Of course, many lenders in Ohio do allow borrowers to go into default for at least a short grace period before they will repossess your vehicle. The bottom line is, if you are using your car as collateral for an auto loan, then your lender can take the vehicle back immediately if you are late with your payment. This is unless you contact your lender and make alternative arrangements for repayment beforehand. If your loan contract doesn’t specify terms like this, the lender has the legal right to repossess your vehicle the day after your payment is due. But your loan contract may give you more leeway and outline the actions the lender can take when you go into default.įor example, your loan contract may state that if your payment is more than five days late, you’ll be charged a late fee and additional late fees will be applied for every day you are late after that.
In fact, Ohio’s auto repossession law says that the vehicle lender or secured party can repossess your vehicle if you are just one day late with your payment. These regulations don’t give borrowers very much leeway when it comes to delinquent payments. Ohio’s car repossession laws and regulations are all laid out in detail in Section 1309 of the Ohio Revised Code. Here we will examine Ohio’s laws and what you need to know if you live in Ohio and can’t make your payment or have already experienced vehicle repossession. Vehicle repossession laws are largely the same in all states, but some details governing borrowers’ and lenders’ rights differ from one state to another.
If you take out a loan to buy a vehicle and you become unable to make the payments, then you run the risk of having your vehicle repossessed.
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