Auto Value After Repo

[ramfan98]

My question involves an auto loan or repossession in the State of: illinois


do the courts assume the value of a vehicle that is repo'd then sold equal to the deficiency owed?
the reason why i ask i owed about 10,500 when my car was repo'd and they sold it for 950.

[jk]

no, you would likely owe the balance of the loan after subtracting the sales price and adding whatever fees they get to toss on.

While an auction price is typically less than what is considered fair market value, a discount of over 90% is extreme unless there was a lot wrong with the car. Had it been in a wreck or something?

[Mr. Knowitall]

If the vehicle is sold in a manner consistent with the law, the value obtained through the sale is all that will be credited toward the balance you owe. Lots of people are upside-down on their vehicles.

Typically, repossessed cars are sold at a dealer's auction and sell at wholesale prices.

You were presumably notified in advance of the disposition of your creditor's intention to sell the vehicle, and of your rights of redemption.

(a) Disposition after default. After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.

(b) Commercially reasonable disposition. Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one or more contracts, as a unit or in parcels, and at any time and place and on any terms.

(c) Purchase by secured party. A secured party may purchase collateral:

(1) at a public disposition; or

(2) at a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.

(d) Warranties on disposition. A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.

(e) Disclaimer of warranties. A secured party may disclaim or modify warranties under subsection (d):

(1) in a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or

(2) by communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.

(f) Record sufficient to disclaim warranties. A record is sufficient to disclaim warranties under subsection (e) if it indicates "There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition" or uses words of similar import.

[ramfan98]

the vehicle did need some work however it was still a running and driving car. i would estimate about 500 dollars. it also had about 45k miles under the industry average.

The vehicle was in their possession for over six months before they sold it. They send me a letter stating "the vehicle will be sold on or around 1/28/2011". The date of sale was actually 3/31/11, are they required to send me a notification stating the new sale date?

[shelbydakota]

No. Presumably, the dealership put a reserve on the car and after several attempts realized they would not get the amount they were looking for. Just because you owed 10500 on it, does not mean it was worth that. If you bought a used car, the odds of it being worth very much are against you. What year/make/model? and mileage?

[ramfan98]

No. Presumably, the dealership put a reserve on the car and after several attempts realized they would not get the amount they were looking for. Just because you owed 10500 on it, does not mean it was worth that. If you bought a used car, the odds of it being worth very much are against you. What year/make/model? and mileage?

The vehicle was a 2000 VW jetta GLS. So I am assuming that I have no defense in this case?

[shelbydakota]

None. The avg auction price for that in my state is about the same as what they got for it. You must realize that even though it is a VW, it is also an 11 year old car with probably at least 120,000 miles on it. VWs are extremely expensive to fix which is also why it would have gone for less if it did need some work, running or not.