In most jurisdictions, the secured party, which is the car lot in this case, is required to conduct the sale in a commercially reasonable manner. This means that the sale should be conducted to maximize the value of the vehicle and reduce any potential deficiency balance owed by the borrower. The secured party is responsible for providing notice of the sale to the borrower and following any legal requirements for conducting the sale.
After the sale, the proceeds are used to satisfy the outstanding loan balance, including any accrued interest, fees, and costs associated with the repossession and sale. If there is a surplus amount left over after deducting these expenses, the secured party must remit the surplus to the borrower. However, if the sale proceeds fall short of the outstanding debt, the borrower may be responsible for the deficiency balance, unless prohibited by applicable laws.
It's essential to note that repossession and sale procedures can vary across different jurisdictions, so it's important to refer to the specific laws and regulations in your location for accurate information on the rights and obligations of both the lender and the borrower during the repossession and sale process.
