Bridgecrest handles all payment processing, customer service, collections, and repossession actions. Consequently, if you miss a payment, you will not deal with Carvana customer support. Instead, you will need to communicate directly with Bridgecrest to resolve the delinquency. If you secured your loan through an external bank or credit union, that specific financial institution will manage the collections and repossession process. ## What to Expect When You Miss a Payment Lenders generally prefer to collect payments rather than repossess vehicles, as the repossession process is costly and time-consuming. However, they will take action if a borrower stops communicating or fails to pay. Here is the general timeline of what happens after a missed payment: * **Immediate Communication:** Within a few days of a missed payment, the lender will contact you via phone calls, text messages, emails, or letters. The goal of this outreach is to remind you of the missed payment and secure a payment date. * **Late Fees:** Most auto loan contracts include a grace period, typically between 10 and 15 days. If the payment is not received before the grace period ends, a late fee will be added to your account balance. * **Loan Default:** If a payment remains unpaid for a prolonged period—usually 30 to 90 days—the loan is officially considered in default. The exact timeframe for default is defined in your specific loan agreement. * **Repossession Scheduling:** Once the loan is in default, the lender can authorize a repossession agency to recover the vehicle. Depending on state laws, lenders are often not required to provide advance notice of the exact date and time the car will be taken.
## How the Repossession Process Works If the lender decides to move forward with repossession, they will hire a local repossession service. The process typically unfolds in one of two ways: * **Involuntary Repossession:** A repossession agent will locate the vehicle using license plate readers, GPS tracking (if equipped), or the address on file. They can legally tow the car from public streets, apartment complexes, or your driveway. However, they cannot "breach the peace," which means they cannot break into a locked garage or use physical force to take the vehicle. * **Voluntary Surrender:** If you know you cannot afford the payments and want to avoid the stress of an involuntary repossession, you can choose to surrender the vehicle voluntarily. You arrange a time to drop the car off at a designated location. While a voluntary surrender still negatively impacts your credit score, it can save you from paying the repossession fees that lenders typically pass on to the borrower. ## The Financial Aftermath of Repossession
Repossession does not instantly wipe out your debt. After the vehicle is recovered, the lender will prepare it for sale, usually at a wholesale auction. Once the car is sold, the proceeds are applied to your outstanding loan balance. However, the lender will also add the costs of towing, storage, and auction fees to your total debt. If the auction price is less than the total amount you owe plus these fees, the remaining balance is called a "deficiency balance." You are legally responsible for paying this deficiency. If you fail to pay it, the lender can send the debt to a collections agency or sue you to garnish your wages. Additionally, a repossession remains on your credit report for seven years, making it significantly harder and more expensive to secure auto loans, mortgages, or credit cards in the future. ## Steps to Prevent Repossession
If you are struggling to make your payments to Bridgecrest or another lender, taking proactive steps as early as possible is the best way to protect your vehicle. * **Contact Your Lender Immediately:** Do not ignore calls or letters. Explain your financial situation to the customer service department. Lenders often have programs to assist borrowers facing temporary hardships, such as payment deferrals or loan modifications. * **Request a Payment Deferral:** A deferral allows you to skip one or two payments and add them to the end of your loan term. While interest may still accrue during this period, it brings your account current and stops the repossession process. * **Refinance the Loan:** If your credit score is still relatively healthy, you can apply to refinance your auto loan through a bank or credit union. Refinancing can lower your monthly payments by extending the loan term or securing a lower interest rate. * **Sell the Vehicle:** If you owe less than the car's current market value, you can sell the vehicle to pay off the loan entirely. This allows you to walk away without a repossession on your credit report.
