How do banks or auto dealerships expect a person to pay off the remaining balance of a reposessed vehicle ?

How do banks or auto dealerships expect a person to pay off the remaining balance of a reposessed vehicle ?

if reposesses the vehicle..how does the bank or finance company expect the person to pay off the remaining balance of the vehicle? and which percentage of the time..do they sell the vehicle at auction for a fraction of what it is worth? (why they do this too? and which percentage of the time do they just put it on their car lot and sell again as used ? why not do this?)please explain what you canand out of curiousity , if you know,,how this differs between Britain and the USA and why?thanks for your answers!

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The auto dealership does not personally repossess your vehicle- it is the bank or lender that you got your loan from that repossesses your vehicle.The reason why you are expected to pay off your balance is because you signed a contract stating that you will pay for the vehicle, its a responsibility that you took on.. I know some people don't believe that a contract is permanent but in the end it is binding...... the same reason of if you total your car in an accident you are still expected to pay the remaining balance.. for that you can protect yourself and buy GAPP insurance.Unfortunately, there is no insurance for not paying your car note.Also a side effect for this repo is a 7 year mark on your credit score which turns your score into crap..all in all pay what you promise to pay.Source(s):I work at a car dealership.

ibu

Repo'd cars always sell for far less than retail sales prices because they are repos. People who haven't been making their car payments likely started neglecting routine maintenance (oil changes, tire replacement, etc) long before they got behind on the car loan. Also, lenders have lots of govt regulations, so they must sell the vehicle they repossess quickly, which means it has to go to a wholesaler or auction. And they are lenders, not car dealers, so they have no dealer lot, no auto dealer license, etc. Lenders cannot sell at retail by law (no retailers licensing) or within lenders' financial regulations! They cannot keep waiting for their money & still meet govt requirements for lenders.You owe, by law, the difference between whatever they can get for the vehicle and whatever you owe for the original loan, plus interest, late charges & other penalties, collection costs, repossession fees, etc. They expect you to pay the same way they expected you to pay when you signed the contract to pay!There may be some slight differences in details between UK/US, but it is pretty much basic contract law from the same common law heritage. Lenders, e.g. people who put up the money for you to buy a car from a licensed car dealer, do not have retail sales licensing, and retailers do not have the legal (or financial!) ability to lend. Even GM, Ford, etc, have separate companies to finance leases and/or sales of vehicles from their dealers.Govt has its hand in everything, in every possible pocket - licenses are basically taxes! And they require different kinds of licenses and rules and fees for different kinds of activities. At least 4 different, licensed, regulated business operations are paying separate licenses, fees, taxes to sell you a car, finance your car, collect your unpaid loan, and repo the car. Get it?

FBI

1. The vehicle is sold at auction, not retail.2. They don't care how. They'll sue you and garnish your wages if necessary.

R

if you paid you promise to the bank or dealership in the first place,the car would not have been repossessed in the first place.resale is inevitable to get some money back,if not all. they know that the person they trusted isn't honorable enough to do it.

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