Nevada Repossession Laws: Your Rights When Facing Car Repo

When you finance a car, your lender can repossess it if you stop making payments. Repossession is the lender’s legal right to take back your vehicle. You broke the contract by missing payments. Nevada has specific repossession laws you need to understand. Knowing your rights can help you protect yourself.

How Many Payments Can You Miss Before Repossession in Nevada?

Your lender holds a security interest in your vehicle until you pay off the loan. As a secured creditor, your lender can repossess your car if you default. Missing even one payment can trigger default status.

The timing depends on where you bought the car.

• Nevada dealer purchases after October 1, 2012: You’re not in default until your payment is more than 30 days late. Your contract must state this clearly. Repossessing before 30 days is a deceptive trade practice.
• Out-of-state purchases: Check your contract for specific terms. A grace period for late fees isn’t the same as protection from default. Review your loan agreement carefully.

Will You Get Notice Before Repossession?

Nevada lenders don’t have to notify you before repossessing your vehicle. Your lender might warn you, but the law doesn’t require it.

How to Prevent Repossession

You can stop repossession by catching up on missed payments. Call your lender immediately about getting current. If you bought in Nevada, you have at least 30 days to pay. You may owe late fees if your payment is more than 10 days late.

Catch up before the lender sends a repo agent or accelerates your loan. When a lender accelerates, the entire balance becomes due immediately. Many contracts waive your right to notice before acceleration. Once accelerated, your lender may reject late payments.

Contact your lender before missing a payment if you’re struggling financially. Ask about our partner Cambridge Credit Counseling for help with payment plans. They might offer extra time or defer your payment. Lenders work better with borrowers who communicate early.

Filing Chapter 7 or Chapter 13 bankruptcy might temporarily stop repossession. In some cases, bankruptcy can prevent it long-term.

Never hide your car to avoid repossession. You can face criminal charges for concealing property from repossession.

What Repo Companies Can Do in Nevada

A repo company can take your vehicle from any unprotected location. They can repossess from public streets, business parking lots, or your driveway. If your garage door is open, they can enter to take your car.

They Cannot Breach the Peace

Nevada law prohibits repossession that breaches the peace. Courts consider a breach when repossession happens at an unreasonable time or manner. Unreasonable manner includes when a repossessor:

• Opens a closed home garage to access your vehicle
• Breaks a locked gate to reach your driveway
• Takes your vehicle after you or someone else objects
• Threatens or uses physical force on anyone
• Threatens or causes property damage

Having a law enforcement officer present during repossession might constitute a breach of peace.

You Can Peacefully Object to Repossession

You or anyone else can object when the repossessor attempts to take your car. Objecting stops the repossession, or it becomes a breach of peace. Tell the repossessor to leave your property or not take your vehicle. You can stand in front of the vehicle or sit inside it.

Any objection must remain peaceful. You cannot physically interfere with the repossessor. You cannot damage the tow truck or equipment. Otherwise, you risk civil claims or criminal charges.

Objecting only delays repossession temporarily. The repossessor can return later. The lender can file a lawsuit for a court order.

Repossessors Must Have Licenses

Repossession businesses need licenses from the Nevada Private Investigators Licensing Board. Every repo company employee must be registered and carry a work card. You can verify licenses and registrations on the board’s website.

Buy-here, pay-here dealers don’t need licenses when their employees repossess vehicles. The Nevada Revised Statutes provide an exemption.

Tribal Land Repossession Rules

Vehicles on American Indian tribal land require following tribal law for repossession. Some tribes require a tribal court order before repossession. Nevada repo law applies when your vehicle leaves the reservation.

Military Member Protections

Military members receive additional protection under the federal Servicemembers Civil Relief Act. If you bought a vehicle before entering military service, the lienholder needs a court order to repossess it while you serve.

Government Shutdown Protections

Nobody can repossess vehicles owned by federal, tribal, or state government workers during shutdowns. The protection extends to their household members. It lasts during the shutdown and for 30 days afterward. Government contractor employees also receive this protection.

Your Personal Property in the Repossessed Car

Don’t leave personal items in your car if repossession is possible. The lender or repo company must give you reasonable opportunity to recover your belongings. But proving what was inside can be difficult.

