This page was written, edited, reviewed & approved by Emil J. Fleysher following our comprehensive editorial guidelines. Emil J. Fleysher, the Founding Partner, has 15+ years of legal experience as a bankruptcy attorney. Our last modified date shows when this page was last reviewed.
Falling behind on car payments is stressful. When a car is repossessed, it can feel like you’re out of options. But in many cases, you may still have a chance to get your car back. The key is understanding your rights and moving quickly. Reinstating your loan could help stop the repossession process and reduce further damage to your credit report.
Fleysher Law Bankruptcy & Debt Attorneys helps people just like you take the right steps after a vehicle repossession. Whether you’ve missed one payment or fallen behind on several, our team can review your loan terms, help you understand what’s possible, and work with you to get your car back.
Every case is different, so it’s important to act fast. The faster you respond, the more options you may have. Let’s break down how car loan reinstatement works and what you need to know.
To reinstate a car loan means you pay back the overdue amount to bring your loan current. This allows you to get your car back if it has already been repossessed, or stop the lender from selling it. Instead of paying off the full loan, reinstatement only requires you to catch up on what you missed, including missed payments, late fees, and sometimes repossession costs.
Most lenders allow a short time to reinstate after vehicle repossession, often just 10 to 15 days. If you act fast and make the required payment, they must return the car and let the loan continue as before. However, if you wait too long or don't pay the full reinstatement amount, they can move forward with the repossession process and sell the vehicle. Reinstating can be a good option to protect your credit report and keep your transportation.
Feature | Reinstatement | Redemption |
|---|---|---|
What You Pay | Only the missed payments, late fees, and costs to bring the loan current | The full balance of the loan plus any fees and repossession costs |
Purpose | To catch up on payments and keep the same loan terms | To completely pay off the loan and own the car outright |
When You Can Do It | Before the car is sold by the lender (usually within 10–15 days after repo) | Before the car is sold by the lender (same time window as reinstatement) |
What Happens After Payment | The loan continues as if you were never behind | The loan ends, and you become the full owner of the car |
Best For | People who want to keep the car and continue making payments | People who can afford to pay off the loan in full and want to end the loan |
If your car has been repossessed, you may still have time to get it back. But your ability to do this depends on several things. Whether you can reinstate your car loan usually depends on state laws, your loan contract, and how fast you act.
In many states, including Florida, you may have the right to reinstate your car loan even after repossession, but this right isn’t guaranteed for everyone. Whether you can do it often depends on the law where you live and the agreement you signed when you got the car loan. Some state laws give you a short window to fix the issue, while others leave it up to the lender.
Even if the law allows reinstatement, your contract must also include this option. If either one does not allow it, you may not be able to reinstate it. That’s why you must check both your contract and local laws right away so you don’t miss your chance to get your car back.
Your loan contract has a lot of crucial details, including whether car loan reinstatement is allowed after repossession. Some lenders include the right to reinstate, and others don’t. Look for words like “right to cure,” “reinstatement,” or “default.”
These sections will explain what you can do if you fall behind and how much time you have. If you can’t find it, ask the lender for a copy of your full agreement or ask an attorney to review it. Knowing what your contract says will help you decide your next step and avoid confusion about what you owe and what your rights are.
Most lenders will only give you a short window to reinstate the car loan. In many cases, you’ll have about 10 to 15 days from the date of repossession. That time can pass quickly, so it’s best to call the lender and request a reinstatement quote right away.
This quote includes the total amount you owe to bring the loan current, including missed payments, late fees, and any repossession costs. If you wait too long, the lender may sell the vehicle at auction, and once that happens, it may be too late to get it back, even if you have the money. Acting fast is your best chance to stop the repossession process and save your car.
Once you’ve paid the reinstatement amount, the lender must release the car to you. Usually, your vehicle will be at a repo lot or storage yard. Ask the lender for the address and what paperwork you’ll need to show before you can pick it up.
Some lots may charge daily storage fees, so it’s a good idea to go as soon as possible. Make sure to bring ID, proof of payment, and any forms they request. If you're unsure, call the storage company before going there. After pickup, be sure to get a receipt and something in writing showing that your car loan is back in good standing.
If you want to reinstate your car loan after repossession, you’ll need to pay more than just the missed monthly payments. The reinstatement amount often includes several types of fees, and knowing what’s included will help you avoid surprises and plan your next step.
