Repossession
When a lender takes back a car because the loan was not paid. It is a last resort and there are rules the lender must follow first.
Repossession is when a lender takes back a car that was used as security on a loan you have stopped paying. It only applies to secured finance like a secured car loan or hire purchase.
It is not instant. Under New Zealand law, the lender must send you a default notice first and give you a chance to catch up. There are strict rules about how and when a car can be taken.
If the car is repossessed and sold, the sale money goes toward what you owe. If it sells for less than the balance, you can still owe the difference, plus costs.
The best way to avoid all of this is to talk to your lender early if money gets tight. Many will work with you. Choosing an affordable loan from the start also helps, which is what we aim for. Get your fair rate.
See your repayments, then get a fair rate.
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