Nevada contracts allow charging storage fees for personal property in repossessed vehicles. The federal Consumer Financial Protection Bureau considers requiring payment of storage fees before returning belongings an unfair trade practice.

Nevada dealers must hold your property for 90 days after repossession. For out-of-state purchases, the timeframe is unclear. Contact the repo company immediately about retrieving your belongings. Ask your loan company who took the vehicle.

What Happens After Nevada Repossession

Repossessors must report the repo to city police or county sheriff. The police or sheriff then reports it to the Department of Motor Vehicles. Your lender must resell the vehicle through private sale or public auction.

Pre-Sale Notice Requirements

Your lender must send written notice before selling your car. The notice must arrive within a reasonable time, at least 10 days before the sale. Ten days is likely reasonable in most circumstances.

The notice must include specific information:

• Itemized loan balance, repossession costs, and default-related fees
• Credits for unearned interest and canceled prepaid insurance
• Instructions for paying to get the vehicle back

The notice explains how the lender will sell the vehicle.

• Public auction: The notice specifies date, time, and location. You can attend and bid. You might buy back your vehicle below market value.
• Private sale: The notice states the earliest possible sale date.

Sales Must Be Commercially Reasonable

Both auctions and private sales must be commercially reasonable. Your lender doesn’t need to get fair market value. The sale must be a typical business transaction. Auctioned vehicles usually sell for less than private sales.

Selling to the lender owner’s family member at low cost isn’t commercially reasonable. Holding the car so long that its value drops significantly raises questions. If you’ve paid at least 60% of the cash price, the lender must sell within 90 days.

How Sale Proceeds Are Applied

Sale proceeds first cover repossession and sale costs. Reasonable costs include:

• Repossession expenses
• Storage costs
• Vehicle preparation for resale
• Sale-related expenses
• Attorney fees (if your contract allows)

Remaining proceeds go toward your debt. There’s rarely enough to cover everything. Any surplus goes to you. More likely, you’ll have a deficiency balance.

When to Get Legal Advice

Seek legal advice if something went wrong during repossession:

• You hadn’t defaulted when repo occurred, especially if you weren’t more than 30 days late on a Nevada purchase
• A breach of peace occurred
• Your lender didn’t send proper notice
• The lender resold your vehicle suspiciously cheap

Do You Still Owe After Repossession?

Most likely, yes. Taking and reselling your car doesn’t eliminate remaining debt. Deficiency balances are common after accounting for repo and sale costs.

Vehicles depreciate rapidly. You may have been upside-down on your loan, owing more than the vehicle’s value. An upside-down loan almost guarantees the sale won’t cover your debt. Sales below market value and added costs create deficiencies.

You won’t be liable for deficiency if your creditor fails to send timely, proper notice. Timely means within 60 days after repossession. Proper means including all information required by Nevada law.

Voluntary repossession means returning your car instead of waiting for repo. You still owe the deficiency balance. Voluntary return reduces the deficiency by eliminating repo agent costs.

After selling your vehicle, your lender must send written explanation of the deficiency. The explanation shows:

• Debt before resale
• Debt offset by sale proceeds
• Credits you’re entitled to receive
• Repossession and sale costs

You can request written explanation anytime. Your lender has 14 days to provide it. No deadline exists for paying deficiency, but lenders can sue for judgment.

Can You Get Your Car Back After Repossession?

You have limited right of redemption to reclaim your car. You must pay the entire remaining loan balance plus all repossession costs. You must redeem before your lender sells the vehicle. The post-repo notice explains how to redeem your car.

More Information About Nevada Repossession Laws

The Legal Aid Center of Southern Nevada offers instructions and forms for filing answers to auto deficiency lawsuits. The documents contain useful information about Nevada repossession laws even if you haven’t been sued.

Consider these resources for legal advice:

• Legal Aid Center of Southern Nevada, Nevada Legal Services, and Washoe Legal Services provide free legal advice if you qualify
• The National Association of Consumer Advocates lists private consumer law attorneys in Nevada
• State Bar of Nevada’s Lawyer Referral Service offers low-cost consultations

If you’re struggling with multiple debts beyond your car payment, our partner Cambridge Credit Counseling can help you create a manageable payment plan.