The first part of the reinstatement amount is the total of all past-due loan payments you missed before the repossession happened. This includes every monthly payment you failed to make, going all the way back to when you first fell behind.
In most cases, the lender will not agree to return the car unless the full amount of missed payments is made at once. This means you can't just make one payment to catch up, but you must bring the account up to date. For example, if you missed three months of payments, you’ll need to pay all three in a single lump sum to proceed with the car loan reinstatement.
In addition to the regular monthly payments, lenders will also charge late fees for each payment you missed, and you may also owe interest that continued to grow during the time your loan was overdue. These extra costs are added to your balance automatically as soon as you miss a due date.
Even if the missed payments are small, the late fees and interest can quickly add up, especially if you’ve been behind for more than a month. These charges are part of the total reinstatement amount, and they must be paid in full for the lender to stop the repossession process and give your car back.
Once your car is repossessed, the lender will usually add the full cost of repossessing the vehicle to what you owe. These repossession charges can include the cost of sending the tow truck, transporting your vehicle to a storage yard, and storing the car until you pick it up.
In some cases, there may even be charges for preparing the car for sale. These costs vary depending on the company and how long the car is held, but they are almost always included in the reinstatement quote. You must pay all of them if you want to stop the sale and get your car back.
If the lender had to hire a collection agency or attorney to recover the debt, they may also charge you for legal or collection fees. These costs are added to your balance to cover the lender’s expenses of trying to collect the overdue payments. Some loan contracts include terms that allow the lender to add these fees to your account once the repossession process starts.
If they took you to court or filed legal documents, those expenses can also be included. Always ask for a detailed breakdown of the fees to understand where your money is going before you agree to pay the full reinstatement amount.
What Happens if the Lender Sells My Repossessed Car?
If the lender sells your repossessed car, the money from the sale goes toward paying off the entire outstanding balance of your loan. But if the car sells for less than you owe, you may still owe what’s called a deficiency balance, which is the amount left over after the sale. You may also be responsible for repossession fees, other fees, and even attorney's fees, depending on the contract.
Can I Still Get My Car Back After It Has Been Repossessed?
In some cases, yes. If your car was repossessed, you may be able to reinstate the loan by paying your past-due payments, late fees, and any repossession fees. But time is limited. If the repossession has already happened, you must act fast, especially before the car is sold at auction or through a private sale.
What if the Lender Used Physical Force During the Repossession?
Lenders or repossession agents are not allowed to use physical force when taking a repossessed vehicle. If you believe the repo was done in an aggressive or illegal way, you should contact an attorney or your state consumer protection agency. There are laws in place to protect your rights during the car repossession process.
Can I Set up a Payment Plan if I Can’t Afford the Full Amount?
Sometimes lenders will offer extended repayment plans or a payment plan if you can’t pay everything at once. These options can help you spread the cost of past-due payments, fees, and charges over time. Not all lenders allow this, so you should ask right away and get everything in writing if they agree.
Do I Have to Pay for Personal Items Left in the Car?
No. If your car is repossessed, you still have the right to collect the personal property inside the vehicle. Lenders can’t charge you for those items, and they must return them to you. If they refuse or try to charge excessive fees, contact a lawyer or your state consumer protection agency for help.
If your car was repossessed, you still have options, but the clock is ticking. In many cases, lenders typically sell the vehicle quickly after taking it, sometimes at auction or through a private buyer. Once that sale happens, it’s much harder to undo the damage or get the car back. That’s why it’s so important to act fast and understand your legal rights before it's too late.
Fleysher Law Bankruptcy & Debt Attorneys helps people across Florida who are facing repossession, missed payments, or financial hardship. We can explain your rights, review your loan, and help you understand any written notice you received from your lender. If you want to stop a repossession, reinstate your loan, or explore other options like bankruptcy, we’re here to help.
Call today for a free consultation and speak with a Florida bankruptcy lawyer who knows how to protect your car, credit, and peace of mind.
Emil specializes in consumer bankruptcy, debt settlement, and mortgage modification, offering a holistic approach to solving mortgage and debt problems. Emil listens to clients, understands their circumstances and goals, and helps them make the right choices by presenting all options and contingencies.
He is dedicated to helping South Floridians regain their financial freedom from overwhelming debt caused by high interest credit cards, bad mortgage loans, and uninsured medical expenses.
"*" indicates required fields
