Will I Owe Money After My Car Is Repossessed in Florida?

If you lose your car to a repossession in Florida, the lender might be able to sue you for the loan balance. However, you could qualify for an exception under Florida law if you don't owe a large amount on the vehicle.

Generally, a lender can demand you repay a deficiency after car repossession. But Florida law makes an exception: If your unpaid loan balance at the time of default is less than $2,000, the lender can't go after you for the deficiency. (Fla. Stat. § 516.31(3) (2024.)

Read on to learn about car repossession laws in Florida.

How Many Payments Can I Miss Without Risking a Repossession in Florida?

Under Florida law, the lender may repo your car even if you miss just one payment. (Fla. Stat. § 679.609 (2024).) However, sometimes, the car loan contract will describe when the loan goes into default. The contract might provide a grace period, giving you additional time to pay.

How Car Repossessions Work in Florida

If you fall behind in your car loan payments, your car lender can arrange to have your car repossessed. When this happens, the car repo company simply takes your car—it doesn't need your permission.

Under Florida law, repo agents can enter your property and take your car without any notice as long as they can do so without breaching the peace. (Fla. Stat. § 679.609 (2024).) So, for example, a repo agent can't cut through a lock on a gate or break into your garage to get the vehicle.

What Is a "Deficiency" After a Car Repossession?

Unfortunately, in most car repossession situations, the former car owner ends up owing a deficiency. A "deficiency" is the difference between what you owe on your car loan and what the lender gets when reselling the vehicle. In Florida, if the lender follows all of the procedures for the repossession and subsequent sale, it is generally allowed to sue the borrower for a deficiency judgment if the unpaid loan balance at the time of the default was $2,000 or more.

For example, say Flynn owes $13,000 on his car loan at the time he defaults on the loan, but it sells for $10,000. The lender could sue Flynn for a deficiency judgment to collect the $3,000 deficiency.

But, even if you owe a deficiency, if the lender didn't handle the process correctly when taking your car and selling it, you might still have a way to avoid paying that money.

When Is a Florida Car Lender Prohibited From Collecting a Deficiency?

Again, under Florida law, if at the time of default (when you stopped paying, for example), the unpaid loan balance is less than $2,000, the car lender can't try to collect a deficiency from you. (Fla. Stat. § 516.31(3)).

Also, because the lender has to follow Florida laws when repossessing the car and conducting a sale, if it fails to do so, you might have a defense to the deficiency even if your unpaid balance was $2,000 or greater at the time of default.

Will I Get Notice If I Owe Money After My Car is Repossessed in Florida?

The lender must notify you of the deficiency amount. It must also provide an explanation of how they calculated the deficiency (or surplus) and provide a telephone number or mailing address from which you can get additional information concerning the transaction. (Fla. Stat. § 679.616 (2024).)

How Can I Avoid a Car Repossession in Florida?

To prevent a car repossession in Florida, you should:

• Make sure you can afford your car payments. First, ensure that your monthly payment is affordable. That way, you won't fall behind in the first place.
• If you fall behind in payments, contact your car loan lender. If unavoidable circumstances cause you to become delinquent on your car loan, reach out to the lender. The lender might be willing to let you make up the late payments in a repayment plan, reinstate the loan by paying all of the missed payments (plus fees), or some other alternative, like giving you a monthly payment you can more easily afford. Be sure to get any agreement you make with the lender in writing.
• Consider bankruptcy. Also, while you probably shouldn't file for bankruptcy solely because of a car repossession, if you have other dischargeable debts, you might want to consider filing for bankruptcy. You might be able to keep the car. (To learn more, see My Car Was Repossessed. Can Chapter 7 Help? and Car Repossession and Chapter 13 Bankruptcy.

What Is Voluntary Repossession?

You might also consider voluntarily surrendering the car. With a voluntary repossession, you agree to give the vehicle to the lender to avoid a repossession. Be aware that unless you negotiate a lower deficiency amount as part of the process, you might still be responsible for paying the full deficiency if Florida law doesn't prohibit it.

What About My Personal Property Left Inside the Vehicle?

Why Is Immediate Action Crucial in Stopping a Florida Repossession?

If you're facing possible repossession in Florida, taking immediate steps is critical for several reasons:

• You might get to keep your car. Losing your car means losing reliable transportation, which is often essential for getting to work, running errands, and handling daily responsibilities.
• You'll protect your credit. A repossession significantly damages your credit, making future borrowing more difficult and costly. Acting quickly might help you avoid this lasting financial impact.
• You'll have more options. The earlier you address the issue, the more options you'll probably have. Your alternatives could include negotiating a repayment plan, modifying your loan, or even selling the vehicle to cover what you owe before repossession occurs.
• You can take advantage of Florida's repossession laws. Taking immediate action helps you explore your legal rights and potentially stop the repossession process.

Waiting too long limits your choices. By acting fast, you take control of the situation and improve your chances of finding a resolution that works for you.

Get More Information About Car Repossessions in Florida

To learn more about car repossessions in Florida and how to protect yourself, visit the Florida Attorney General's website.

Again, depending on the circumstances and if the lender follows the proper procedures for a repossession and sale, it's usually allowed to sue the borrower for a deficiency judgment to collect the loan balance. But you might have a defense to a deficiency if the lender didn't follow the correct process. Talk to a lawyer if you think the repossession or sale process for your vehicle was unfair or illegal.

Also, consider talking to a lawyer if you need help working out an arrangement with the lender to keep your car or voluntarily hand it over.