Arizona Repossession Laws: What Happens When You Miss Car Payments
Arizona allows lenders to repossess your car after just one missed payment without warning. Repo companies can take your vehicle from public areas or your driveway as long as they don't breach the peace. You can prevent repossession by catching up on payments, negotiating with your lender, or filing bankruptcy to trigger automatic stay protection.
Get Payment Plan HelpRepossession is when a lender takes back your car after you default on the loan. Arizona has specific laws that govern how repossession works. Understanding your rights can help you take action before you lose your vehicle.
What Is Repossession?
Repossession occurs when a lender reclaims property because you violated the loan agreement. Car loans are secured loans. Your vehicle serves as collateral.
Stop Repossession With a Payment Plan
Behind on car payments? Get a customized debt management plan that reduces your monthly obligations and helps you keep your vehicle. Arizona residents can start today.
Lower Your Payments NowWhen you stop making payments, the lender has the right to take the car back. In Arizona, they can do this without going to court.
How Many Missed Payments Trigger Repossession in Arizona?
Arizona lenders can repossess your car as soon as you default. Missing even one payment can put you at risk. Default can also include failing to maintain required insurance or violating other contract terms.
You don’t always need to miss multiple payments. Check your loan agreement to understand what counts as default.
Will You Get a Warning Before Repossession?
Arizona law doesn’t require lenders to warn you before repossession. They might send a late payment notice, but they’re not obligated to do so.
Arizona allows self-help repossession. Lenders can take your car without court approval, as long as they don’t breach the peace.
How to Prevent Vehicle Repossession
Taking quick action can save your car. You have several options:
- Catch up on missed payments. Check your loan contract for deadlines. Make payments by phone to avoid processing delays.
- Contact your lender immediately. Explain your financial situation. They may offer forbearance, a payment plan, or modified loan terms.
- Consider bankruptcy protection. Chapter 7 triggers an automatic stay that temporarily stops repossession. Chapter 13 lets you catch up on past-due payments through a court-approved repayment plan.
If you’re overwhelmed by debt, our partner Cambridge Credit Counseling can help you create a manageable payment plan.
What Arizona Repo Companies Can and Cannot Do
Arizona doesn’t require repo companies to have special licenses. Once you default, agents can legally take your car from public streets or your driveway without warning.
However, repo agents cannot:
- Use force, threats, or create a disturbance
- Break into locked garages
- Continue if you clearly ask them to leave your property
Many repossessions happen at night to avoid confrontation. Never physically block a tow truck or confront repo agents. Doing so could result in criminal charges.
If you believe your rights were violated, document everything and seek legal guidance.
What Happens to Personal Items in Your Car?
Repo companies can take your vehicle but not your personal belongings. They cannot legally keep or sell items left inside.
If your car was already repossessed, call the number on your notice to arrange item retrieval. Remove personal belongings before repossession happens if possible.
What Happens After Repossession in Arizona?
After taking your car, the lender will sell it to recover costs. Sales happen through public auctions or private transactions.
The lender must send you written notice that includes:
- Sale date and time for public auctions or timeframe for private sales
- Information about your right to know how proceeds are applied
- Whether you’ll owe a remaining balance after the sale
- Contact information for redemption or questions
Arizona law requires this notice within a “reasonable time” after repossession. The law doesn’t define what reasonable means.
How Repo Auctions Work
You can attend public auctions and even bid on your own car. Lenders must sell vehicles in a “commercially reasonable” way. They cannot sell far below market value.
Sale proceeds get applied in this order:
- Repossession, towing, and storage costs
- Your remaining loan balance
- Secondary lenders
- Co-signers
Most sales don’t cover the full amount owed. You’ll likely face a deficiency balance.
In rare cases, money remains after all debts are paid. You’re entitled to receive this surplus.
Will You Still Owe Money After Repossession?
The lender adds repossession costs and contract fees to your loan balance. The sale reduces this amount, but you’ll owe the difference if the sale price falls short.
Voluntarily returning your car might reduce your deficiency balance. You’ll avoid some repossession costs.
Can You Get Your Car Back After Repossession?
Arizona law allows you to redeem your vehicle before the lender sells it. The pre-sale notice includes redemption information and contact numbers.
Call immediately to understand the process and meet deadlines. You can redeem your car anytime before the lender completes the sale or signs a sales contract.
Lenders typically require you to pay the full loan balance plus late fees, repossession costs, and attorney fees.
Additional Arizona Repossession Resources
- Arizona Law Help provides state-specific repossession guidance
- Arizona Courts offers information on auto repossessions
- Federal Trade Commission explains vehicle repossession rights
- Arizona Revised Statutes contains the full text of repossession laws