Smart Cars and Repossession

Are Smart Cars Easier to Repossess?

Smart technology is changing everything, from how we drive to how lenders recover property when payments stop. So it should come as no surprise that smart cars and repossession impact each other.

If you drive a smart car or are thinking about buying one, you might be wondering if all that built-in tech will make it easier for your car to be tracked and repossessed.

As a Memphis bankruptcy lawyer, I’ve seen firsthand how repossession methods have evolved. Here’s what you need to know.

What Makes a Car “Smart”?

Smart cars aren’t just about Bluetooth and touchscreen controls. They also come with enhanced technology that can improve safety and make navigation easier.

But as a result, they’re usually interconnected to systems outside themselves. Many newer vehicles come with features like GPS tracking, remote disabling, over-the-air updates, and internet-connected systems.

Some even allow lenders to shut the car off or track its exact location without ever leaving their desk.

How Smart Technology Affects Repossession

Not every car with modern tech has all of the above. But lenders are certainly using smart car technology to make repossession faster, cheaper, and more predictable.

Here are some of the ways this technology might come into play if you fall behind on your payments:

Remote Shutoff

Some lenders install devices that let them disable your car remotely once you’re behind on payments. That means the car might not start, sometimes without warning.

GPS Tracking

With built-in or installed GPS devices, lenders can potentially locate your car in real time. This makes it easier for repossession agents to find and take the vehicle, even if you try to move or hide it.

Geofencing Alerts

Some systems can send alerts when a vehicle leaves a certain area. This makes it even harder to avoid repossession.

Digital Key Access

In some models, repossession agents don’t even need a traditional key. If the lender has access to the system, they might be able to unlock or start the car digitally.

We’ve written before about self-repossessing cars. As this technology advances, you may have fewer ways to protect yourself. At the very least, people who assume they can hide their car as a solution might lose their vehicles.

What Are Your Rights?

Even with all this tech, your rights don’t go away.

First off, whether or not your car is easy to find, agents still have to protect the peace. Tennessee law says repossession agents can’t use force, enter a locked garage, or threaten you.

In addition, after your car is taken, you have a right to be notified about what happens next, including how and when it may be sold.

And lastly, if your car is shut off in a dangerous situation – for example, while you’re driving – or taken without following the law, you may have a legal case.

Can You Stop Repossession?

Yes, but you have to act fast. If you’re behind on your smart car payments, here are a few things you can do:

If possible, catch up quickly. This can mean finding the money to pay back your debt, but you might also be able to negotiate. Some lenders will work with you if you explain your situation and are willing to make a payment plan.

You also have the option to voluntarily surrender. If you know repossession is coming, returning the car on your terms may reduce fees and save you stress.

But if neither of those work for you – if you need to stop repossession and get out of debt – you have the option to file bankruptcy.

Bankruptcy puts an automatic stop to repossession, whether your car is smart or not. And then, working with our attorneys, you can figure out your options to keep your car and get a fresh start.

Legal Help with Smart Cars and Repossession

Smart cars might make repossession easier for lenders, but they also make it more urgent for you to act fast.

If you’re at risk of losing your vehicle, don’t wait until it’s gone. Reach out to my office for a free consultation.

As a Memphis bankruptcy lawyer, I’ll help you understand your rights and explore ways to keep your car, get out of debt, and get a new lease on life.

Technology may be smarter, but so are you. Let’s find the solution that works best for your future.