What happens with a vehicle after it is repossessed?

Answer by  leroy (231)

It is really up the the lender that repossessed it. Generally repossessed cars are sold to recoup as much of the amount of the loan as possible.

Answer by  tamarawilhite (17883)

They are rarely destroyed unless they were already totaled. Repossessed vehicles are typically held for several days in case the debtor pays the necessary fines and past due payments. It is then sold at auction with other repossessed cars and vehicles. The amount owed minus what is received at auction will be billed to the debtor.

Answer by  Brandydog (631)

Usually an agency is contracted to conduct the repossesion. Very often, they are entitled to hold the vehicle until a legal owner can cliam it and pay them a large holding fee. For example, a car dealer wishing to repossess a vehicle due to an unpaid lease would probably hire such an agency rather than do it themselves.

Answer by  John (9008)

The rules for this can vary but, in general, the vehicle is sold at an auction and the proceeds are applied to your debt. If the vehicle is sold for less than the debt owed, you may owe the difference, although rules for this vary greatly.