A friend of mine who recently had her car repossessed, was notified today via certified male, that her car was being sold to a private party, and did not disclose the time, date, nor location of the sale. Aren't they required to sell this at public auction? and, are the still supposed to tell her how much they got for the car.
Mail, male LOL. I always thought they had to sell it at auction, or at least inform the public or you(the person it was repo'd from) of ALL the details. I wonder if it is different from state to state?
I have told ya'll before, my hubby is a car dealer, so I know a little bit about this. No they are not required to sale it at auction, as a matter of fact, my hubby has some contracts w/ some financing companies around town to do all of their repossessions and consignment. nine times out of ten they will give my hubby bottom dollar that they will take for the vehicle, he will then either try to run it through the auction (if the vehicle will not bring what they are asking for) or if he thinks the vehicle will bring, he will buy the vehicle (keep in mind paying their bottom dollar) and then turn around and sell the car for profit. Yes what the vehicle sold for has to be disclosed, no it does not have to be disclosed where it is selling, only requirement by law is the owner has 10 days to redeem the car before it can be sold, after that 10 days, the car is technically not yours anymore. I know people might not like to here all of this but I am being honest.
Jrjr35, I am not stealing your post, but: Tnobles, Thank you for clearing that up for me. I didn't even think about a dealer. After reading the question, I started looking around, and couldn't find anything. About your post, honesty is good for the soul ;-)
Something else you really don't want to hear, their bottom dollar is usually 1/4 of what the car could retail for. Their goal is just to get out from under the car quick, and then you will be charged the balance.
...SO you get 3/4 less than you should have because they kept it PRIVATE??? So you owe $10,000...they sell it for $2,500...you owe $7,500 more... If they AUCTIONED IT...maybe it would have sold for $7,500-$9,000??? I GUESS THE BANK/DEALER DOESN'T CARE...THEY WILL EVENTUALLY GET ALL THE MONEY ONE WAY OR THE OTHER...(even if they take a TAX LOSS)...
I don't get this tax loss... That doesn't mean they get their money back, it just means they don't have to pay income taxes on that amount..... I always have trouble trying to explain this to my wife...
No it would more than likely get less at the auction. My husband will only take it to the auction if he does not want to pay bottom dollar. Then it is on their head if they want to sell it for less. A car will especially sell less if the dealers KNOW it is a repo b/c they know that the financer is usually desperate to get out fom under the car. And will take the high bid. So they bid low. Now this is not always the case some cars will hold their own. For instance Honda's, Nissans, SUV's
george for instance I own a 00' eddie baurer explore, the truck is worth about 12,000. my hubby bought it the auction for 4,500. It was a repo
My BANK has sold some REPOS in the parking lot closer to RETAIL PRICE... THEIR JOB IS TO GET A LITTLE AS POSSIBLE...NOT AS MUCH AS POSSIBLE???
No you are right in the case of bank's sometimes they will hold out for the most they can get. But usually a smaller bank or a financing co. has to recover their losses, they cannot afford to hold out for the retail value, so they get rid of it the best they can, and try to recover the rest some other way. Same as a trade in. My hubby also does appraisals for some local dealerships. you want to know how they determine how much you are going to get on a trade-in? when you go to trade your car in, their will be appraisers their to bid on your vehicle, who ever gives the highest bid, will be what they give you. Then they tack on a bunch of other fees, in small print of course, cleaning fee's (which you can believe when my husband gets trade-ins they are NEVER cleaned by the dealership) etc.
tnobles, I've been informed that you are incorrect about only getting 1/4 of what the car would retail for. At least in our state, the law says that the vehicle must be sold in a "Commercially Reasonable" manner. Which means if they take considerably less than the fair market value for the car, they may lose any rights to a deficiency judgement. I was also told that they will try to get the best price for the car, because, the chances of collecting anything on a deficiency judgement are close to nil. I appreciate your input though.
I know that my CU would try to sell the repos for higher than book value. I would always wonder why the cars in the parking lot at the CU were always so expensive. GEORGE, EMAIL ME, I want to discuss this 'WRITE OFF' thing.
