By Helga Buck - November 21, 2012
What happens once a vehicle has been repossessed, and the proper notifications made to the buyer and co-buyer of your intent to resell, and the customer has failed to redeem the vehicle?
At this point, the answer depends on your intentions toward the customer’s deficiency balance. If you intend to take the balance as a loss on your bottom line, you are free to resell the vehicle in any manner you choose. However, if you intend to pursue the buyer/co-buyer for the deficiency balance, you’re going to need to reduce their deficiency balance by the actual cash value (ACV) of the vehicle (which is determined at time of resale, if reselling to an auction), because you can only recover from them their balance at the time of repossession, plus your expenses (repo, storage, etc.), less the proceeds from the resale.
As state laws vary, you can check in with your state’s independent dealer association for additional information on how to properly handle the resale of repossessed vehicles in your state.
ABCoA is a Software-as-a-Service company dedicated to the subprime industry. Our cloud-native ecosystem handles every part of business operations - improving productivity, security and accuracy, while consolidating vendors and reducing costs.
Since 1983, ABCoA has helped buy here pay here used car dealerships and subprime finance companies eliminate duplication, remain compliant, and achieve success with complete, customer-driven software and dependable support. Customers properly using Deal Pack have never lost an IRS audit.
Recently awarded Top Online Accounting Software for Deal Pack, ABCoA continuously elevates the standard for software in the subprime industry and helps customers grow through our commitment to quality, innovation, and service. Headquartered in Jacksonville, Florida with employees across four states, we remain family-owned and operated.
To learn more about ABCoA, visit www.abcoa.com.
Request a Demo