When your car is repossessed, the lender or financing company typically takes possession of the vehicle due to non-payment of the loan. The lender has a legal right to do this as stipulated in the terms of the loan agreement. Regarding the license plate or tag on the car, the specific procedures can vary depending on the jurisdiction, but here are some common scenarios:
You Remove the License Plate: In some cases, you may be allowed to remove the license plate before the repossession. This depends on the laws in your area, and it’s essential to check the local regulations. Removing the license plate before the repossession may prevent you from being held responsible for any tolls, parking tickets, or other violations that occur after the repossession.
The Lender Removes the License Plate: If you don’t remove the license plate, the lender or repossession company might take care of it. They may follow specific procedures for transferring the title or notifying the relevant authorities that they now own the vehicle.
Notification to DMV: In many places, the lender or repossession company is required to notify the Department of Motor Vehicles (DMV) or an equivalent agency about the repossession. This notification may include details about the transfer of ownership or the fact that the vehicle has been repossessed.
Transfer of Ownership: The lender will likely proceed to sell the repossessed vehicle to recover some of the outstanding loan balance. Once the vehicle is sold, the ownership is officially transferred to the new owner, and they will typically receive a new set of license plates.
It’s important to note that specific laws and procedures can vary by jurisdiction, so it’s advisable to check with your local DMV or legal authorities to understand the exact process in your area. Additionally, staying in communication with your lender and exploring options to address the outstanding payments may help you navigate the situation more effectively.
