Repossession:
- If you fail to make your car payments, the lender has the right to repossess your vehicle.
- The lender must provide you with a notice of default before they can repossess your vehicle. This notice must include:
- The amount you owe on the loan
- The date by which you must pay the outstanding amount to avoid repossession
- The date, time, and location of the proposed repossession
- The lender does not need a court order to repossess your vehicle. However, they can only repossess it through peaceful means. This means they cannot break into your home or garage to take it.
Deficiency Balance:
- If the lender sells your vehicle for less than the amount you owe on your loan, you will be responsible for the difference, known as a deficiency balance.
- The lender must send you a notice of sale within 10 days of the sale. This notice must include:
- The date, time, and location of the sale
- The amount the vehicle was sold for
- The amount of the deficiency balance
- You have 15 days from the date of the sale to redeem your vehicle. To do this, you must pay the lender the full amount of the deficiency balance plus any related fees.
- If you do not redeem your vehicle, the lender can take legal action to collect the deficiency balance. This may include garnishing your wages or taking a judgment against you.
It's important to note that these are general guidelines and there may be exceptions or additional requirements depending on the specific circumstances of your case. If you are facing repossession or have questions about your rights and obligations, it is recommended to consult with an attorney.
