vehicle doesn’t mean you’re out of options. While the clock is certainly ticking, time is on your side, and Texas Title Loans can help you if you’re in danger of losing your vehicle or if it’s already been taken by your lender.
We work with multiple lenders in Texas that can refinance your existing loan. That means you may be able to get a lower monthly payment and you’ll undoubtedly get a lower interest rate if you qualify for a refi. Another option is where your original lender is bought out, and you get a fresh start on a title loan with terms and payoff amounts that work for you. We speak with customers often who are just weeks away from having their vehicle repossessed and get a buyout or repossession where they no longer need to worry about losing their vehicle!
Call Texas Title Loans at 844-243-3195 to learn how we can help you avoid an imminent repossession. We’ll put together a new payoff estimate with just your current loan information and desired repayment terms, and there’s a good chance you’ll get an estimate in less than 30 minutes! Not everyone will qualify for a repossession or loan buyout, but there’s no risk in calling us to see if we can help work out new repayment terms with your current lender or find you a new loan with another lender in Texas.