Applied for a truck loan, but was not able to make payments. Worry to know what happens if you can’t make the payments on time. Don’t worry, you still have certain rights in case you risk your truck getting repossessed. 

However, it is financially and emotionally difficult to lose a truck due to repossession. If you understand that your repossession was an error because you deposited the installment on time, then there is a need to contact your loan officer. 

Pioneer Financial Services helps customers and their difficulties related to truck and trailer financing in Calgary. If you find yourself unable to make payments on your truck loan and the lender decides to repossess the vehicle, what happens next? Let’s explore the process and its implications.

Repossession Process

1. Repossession: Chances you may miss payments on your truck loan, then you lose all your rights to the vehicle, and the lender raises the right to repossess the truck. Lender claims right typically only after you missed several payments. The timeline for the vehicle to be repossessed by the financing company varies from country to country or state to state.

2. Sale of the Vehicle: If you are unlucky, you lose all your rights to the truck after the lender completes the repossession process. He then has legal rights to sell it to anyone else at suggested prices to recover the money you owe. However, there is a chance that the sale price may not cover the outstanding loan amount. If the truck is depreciated significantly, the sale price may fall short. In this situation, according to the law, you will be liable to pay the deficiency along with the creditor’s repossession expenses.

Retrieve Personal Property

Sometimes you have your private belongings stored in your truck that you need to remove before the repossession process begins. Demand extra time from the lender to manage your belongings. If you neglected to keep your possessions prior to the truck being repossessed, get in touch with your lender to retrieve them. Make a list of the items you left in the vehicle. Contact a lawyer in case the lender demands charges for the return of your property.

Your Options After Repossession

1. Reinstating the Loan: It depends on which country or state you are living in because some government laws grant borrowers the right to reinstate their loan after repossession. If your state allows this, then you need to pay the overdue payment and repossession costs to the lender. By doing so, you will regain your right over the truck to use it in your business transactions.

2. Negotiating with the Lender: You can also negotiate with the lender. They may allow you to pay off the loan in full (including the deficiency) or work out a new payment plan. Communication is crucial during this process. There is a chance that your lender will allow you to negotiate the period to pay your remaining installments. They can also offer you a new payment plan at low rates of interest, making it easy for you to pay on time. You can schedule a meeting time with the financier to end your loan dispute, protecting your truck from getting repossessed. 

The Impact on Your Credit Score

Yes, repossession significantly impacts your credit score. A low credit score will make it harder for you to get loans in the future. Experts share that repossession reports could stay on credit scores for more than 7 years. Lenders send repossessed reports to credit bureaus, raising a negative mark on your credit score. 


If your truck gets repossessed, contact Pioneer Financial Services, and we will guide you with the best solution to come out of this stressful situation. We offer an end-to-end problem-solving solution for truck and trailer financing in Calgary. Contact us for quality financing without compromise.