No. If your car has been repossessed, you no longer own it. The lender took possession and now controls the vehicle. You cannot sell something you don’t own. Once repossession occurs, the lender will sell the car at auction to recover their loan balance.
What happens after repossession:
- Lender takes possession of the vehicle
- Lender sells car at auction (usually for wholesale value)
- Sale proceeds apply to your loan balance
- You may owe a deficiency balance if sale doesn’t cover the loan
- Deficiency can be sent to collections or result in lawsuit
Options before repossession:
- Sell the car yourself (even at a loss) to control the outcome
- Negotiate with lender for voluntary surrender
- Catch up on payments to keep the vehicle
- Refinance the loan if you have equity
Selling before repossession often yields better results. Junk car buyers may offer more than an auction, and you avoid repossession on your credit report. You’ll still need to pay any deficiency, but you control the sale.
If you’re behind on payments and the car is worth less than you owe, act quickly. Once the lender repos the vehicle, your options disappear. A junk car buyer can sometimes help you get enough to pay off or nearly pay off the loan before it reaches that point.
For cars where you do have clear ownership but lien paperwork is involved, see how to sell a car with a lien.
