ABA Family Legal Guide

Automobiles

Buying, Renting, and Leasing a Car

Buying a New Car

How does redemption (the right to buy back the repossessed car) work?

As a general rule, you (the debtor) must pay the entire balance due, plus any repossession costs and other reasonable charges. Watch out for consumer credit contracts containing acceleration clauses. These force you to pay the entire outstanding debt, not just the amount of overdue payments. If default and repossession have already occurred, you probably don't have enough money to pay the entire balance. Redemption rarely takes place.