2. Repossess the vehicle Once the specified time to pay has passed and payment still not received, you may proceed to repossess the vehicle under the following rules:
- Breach of the Peace (BOP): Repossession is prohibited if it leads to a breach of peace (BOP). This means you cannot use force or violence to repossess the car, and you cannot repossess it if it is in the possession of a third person who reasonably objects.
- Private Place: You may repossess the car from a private place, like the debtor’s home or garage. However, you must have permission to enter the property or a court order.
- Public Place: You can usually repossess the car from a public place, like a parking lot or street, without permission or a court order. However, there are exceptions to this rule. For instance, you cannot repossess the car if it is at the debtor’s place of business or a car dealership.
3. Secured Property You must keep the repossessed vehicle in a commercially reasonable manner.
4. Give notice of sale The notice must be made within a specific timeframe (usually 10-20 days) after the repossession and must include certain information, like the date, time and place of the sale, a description of the vehicle, and the amount owed on the loan.
5. File notice with the DMV You will likely have to file paperwork with the Department of Motor Vehicles (DMV) to transfer the title of the car from the debtor's name to your own.
6. Sell the car If you are unable to resolve the situation with the debtor, you can sell the vehicle to satisfy the debt. You must follow all applicable laws and regulations when selling the car, and you must be able to account for any excess funds from the sale.
