The auto lawyer explained when the bank has the right to take the car and how to avoid this.

      April 24, 2026 13:54 Society The share of overdue auto loans in Russia has exceeded 6% for the first time since 2021. More and more borrowers are struggling to make payments on cars purchased on credit. In what cases can a bank seize a car for debts and how can this be avoided?

      How overdue auto loans reached record levels

      According to the credit history bureau "Scoring Bureau," in March 2026, the share of overdue debts on auto loans amounted to more than 6% of the total volume of loans issued by banks for the purchase of cars. The total amount of such debts reached 213.1 billion rubles with an overall loan portfolio of 3.52 trillion rubles. Over the past two years, the volume of problematic auto loans has grown faster than the overall loan portfolio.

      Interestingly, the total volume of issued auto loans increased by 1.19 trillion rubles (51%), while the volume of overdue debt grew by 2.5 times. As a result, the share of overdue debt in the portfolio rose from 3.62% to 6.05%.

      The General Director of "Scoring Bureau," Oleg Lagutkin, noted in an interview with RBC that the increase in overdue loans is related to the introduction of deferred secured loans, which began to be issued in October 2023. Borrowers received money to purchase a car and then transferred it as collateral. According to him, this turned the auto loan into a regular consumer loan with a higher level of risk. Banks revealed this scheme only after a year and stopped issuing such loans.

      How to lose a financed car

      When taking out an auto loan, the purchased car automatically becomes collateral for the bank or microfinance organization. This gives the lender assurance that the borrower will fulfill their obligations. Igor Semyonovsky, an associate professor at the Department of International and Public Law of the Financial University under the Government of Russia, reminded in a conversation with 360.ru that banks do not seize the car for one or two missed payments, as this is not profitable for them.

      However, if small payments are systematically missed (three, four, five or more times), accumulating the total debt to a high amount and not contacting the lender, the likelihood of foreclosure on the collateral — the car — is high. Igor Semyonovsky explained that the lender initiates the procedure if the overdue period exceeds three months and the total amount of the unfulfilled obligation exceeds 5% of the car's value. If at least one of these conditions is not met, the car remains with the borrower.

      The procedure for seizing the vehicle can occur in two ways. The first is through the court, but this is a complicated and costly process. Therefore, banks usually specify in contracts an out-of-court procedure for seizing pledged property with the help of a notary's executive signature, allowing the lender to immediately contact the Federal Bailiff Service.

      How to solve the problem of overdue auto loans

      If the debt exceeds 5% of the car's value and more than three months have passed, the borrower needs to contact the bank or microfinance organization to resolve the issue. Igor Semyonovsky advised to "buy time" through dialogue with the lender: attempts at restructuring or refinancing the debt, forming a new payment schedule, deferrals, or other changes to the contract terms.

      He added that under certain conditions (a drop in income of 30% or more, living in an emergency zone, mobilization, and others), the borrower may receive a credit holiday — a temporary suspension of payments without penalties and without being recorded in the credit history. The amounts for taking a holiday range from 100,000 to 1.5 million rubles and are established for various types of loans, including auto loans, mortgages, consumer loans, credit cards, and others.

      If none of the options are suitable, the debtor can use the bankruptcy procedure through the court or an out-of-court method depending on the amount of the debt and life circumstances.

      What to pay attention to before taking an auto loan

      Igor Semyonovsky noted that before taking out any loan from a bank or microfinance organization, it is necessary to consider one's financial capabilities and the total burden, including current payments and other financial obligations. It is also important to have a financial safety cushion.

      "As a rule, when taking an auto loan, banks will require the purchase of CASCO insurance — this is an additional financial burden on the debtor. It is also necessary to consider that while the loan is not fully repaid, the means of fulfilling the loan obligation — the car — remains pledged to the bank," the expert emphasized. He stressed the importance of carefully studying all the terms of the contract. This will help avoid hidden fees and additional obligations that may increase the debt burden.

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