Reselling the car - Once your car has been repossessed, your creditor can decide to keep the car as compensation for your debt or to resell it in either a public or private sale. Under most state laws, your creditor must tell you if it wants to keep the car because you have the right to demand that the car be sold instead. Check with your state consumer protection office to learn what the laws are in your state.
Any resale of a repossessed car must be conducted in a "commercially reasonable manner." This does not mean that your creditor must get the highest possible price (or even a good price) for the vehicle. A resale price that is below fair market value, however, may indicate that the sale was not commercially reasonable. Failure to resell your car in a commercially reasonable manner may give you either a claim against your creditor for damages or a defense against a deficiency judgment. |
