Yes, you can ask for your car to be repossessed, which is known as a voluntary repossession or voluntary surrender. While this avoids the fees associated with a lender hiring a repo agent, you are still responsible for the deficiency balance (the difference between what you owe and what the car sells for) and it will severely damage your credit.
How Voluntary Repossession Works
In Mississippi, a lender can legally repossess your car after just one missed payment, unless your loan agreement says otherwise. When you take out a car loan, the lender uses your car as collateral. That means missing even a single payment can count as a default and trigger repossession.
If you give your car back to the bank (a voluntary repossession), you're still responsible for the loan, but the bank sells the car and you owe the "deficiency balance"—the difference between what you owe and the sale price, plus fees, which severely damages your credit and can lead to collection or a lawsuit. While it's better than an involuntary repossession as you avoid towing/storage fees and show responsibility, it's still a major negative mark on your credit report for up to seven years, affecting future loans and insurance.
Stopping Car Repossessions by Lenders & Your Legal Options
You can often be at risk of car repossession after just one missed payment, though most lenders wait until you're 30 to 90 days (2-3 payments) behind, depending on your contract, lender policy, and state laws, with some "Buy Here Pay Here" (BHPH) lenders capable of repossessing almost immediately. Your loan agreement dictates the default terms, so check your contract; communicating with your lender is crucial to potentially avoid repossession.
So how long will a repo man look for a car? The answer is simple — until they find it. Therefore, rather than hiding your car, it's probably a better idea to look for different solutions to stopping repossession.
If you surrender the car, you won't owe the lender for the car loan or any deficiency balance from a repossession. When you surrender the car, the remaining balance on the loan becomes unsecured debt. This means it's no longer tied to the car, so the lender can't take any other property to collect the debt.
If you can't afford your car payment, your best options are to contact your lender immediately for hardship programs, deferrals, or modifications, refinance the loan for lower payments, sell or trade in the car for something cheaper, or voluntarily surrender it to avoid repossession, but always get agreements in writing to protect your credit.
If your car is financed through an auto loan you can't afford, voluntary repossession may be an option. This involves surrendering the car to the lender. They then sell the car and use the proceeds to pay off the remaining loan balance.
The 20/3/8 rule is a car-buying guideline suggesting you put 20% down, finance for 3 years or less, and keep your total monthly car expenses to 8% or less of your gross income, helping to ensure you buy reliable transportation without overspending and can still invest in other goals like retirement. It's a tool to avoid being "underwater" on your loan (owing more than the car's worth) and to prioritize financial health over luxury vehicles.
A partial payment might buy you a little time, but it will not prevent repossession. The loan is still considered in default, and it's up to the lender whether to cut you some slack.
Another alternative may involve negotiating over the arrears on your loan with the lender. Whether this is feasible may depend on the amount of the arrears, your previous interactions with the lender, and whether they are willing to negotiate. You might be able to refinance the loan or arrange for a new payment plan.
Missing car loan payments can lead to repossession and a lower credit score. After 30 to 90 days of missed payments, your loan can be declared in default. Lenders might offer options such as deferral, reduced payments, or refinancing if you're struggling financially.
You can get out of a current car loan by refinancing, selling your car or requesting a voluntary repossession, among a few other strategies. You could request a loan modification that could make your current car loan easier to afford.
You can surrender the vehicle voluntarily, or your lender could repossess the car without warning. With a voluntary surrender, you'll contact the lender and make arrangements to return your vehicle.