How Many Missed Payments Before Car Repossession?

When Will Debt Collectors Come To Repossess My Car?

Are you feeling overwhelmed by your car payments, perhaps even falling behind on them, and fear that your vehicle may be repossessed? Don’t fret, you’re not alone. Many people experience this worry, and it’s crucial to understand what steps you can take to prevent it from happening. This article will guide you through the intricacies of car repossession, specifically addressing the question: How many missed payments before car repossession?

What Happens When You Miss Car Payments?

If you’re unable to keep up with your car payments, it’s essential first to comprehend why this is happening. Are you struggling with other debts, making it difficult for you to keep up with your car loan? Or is it simply a temporary financial setback?

Whatever the reason, open communication with your lender is crucial. They need to know your situation, as they may be able to provide assistance or advice on how to handle your situation.

How Many Missed Payments Before Car Repossession?

The exact number of missed payments before a car is repossessed can vary, depending on the lender. Generally, however, after two or three consecutive missed payments, the lender may begin the repossession process.

Some lenders may have even more aggressive policies, with the ability to disable your vehicle remotely after just one missed payment. These steps are taken to recoup the loan payments that you owe.

The Impact of Car Repossession on Your Credit Report

Remember, car repossession doesn’t only affect your immediate financial situation—it also impacts your credit report. This could affect your ability to take out future loans or impact the interest rates you’re offered.

How Does Car Repossession Work in Canada?

Car repossession laws can differ slightly depending on your province. However, there are two types of car repossession: involuntary and voluntary.


Involuntary Repossession: This happens when you fail to make your car payments and do not negotiate with the lender on repayment terms. The result is that your car is repossessed.

Voluntary Repossession: This is when you understand that you cannot afford your car repayments and decide to surrender the vehicle back to the lender. Voluntary repossession can help avoid further costs associated with involuntary repossession.


How to Avoid Car Repossession in Canada

If you want to prevent your car from being repossessed, there are several steps you can take:


Communicate with Your Lender: The moment you realize that you won’t be able to make your car loan payments, contact your lender. They may be able to negotiate a new repayment arrangement.

Consult a Licensed Insolvency Trustee: These professionals can provide advice on various forms of debt relief, which can help alleviate financial pressure and make it easier to keep up with car payments.

Sell Your Car: If you feel that you simply cannot afford your car loan payments, selling your car before repossession becomes an option might be a wise move.

Voluntary Repossession: If you’re certain you can’t afford your car loan payments, opting for voluntary repossession can help avoid the costs associated with involuntary repossession.


The Effect of Car Repossession on Your Credit Score

Whether it’s voluntary or involuntary, repossession will negatively impact your credit score. Repossessions can remain on your credit report for up to seven years, making it difficult to secure other loans or credit.

The Bottom Line

Understanding the process of car repossession and knowing how many missed payments before car repossession can help you navigate this challenging situation. Remember, communication with your lender is crucial, and seeking advice from a Licensed Insolvency Trustee can be beneficial.


The prospect of having your car repossessed can be stressful, but it’s not a hopeless situation. By understanding the process, knowing your rights, and taking the right steps, you can navigate this situation and find a solution that works for you.

Remember, the answer to “How many missed payments before car repossession?” varies, but typically, after two or three missed payments, lenders may start the repossession process. Therefore, it’s crucial to act fast if you find yourself unable to make your car payments.

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