ABA Family Legal Guide

Automobiles

Buying, Renting, and Leasing a Car

Buying a New Car

What happens after the car repossession?

If this happens to you, you should consult a lawyer in your state to advise you of your rights under the law. As a general rule, the creditor (the entity that financed the car in exchange for a legal interest in the car) can resell the car. However, before that happens, you may have the right of redemption, or, in other words, the right to buy back the car (in legal terms, redeem the collateral).