Washington Repossession Laws: What You Need to Know in 2025

How Many Payments Can You Miss Without Risking Repossession?

In Washington, missing just one car payment can technically lead to repossession. Your loan agreement determines if that counts as a default.

Most lenders don’t act immediately after a single missed payment. But some may. It depends on the terms in your auto loan contract.

Check your loan paperwork to see what your lender considers a default. Don’t wait until it’s too late.

Will You Be Notified Before the Repossession?

In Washington, lenders usually don’t have to give you any warning. Your vehicle could be taken without notice if you’re behind on payments.

After the repossession, the lender must send you a notice. The notice explains what they plan to do with the car. It also tells you how you can get it back.

How Can You Prevent a Repossession?

If you’re struggling to make a car payment, contact your lender immediately. Some lenders may be willing to work with you.

They might offer a short-term payment plan. They might give you extra time to catch up. The sooner you reach out, the more options you may have.

If you can’t work something out, try to stay current. Even making a partial payment might show good faith.

Some people also explore Chapter 7 bankruptcy. When you file, the automatic stay goes into effect. The stay is a legal protection that temporarily stops most collection efforts.

Repossessions stop during the automatic stay. But if you’re behind on payments, the lender may ask the court to lift it.

Filing Chapter 7 can give you breathing room. If keeping the car isn’t realistic, many people use it to give up the vehicle. Chapter 7 can also help wipe out a deficiency balance. You can speak with a bankruptcy attorney for free to explore your options.

What Can Repo Companies in Washington Do?

Under Washington law, repo companies aren’t allowed to breach the peace. Repo agents can’t take your car from your garage. They can’t take it from behind a fence at your house.

But they can take your car from your driveway. They can take it from a parking lot.

If you catch the repo agent in the act and tell them to stop, they should stop. If they continue, that’s a breach of the peace.

Don’t try to force them to stop. If you do, you’ll have breached the peace. You could even face criminal charges.

What About Personal Property in Your Car?

If you think you’re at risk of repossession, don’t leave personal belongings in your car. You’ll avoid the stress of trying to get your things back later.

If your car has already been repossessed, the repo company must schedule a time. You can pick up your personal items during that time.

If they haven’t reached out, send a written request. WashingtonLawHelp.org has a letter template you can use.

If you’re having trouble getting your items back, contact the lender. In some cases, you may be able to hold both parties responsible in court.

What Happens After a Repossession in Washington?

After your car is repossessed, the lender must send you a written notice. They have to wait at least 10 days after sending the notice. Only then can they move forward with the sale.

The notice must include:

• Information about your right to redeem the car
• Whether the lender plans to keep or sell the car
• The time and place of a public auction
• The earliest date for a private sale

If you’ve paid more than 60% of the loan, Washington law requires a sale within 90 days. That protects your right to a surplus. A surplus is money left over if the car sells for more than you owe.

If you’ve paid less than 60% of the loan, the lender may propose to keep the car. They must send you a written notice first. You then have 20 days to object in writing.

Some people choose to object if they believe the car might sell for more. The sale must be commercially reasonable. The lender has to sell the car in a fair way.

The sale price could affect the amount you still owe. That’s known as a deficiency balance.

Do You Still Owe After a Repossession in Washington?

You may still owe money after a car repossession. If the sale price isn’t enough to cover your loan balance, you could be responsible. You’d be responsible for paying the difference.

A deficiency balance often includes towing fees, storage fees, and auction costs. To avoid this, some people choose voluntary repossession. You give the car back to the lender before it’s repossessed.

Voluntary repossession doesn’t erase the debt. But it may lower the total amount owed by avoiding some extra fees.

If there’s a deficiency balance, the lender may take you to court. They may ask for a deficiency judgment. If they win, they can use collection methods like wage garnishment.

Chapter 7 bankruptcy can discharge a deficiency balance after repossession. You can speak with a bankruptcy attorney for free to see if you qualify.

Can You Get Your Car Back After Repossession?

In some cases, you may be able to get your car back. Under Washington law, you have the right to redeem the car.

To redeem it, you have to pay off the entire loan balance. You also have to pay any repossession costs like towing and storage. You can’t just pay the missed payments.

Timing matters. Once the car is sold, it’s usually too late. If you’re hoping to redeem the car, act quickly.

Where Can You Find More Information?

The following links could be helpful if you’re facing repossession:

• WashingtonLawHelp.org: Useful information about Washington’s repossession law
• Find Legal Help: Help from the Washington State Bar Association
• Washington State Office of the Attorney General: Information on the repossession process in Washington