how do I repo a car ?
how do I repo a car ? I sold a car to some "friends" who haven't made a payment in over 6 months.
I'm not sure where they live now, but I know that they live within 20 miles
or so from me. I didn't make them sign any contract, just a verbal
agreement on a price, and a payment plan. I transferred the title, but put
myself as a lien holder on the title. What should I do now?
-The procedures for repossession vary from state to state, and you didn't
indicate in which state the car is located. The easiest way to deal with
this issue is to speak with a local collection attorney.
-Although you very wisely placed yourself as lien holder on the car, that by
itself may not give you the right to resort to "self-help" and repossess. Car
dealers and commercial lenders have the buyer execute a security agreement
expressly stating that the lender has the right to repossess in the event of
default. In the absence of such an agreement, you may have to resort to
judicial process to get possession.
And even if you could repossess, there are strict rules for the disposition of
the collateral under the Uniform Commercfial Code that can expose you to
liabilty if you fail to follow the proper procedures. No person should attempt
a "self-help" repossession unless they are fully versed in applicable laws
relating to repossession and disposition of the collateral.
As previously stated, you need to consult a local attorney for advice about your
options under state law. Until then, the good news is that you have a purchase
money security interest in the car that prevents them from selling it or
otherwise encumbering it without satisfying your loan.