you are correct I think that law is effective in all states but the who do you think regulates that? do you think a bank is required to sit on a repo b/c it does not bring what the consumer wants it to bring. No. reasonable, is what the market calls for. Hell my own hubby had one repo'ed a couple of years ago (is'nt that bad a dealer has one repo'ed? lol!) anyway, in 98' he bought a 99' eddie bauer exp. put 10,000 down paid on it for one year, transmission went out, dealership would not honor the warranty, the truck was worth about $19,000 they (mazda american credit) sold it at auction for about 7,500 left hubby to pay the ramainder, he of course has not, they turned the balance over to ford motor credit, therefore they are no longer at loss on the truck
jrjr, If you go to www.lawdog.com and click on state laws by state, then your state, it will link you to your state's repo laws and UCC. The process and procedures vary by state. Here, it is any commerically reasonable process. Sassy
Here's the form and notice required, the notice is dictated by statute and can't deviate except to add addtional information at the end: NOTICE OF OUR PLAN TO SELL PROPERTY [Name and address of any obligor who is also a debtor] Subject: [Identification of Transaction] We have your [describe collateral] , because you broke promises in our agreement. [For a public disposition:] We will sell [describe collateral] at public sale. A sale could include a lease or license. The sale will be held as follows: Date: Time: Place: You may attend the sale and bring bidders if you want. [For a private disposition:] We will sell [describe collateral] at private sale sometime after [date] . A sale could include a lease or license. The money that we get from the sale (after paying our costs) will reduce the amount you owe. If we get less money than you owe, you [will or will not, as applicable] still owe us the difference. If we get more money than you owe, you will get the extra money, unless we must pay it to someone else. You can get the property back at any time before we sell it by paying us the full amount you owe (not just the past due payments), including our expenses. To learn the exact amount you must pay, call us at [telephone number] . If you want us to explain to you in writing how we have figured the amount that you owe us, you may call us at [telephone number] [or write us at [secured party's address] ] and request a written explanation. [We will charge you $ for the explanation if we sent you another written explanation of the amount you owe us within the last six months.] If you need more information about the sale call us at [telephone number] [or write us at [secured party's address] ]. We are sending this notice to the following other people who have an interest in [describe collateral] or who owe money under your agreement: [Names of all other debtors and obligors, if any] 4. A notification in the form of paragraph 3 of this section is sufficient, even if additional information appears at the end of the form. (end of form) I've a great link, it is Arizona specific but explains the process with the statutes. It is my understanding that most states are similar but the details of the process and procedures can be tweaked and that a lot of the time the proper procedures aren't followed. Anyway, it helped me to understand what should have happened: http://www.doney.net/dp&s_car.htm Sassy
very good info sassy. in my state anyway, states reasonable, unless property is value will decrease, which cars do everyday, with every mile.
like I said do you think if a bank takes a car to the auction the car is worth 20,000 high bid is 8,000 they cannot sell it b/c to you or I think the vehicle is worth more even though tommorrow the car will probably bring even less. Another thing to consider is the car business is seasonal, now through Jan cars are not worth squat but come tax time they are worth gold
sassy that is not the case where I am at. All my hubby has when he sells a repo'ed car is an 'affidavit of sale under lein' the co. who holds the lien of the vehicle does not even know where or how much my hubby sells the car for, much less does the owner of the car. like I said the owner has 10 days then the lein holder can do whatever they want w/ it, Also tons of fees are added. My hubby charges repo fees, storage fees, cleanup fees etc. etc.
Well tnobles, If the car company wants to cut off their nose to spite their face, and take alot less than the car's worth. so be it. She has no assets, no job, she's a student. If they want to take a hit let them. If the can make it back from a tax write off, all the more power to them, doesn't affect her any.
Nodding tnoble, It's commercially reasonable, reasonable is as reasonable does I guess, LOL. I just got a 2002 Honda Accord, zippyyyyyyyy cute lil thing it is! Anyway, I believe the estimate I had at the time of purchase was 15%, a 15% loss just for driving it off the lot, what is that 2 minutes? 3 tops? Sassy
jrjr, like i stated earlier ya'll were not going to like what I said, I am just stating the facts as i know them in this state. Again I am just being honest, I am not saying it is right, do you think my hubby was happy when it happened to him?
sassy you did good cause like I stated earlier, Honda's hold their own. I've been wanting an Expedition, but I told hubby last night I would take an accord. He laughed and said, if we can't afford an Expedition, what makes you think we can afford an Accord?
tnobles, I didn't dislike what you said. I also was stating a fact, Why would we care what the car company gets for the car? If she had anything they could take it might be a different story, but they can't get blood from a turnip.
you are right. I am not disagreeing w/ you at all my hubby is still paying for his to this day, now he is dealing w a repo on his credit reports, after losing 10,000 that he put down, 1,600 he paid for an extended warranty (that they did not honor) the truck, and now he has to deal w/ bad credit b/c they were total asses about it. If they had honored the warranty to begin w/he would not have had to turn the truck in. So in the end, we are the ones that got screwed, not Mazda. They got the final laugh. I do not believe it is right, I think it stinks.
THAT IS WHAT I THOUGHT ALSO...(try to get as much as possible for the car...NOT 1/4...) BUT I'M TIRED OF BEING SHOT DOWN...(BUT I have NEVER had a car loan to default on, either)...
George I did not say that was standard, no they do not go out and only ask for 1/4 of the car, OF COURSE they are going to try to recoop as much as they can, what I am saying is right now cars are going for about 1/4 of the retail value like I said earlier the car business is seasonal. Now thru jan cars are worth squat, come tax season they will bring gold. For instance hubby just got back fm auction, a 2001 chev. malibu only brought 1,500. Do you think that car is only worth that much, I think not, but he has the option to sell, which of course he did not. But financing companies and banks are not in the business of selling cars, they are in the buisness of financing them. If a bank had a high default rate, how are they going to profit by not selling a car that they HOPE to make more on some time in the future?
you asked a question, can they do this I answered honestly. Yes they can, so why get upset w/me b/c you do not like the answer. I will not try to defend the way banks or financing cos. work I will just try to explain it. And p.s. what is this we stuff? If she is your friend why would you not care if it was going to ruin her credit.
BTW fair market value is the key words here, in other words what is reasonable to the market at the time of sale, which at this time of year is about 1/4 of the retail value.
