Last reviewed: 2 October 2026

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Can't afford your car payment: the options the CFPB lists before repossession

The CFPB's first instruction is to contact your lender or servicer as soon as possible to ask what options are available, and its page lists four things to look into for a loan: a payment arrangement, getting the agreement in writing, refinancing, or selling the vehicle.^[2] This page reports what the CFPB says about each and about repossession. It does not tell you which option fits your situation, which depends on your loan contract, your state and your finances. For that, ask your lender or servicer, a state consumer protection office, a legal services office or a private attorney. General information, not legal or financial advice.

Start with your lender or servicer

The CFPB says that as soon as you know you cannot make a monthly payment, you should contact whoever you make your payments to, to find out what is available, which may include affordable payment plans, changing your due date, or pausing payments through forbearance.^[2] The CFPB also says:

• Get the agreement in writing. It also says to ask how the new agreement would affect your credit report. If you are told it will not and it then appears on your reports, a written agreement is evidence you can use to dispute the error.^[2]

Other options the CFPB lists for a loan

The sources we read do not discuss voluntarily surrendering a vehicle, so this page does not cover it; ask your lender or servicer how any option would be treated.

If you have a lease

• The CFPB says the dealership or company you leased through (the lessor) may be willing to work with you on an affordable payment plan, especially if you have made timely payments in the past, and that you should get any agreement in writing.^[2]
• Within your contract or under state law you might have the right to "cure" or reinstate your lease after missing a payment, meaning you can make up missed payments before the car is repossessed. You would generally receive a notice after a missed payment and have one to two weeks to make it up. If it is not in your contract, the CFPB says to check with your state attorney general or consumer protection office.^[2]

What the CFPB says about repossession

• Notice may not come first. In many states a lender can repossess a vehicle without a warning or a court order after you have missed a payment. Other states require lenders or servicers to send a notice before repossession, alerting you to the missed payments and allowing time to make them up.^[3]
• Servicemembers. If you are active-duty, the Servicemember Civil Relief Act (SCRA) prohibits repossessions without a court order for any auto loan contracts or agreements you entered into before your military service.^[3] See our SCRA explainer.
• "Breaching the peace." Under some state laws a lender cannot repossess unless it can do so without breaching the peace, which the CFPB says generally means threatening or using physical force, removing a vehicle from a closed garage without permission, or continuing after you have resisted or refused to allow the repossession.^[3]
• Belongings in the car. Contact your lender right away to arrange a time to retrieve them, and document what you left in the vehicle and its estimated value.^[3]
• Credit. A repossession could stay on your credit reports for up to seven years, and falling behind on car payments affects your credit. If the repossession was in error, you can dispute it with the credit reporting companies.^[3]
• Catching up after repossession. In some states, laws grant you the right to pay to get the vehicle back, usually within a set period; this is called curing or reinstating the loan.^[3]
• Sale and redemption. You have the right to be notified before the vehicle is sold or kept as compensation for your debt. You may be entitled to buy it back by paying the full loan amount plus repossession costs before the sale, which is sometimes called redemption.^[3]
• Deficiency and surplus. If the vehicle is sold, you may owe the difference between what is left on the loan plus repossession fees and the sale price, called a deficiency balance, and if it sells for more than you owe you are entitled to the surplus. In the CFPB's example, owing $10,000 and a sale for $7,500 leaves a deficiency of $2,500 plus fees. If you do not pay it, the lender is allowed to hire a debt collector.^[3]

For more, see our guide to repossession and deficiency balances.

Who to ask

• Your lender or servicer, for the options available under your contract.^[2]
• Your state attorney general and state consumer protection office, or a private attorney or local legal services office, for your rights under state law.^[3]
• If you cannot resolve a problem with a lender or servicer, the CFPB says you can submit a complaint or pursue legal action in court.^[2]

How to verify this yourself

1. Read the CFPB's auto loan page and its two answers on car payments and repossession.^[1][2][3]
2. Read your own loan or lease contract for due dates, prepayment penalties and cure or reinstatement terms.
3. Check your state attorney general or consumer protection office for state rules.

What this page does not cover

It does not recommend an option, compare lenders or rates, estimate what any option would cost you, or cover bankruptcy, voluntary surrender, or what a particular lender will agree to. The CFPB's two answers were last reviewed in September 2023, so confirm current guidance on its site. For the wider picture of debt options, see credit repair vs. debt settlement vs. consolidation.

When we will update this page

We revisit it if the CFPB changes its guidance. Sources last read 2 October 2026.