How Car Repos Work Most repossessions generally follow a similar process, including multiple steps and different outcomes of what happens when your car is repoed.
The Aftermath of Repossession
After a car is repossessed because the buyer stopped making payments, there are different ways that at lender can handle it. The most common routes are:
Auction Sales: Many repossessed cars are sold at public auctions. Attracting buyers Some of these auctions are also attended by a mix of dealers and private individuals who make any difference back to the defaulters on account. The auction mechanism is a way that lets the lenders recuperate at least some amount of money easily12.repossession (ad)
Private Sales — Lenders may also engage in private sales, which are typically less rigid than a public auction. Here, the car is directly sold to a buyer—and often times through an agency. Car Reposession Sale: The repossession sale must be done in a way that justifies the lender type of fair value for your car 1.
Physical auction: A live auto auction, often called a “physical” or brick-and-mortar dealer-only sale gathered around the block from you. This method usually equates to faster sales yet lower prices in contrast to public auctions3.
Legal Considerations
Specific legal frameworks abound with respect to the process of repossession and subsequent sale. Under UCC § 9609, lenders need to notify borrowers before they can sell the repossessed cars. This notice usually contains information about the intended sale and provides an opportunity for the borrower to reclaim his vehicle before it is sold1.
Conclusion
To sum it up, post-repossession a vehicle is available for sale depending on how the financial institution disposes of their repossessed vehicles-band through public auctions or even private sales. While there are benefits to each method, neither Lafayette parish nor Carey did enough homework in abiding by state law. With this knowledge, borrowers can better manage the ins and outs of car repossession.
