Can Your Car Be Repossessed If You Miss Payments?
Yes, if you miss vehicle finance payments, the credit provider may eventually repossess the vehicle after following the required legal process, which includes a Section 129 notice and, where applicable, court proceedings. Acting early — before legal action advances — generally gives you more options to keep the vehicle, including debt review where appropriate.
Key Points
- Missed payments can lead to repossession after the legal process.
- A Section 129 notice is required before legal action.
- Acting early preserves more options.
- Debt review may help if entered in time.
This article provides general consumer information and is not legal advice. Individual circumstances differ. If legal proceedings have already started, obtain advice relevant to your specific circumstances.
The repossession process
Vehicle finance is a secured credit agreement, meaning the vehicle is the security for the loan. If you default, the credit provider must follow the legal process — typically a Section 129 notice and then court proceedings — before repossessing the vehicle. The vehicle cannot simply be taken without due process.
However, once the process is complete and a court authorises repossession, the vehicle can be removed and sold to recover the outstanding balance.
How to protect your vehicle
The most effective protection is to act before legal proceedings advance. If you are struggling to meet the instalment, contact the provider and consider a financial assessment. If you are over-indebted across multiple accounts, debt review may restructure the vehicle payment and restrain repossession while payments are maintained.
Once a court has authorised repossession, options become much more limited.
What if repossession has already been threatened?
If you have received a Section 129 notice or summons regarding your vehicle, contact a debt counsellor immediately. If debt review is entered before judgment, the vehicle agreement may still be included in the restructuring.
Do not wait — the window to act may be short.
Frequently Asked Questions
Worried That Your Debt Has Become Unaffordable?
Debt Guidance can assess your income, essential expenses and debt commitments to determine whether debt review may be appropriate.
Reviewed by Carolina Guevara Harris
Registered Debt Counsellor · NCRDC3152
Last updated: 17 September 2025
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