How to retrieve bank repossessed cars in the Philippines

Updated Mar 13, 2023

Your car has been repossessed by the bank? Here’s all you should do.

Repossessing your embargoed car is not easy, but not so easy to understand process that takes time to understand. Knowing the ins and outs of how to retrieve bank repossessed cars in the Philippines will be a lot of help.

1. What laws allow banks to repo-car your car

As if in a nightmare that happens when your new car is towed because of a late payment, something that is inconvenient! Having been repossessed by the creditor bank and you’re wondering what happened. Do you call a lawyer or do something else, it becomes confusing what to do?

repossessed cars philippines 2018

Repossessing your embargoed car is not easy, but not so easy to understand process that takes time to understand

The probable cause is that the one owing the bank hasn’t understood how the obligations must be paid in full and on time. Here are some facts that should be understood about the process, and later how to repossess your car from banks.

1.1. Any car when the conditions of the loan are breached will be repossessed by banks! Late monthly payments are cause for repossession when penalties add up. No notice is needed to repossess any vehicle by repo men.

1.2. Cars can be taken from premises or anywhere it can be towed away. Although it must be peaceful and without incident or else it's trouble for them. The creditor bank and their repo men trying to repossess your car will be at fault and pay damages if they are disturbing the peace.

1.3. All repossessed vehicles are sold at a public auction, and the owner will be informed of it. Should the owner want to repossess it, then all arrears must be paid in full no less. But banks must do this as part of the process.

repossessed cars auction in the philippines

All repossessed vehicles are sold at a public auction, and the owner will be informed of it

1.4. One of the nastier rights of creditor banks issuing the loaner, taking any property that is equal to the balance and demand payment. This is a double whammy for the owner of the repossessed car, but the creditor bank will still get the balance. One consideration for the loaner is that the court must agree to the terms of payment, though not very significant this condition is important.

1.5. All this nastiness can be avoided if the loaner will decide with the creditor bank for better terms. Repossessing any unpaid car is laborious and a hassle, so an agreement that serves both parties will be better in the long run!

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Here are the conditions that allow repossessing your car, but knowing this will help to repossess your car should it happen.

2. How to avoid repossession of your precious car

Acquiring car loans isn't easy, many banks will have good terms for borrowers with good financial standing and reputation. But before making that step, then some things need to be gone over and to avoid having repossession happen to them.

2.1. Make sure that all finances are fit and any sudden change will make paying the monthly fee hard to do. Financial show-offs will have problems later due to unforeseen troubles, better be realistic about current finances.

car finances

Make sure that all finances are fit and any sudden change will make paying the monthly fee hard to do

2.2. Choose the best auto loans that have better terms for the loaner and with more leeway in payment terms. Go over the conditions and shop for the best terms and within a manageable budget, don’t go over it! You’ll pay in spades and lose more than your car!

2.3. Once you’ve decided on the best terms, contact professionals who can find the terms wanted. A fat wallet with lots of credit cards and cash is not enough, getting the best deal will allow every penny to count!

2.4. Follow the agreement to the letter and pay on time also keep updated on finances, to contact the creditor bank should the obligation be compromised. Don’t wait till it’s too late to more, because I will mean bank trouble. Compared to other annoyances, a bank is the most gnarly and annoying problem for financial concerns.

2.5. Just opt for what you can afford and avoid loan problems altogether if it can’t be complied with! Simply means with funds for a loan, goodbye new car and hello old car!

Practical and simple advice to follow and will avoid any repo trouble for anyone. Read on and know a bit more on how to bring home a bank repossessed car better.

3. Steps to take for retrieving bank repossessed cars in the Philippines

If you want to repossess your car you’ll need to do these steps and see if recovering the auto is worth it. Let’s go over the steps which are part of the process, to decide much better!

3.1. Identify the reason it repossessed by the bank which could be a mistake by them, which means damages must be given to the owner of the unit. A lawyer can arrange how to collect damages and a chance for better terms too!

3.2. Any personal items should not be taken by anyone connected to the bank, should something be unaccounted for like gadgets which will mean trouble for the banks not for the aggrieved auto owner.

3.3. If you’ve decided on repossessing your car, whatever the option is chosen with several courses of action to take!

  • Pay all the fees that are needed to redeem it before it goes on the auction block and inform the bank of your interest. Be prepared to make a bid because more than one person might be interested in acquiring the car
  • Resume the loan again by paying the balance, repossession, and storage fee that the bank will happily heap on you. Do this and despite the extra expense which will get your repossessed car back where it belongs.
  • Buy it back at cost and outbid the others because the car is dear to you, no other thing matters. Not the wisest of choices but that’s still an option.

car loan

Pay all the fees that are needed to redeem it before it goes on the auction block and inform the bank of your interest

3.4. To keep or not keep the insurance policy when before the car got embargoed. You’ll need it when repairs need to be done on the repossessed car, but if the car will be abandoned then end the policy. A repossession will not be good because of a higher rate and will reflect as undesirable credit which is a big negative!

3.5. If the car cannot be repossessed then move and try to improve your credit records better than before. You’ve got much to gain than a repossessed auto which is much trouble for anyone in this predicament.

Does this clear up the steps to repossess your car and take proactive measures on recovering it? We're not done yet, and we've got more topics to cover.

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4. Best way to get financing once car is retrieved

If you’ve repossessed your car then it is a good thing, now looking for financing will prevent it from getting repossessed again. Here’s what to do and how to go about it.

  1. Pay up everything that you owe to the last cent, so chances on another car loan are better than getting denied it. Having unpaid debts and arrears is not good for anyone, especially when acquiring loans when needed.
  2. Lie low for a year or more, before applying for another car loan because banks will find out how financially fit their clients are.
  3. Save on the next loan for only what can be afforded, no more or less which led to having a repossesses car anyway. Spend on what is realistic to maintain regular payments without stressing too much!
  4. Maintain a low balance credit card for a certain period and with a sizable cash deposit for surety purposes, for the creditor of the loan. That improves bad credit history on anyone’s credit record as well.
  5. Never forget to keep documents ready and credit records, as a matter of fact, keep it transparent and nothing to hide! This is the last step which may facilitate financing for any repossessed or new auto that you’ve got in mind.

car finance philippines

Looking for financing will prevent bank repossessed cars from getting repossessed again

These last steps are what’s needed to keep your auto or opt for a newer one? Recovery of the auto was accomplished so this will help it from repossession again.

5. Bank repossessed cars in the Philippines: Conclusion

Did the explanations and steps jive together and did it help in learning about it. When mentioning bank repossessed cars, it does not mean no remedy is possible because there are steps to take! Next time we’ll know better than be the mercy of a bank repo and can repossess our autos back. Don't forget to visit for more useful tips and advice on car buying and selling, car maintenance as well as safe driving.

Norjan Ismail Abbas

Norjan Ismail Abbas


Norjan enjoys writing about various topics, and car is among them. Don't ever ask him which his most favorite car is since he has none. He believes each car is beautiful in its own way.

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