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 might qualify for an exception under Florida law if you don't owe a large amount on the vehicle.

Generally, a car 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.)

Can the Lender Repossess My Car in Florida If I Miss One Payment?

Under Florida law, the lender may repossess 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 repossession company simply takes your car—it doesn't need your permission.

Under Florida law, repossession (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?

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 to collect the deficiency 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.

Unfortunately, in most car repossession situations, the former car owner ends up owing a deficiency. If you don't pay the deficiency, the lender may take further action to collect it, such as filing a lawsuit against you for the balance.

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. (Fla. Stat. § 679.616 (2024).)

How Can I Avoid a Car Repossession in Florida?

To prevent a car repossession in Florida, you should first ensure that your monthly payment is affordable. That way, you won't fall behind in the first place.

However, 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.

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.)

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.

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.

Talk to a Florida Lawyer

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.