My Car Was Repossessed — What To Do Right Now (Australia)

If your car has just been repossessed, the most important thing to know is this: repossession is not the end of the road. Under the National Credit Code (Schedule 1 to the National Consumer Credit Protection Act 2009 (Cth)), you keep important rights after your vehicle is taken — including, in many cases, the right to get it back.

This guide explains what to do in the first 48 hours, what happens next, and whether you will still owe money — in plain language. It applies to cars financed under a consumer credit contract, meaning a loan for personal, domestic or household use.

Your car has not been sold yet — and that matters

A repossessed car is not sold immediately. The credit provider must follow a statutory process first: they must give you a written notice within 14 days of taking possession, setting out the date the goods were taken, their estimated value, the enforcement expenses incurred and accruing, and your rights. That notice must also state that the goods cannot be sold for 21 days after it.

Until the vehicle is sold, your right to reinstate the credit contract generally remains alive. That means paying the arrears (the missed payments) plus reasonable enforcement costs — not the whole loan — can entitle you to the return of your vehicle.

What to do in the first 48 hours

1. Ask the lender — in writing if possible — for the exact amount required to bring the contract up to date, including any enforcement costs. You are entitled to know this figure.
2. Check your loan contract for the repossession fee. It is often a fixed amount stated in the contract — which means the total figure should be quick to calculate.
3. Do not accept a verbal statement that the repossession "cannot be stopped" or "cannot be reversed." That is not what the National Credit Code says — see our guide on this exact statement.
4. If the lender delays providing the figure or refuses to engage, lodge a complaint with the Australian Financial Complaints Authority (AFCA). Lodgement is free, and once your complaint is accepted, the lender is generally required to pause enforcement — including the sale of your vehicle — while the complaint is open.
5. Gather your evidence now: the notification SMS or letter, your call log, screenshots of your loan balance, your bank statements showing available funds, and the default notice if you received one.
6. Call the National Debt Helpline on 1800 007 007 for free, independent financial counselling — they deal with repossessions every day.

Were the rules followed before the repossession?

Before repossessing, a credit provider must generally have given you a default notice allowing at least 30 days to remedy the default. If you never received a valid default notice, or the vehicle was taken before the notice period expired, the repossession itself may have been unlawful.

There are also restrictions on how and where a vehicle can be repossessed, and an absolute prohibition on taking it at all if you paid the overdue amounts and reasonable enforcement expenses before it was physically taken. If any of these protections were breached, that strengthens your position considerably in an AFCA complaint.

What happens after the car is sold

If the vehicle is sold, the money from the sale goes towards what you owe. Two things can happen from there, and both matter.

If the sale does not cover the balance, the difference — the shortfall — is generally still a debt you owe. This surprises people, and it is the single most important thing to understand before deciding to let a car go. If the sale raises more than the balance and costs, the surplus should be returned to you.

The shortfall is not automatically beyond challenge. If the vehicle was sold for less than it was worth, or if the lender obstructed your right to reinstate before the sale, the size of that shortfall — and who should bear it — is something you can dispute through AFCA.

What if I just let them take it?

Handing the car back voluntarily, or simply not resisting, does not clear the debt. The lender still sells the vehicle, and you are still generally liable for any shortfall afterwards. Voluntary surrender changes who does the work, not who owes the money.

It can also be recorded on your credit file, which affects borrowing for years afterwards. If you are considering this because you cannot keep up the payments, speak to a financial counsellor on 1800 007 007 first — hardship arrangements, a variation to the contract, or selling the car yourself for a better price than an auction will fetch are often better outcomes than surrender.

Build your complaint with FairClaim

FairClaim is a free-to-start tool that walks you through your situation question by question (or in a guided conversation), checks your facts against the National Credit Code, and produces a professionally structured complaint you can lodge with AFCA yourself.

Frequently asked questions

Related guides

• Can You Get Your Car Back After It’s Been Repossessed?
• How to Avoid Car Repossession in Australia
• How to Lodge an AFCA Complaint About a Vehicle Repossession
• Phone or Internet Problem Your Telco Won’t Fix? How to Complain (TIO)