repossession resale

[farmerman96]

So I have done a lot of reading, to include state statutes, and can't seem to find an answer to my question.

 

for Arizona regarding repossession, Administrative code 17, chapter 5 section 407, it states "A lienholder may sell a repossessed vehicle" but nowhere states that it must be resold. DriveTime repossessed my vehicle through a voluntary repossession but I never received a notice of sale and according to the law since I payed over $500 there would have to be a public notice of resale right? The amount reported on my cr's are identical to the amount owed at the time of repossession, not a dime more or less. This happened back in 2010 and I don't know how to see if they resold it.

 

Any and all info/feedback is appreciated as always

[DiamondDan73]

You could run the VIN

[farmerman96]

I guess I should have mentioned that I lost all of my documentation regarding the car over the subsequent 3 moves including from Nevada to Alaska. I know, stupid...

 

Any idea of how to get it?

 

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[javamiester]

Check online with your automobile insurance company. They would have a record of your VIN and you can take it from there...

Edited May 10, 2013 by javamiester

[farmerman96]

Thanks Java, never thought of that. Can anyone speak to whether the car must be resold or whether if it is resold that the amount it was sold for must be applied to the balance owed?

 

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[Clydesmom]

The way I have read most if not all repossession laws is that they are written on the assumption that the debtor either redeems the repo or the lender sells it and the legal requirements for both situations.

 

I can't imagine a lender not reselling the vehicle because not doing so is a major financial drain. If they do re-sell the car they must apply the proceeds to the balance owed. This is where many borrowers get into trouble. Typically the cars are sold at auction for a fraction of their value and what they are sold for has NOTHING to do with the amount owed by the borrower who was repo'd. The lender is not required to get maximum value for the car only to sell it according to the law. Many borrowers end up with a large deficiency balance due to the low sale price at auction and if they are upside down in the loan it is even worse.

[Polaroy2]

I can tell you right now, most of the cars at auction sell way below blue book price. Having a side gig of buying cars at auction for resale is AZ, I typically don't pay more than $3K, and I rarely see bids go past $5K. There is an occasion where the the bid doesn't meet the minimum set by thebank, but those are pretty rare too. Most of the time, its whatever they can get for it.

Edited May 10, 2013 by Polaroy2

[cv91915]

I can tell you right now, most of the cars at auction sell way below blue book price. Having a side gig of buying cars at auction for resale is AZ, I typically don't pay more than $3K, and I rarely see bids go past $5K. There is an occasion where the the bid doesn't meet the minimum set by thebank, but those are pretty rare too. Most of the time, its whatever they can get for it.

Another reason to flush your Kelly Blue Book down the toilet. It's a joke.

Edited May 10, 2013 by cv91915

[farmerman96]

I owed 8500 so really anything it sold for would be beneficial. Polaroy, this was in Tucson coincidentally. So still no one that might be able to speak as to the requirements to auction or if it was resold by the dealer if that money must be taken off of what I owe?

 

I appreciate the feedback but am curious about the legal side

 

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[farmerman96]

Hey clydesmom, sorry I didn't see your post when I replied earlier. I know that they auction it and the remaining balance would then be my responsibility but there is no difference between what I owed at the time of repossession and what is on my credit.

 

I guess I am looking for advice on how to approach this. I'm going to try to get the vin from my insurance company and see if its been sold but then how might I proceed?

 

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[HERE WE GO !!!]

Now remember once they repo the car there will be a repo fee and possibly attorney fees. Did you take the car to them or did they come and get it ?

 

Once you add the additional fees it may look like they didn't give you credit for selling the car. They would have sold the car for wholesale probably at an auction but it has to be a fair price.

 

Good luck. I hope you can get this rectified soon. Don't let it drag on for years because it will just cost you more money.

[farmerman96]

They came and got it per their request. I would be very disappointed if they made their fees match the sale price of the car.

Still not sure where to start with getting it fixed... any ideas?

 

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[farmerman96]

I guess I should also mention that I got the vin today and got the history report which shows it was re registered shortly after it was repossessed so should I dv the OC which still owns the debt or verify through the CRAs?

 

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[Polaroy2]

 

I can tell you right now, most of the cars at auction sell way below blue book price. Having a side gig of buying cars at auction for resale is AZ, I typically don't pay more than $3K, and I rarely see bids go past $5K. There is an occasion where the the bid doesn't meet the minimum set by thebank, but those are pretty rare too. Most of the time, its whatever they can get for it.

Another reason to flush your Kelly Blue Book down the toilet. It's a joke.

Well, to be fair to KBB, this type of "sale" doesn't quite meet their definition of "private" or "trade-in" value, because no matter what the car is actually "worth", the auction house is going to sell it to the highest bidder.

[Clydesmom]

They came and got it per their request. I would be very disappointed if they made their fees match the sale price of the car. Still not sure where to start with getting it fixed... any ideas? Sent from my LG-P509 using Tapatalk 2

 

It may not be that they matched the fees to the sale of the car. There is the repo fee generally around $300, the tow fee ~$250, storage fees until it goes to auction ~$20 per day (depending on state law that could be as long as a couple of weeks), and then they sell it at auction for a couple grand. If you owed 5,000 when it went back and they had to add $800 in fees and the car sold for very little at auction you might not see a difference in what they report.

 

It could also be that they have not updated the TL since it went to auction either.

[ICANHASMUNY?]

possibly there was surplus, not a deficiency?

 

read all tite 47 Article 6 - http://www.azleg.gov/ArizonaRevisedStatutes.asp?Title=47

 

 

There's a number of sections that may be applicable.

 

47-9620. Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral

 

 

E. A secured party that has taken possession of collateral shall dispose of
the collateral pursuant to section 47-9610 within the time specified in
subsection F of this section if:

1. Sixty per cent of the cash price has been paid in the case of a purchase
money security interest in consumer goods; or

2. Sixty per cent of the principal amount of the obligation secured has been
paid in the case of a nonpurchase money security interest in consumer goods.

F. To comply with subsection E of this section, the secured party shall
dispose of the collateral:

1. Within ninety days after taking possession; or

2. Within any longer period to which the debtor and all secondary obligors
have agreed in an agreement to that effect entered into and authenticated after
default.

G. In a consumer transaction, a secured party may not accept collateral in
partial satisfaction of the obligation it secures.

[Why Chat]

So I have done a lot of reading, to include state statutes, and can't seem to find an answer to my question.

 

for Arizona regarding repossession, Administrative code 17, chapter 5 section 407, it states "A lienholder may sell a repossessed vehicle" but nowhere states that it must be resold. DriveTime repossessed my vehicle through a voluntary repossession but I never received a notice of sale and according to the law since I payed over $500 there would have to be a public notice of resale right? The amount reported on my cr's are identical to the amount owed at the time of repossession, not a dime more or less. This happened back in 2010 and I don't know how to see if they resold it.

 

Any and all info/feedback is appreciated as always

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