How Long it Takes Before a Repossessed Car Is Sold

A process usually exists for a repossessed vehicle's sale. It is first taken back from the borrower and then stored until the bank's auction or resale (if it sells vehicles privately). It then takes time to sell a vehicle once it is for sale; not all sell immediately. If you're wondering if you have an opportunity to get your car back or how long it will take to receive a check for equity, you must first understand the process.

Before the Sale

To repossess your vehicle, the bank hires a repossession or tow company to collect your car. Once it is collected, it is not usually returned to the bank right away. You can expect a week's time before the vehicle is brought to auction for resale or back to the bank to be sold privately. Once the vehicle is returned, it must be prepped for resale and paperwork must be in order. In addition, the bank offers you an opportunity to get your vehicle back before the scheduled sale, usually two to three weeks after repossession.

Getting Your Vehicle Back

The requirements for getting a repossessed vehicle back differ by lender; some require past due payments, late fees and repossession cost to be paid in full before the intended sale date. Others may require you to pay the loan amount in full, in addition to these fees. If you can pay the money to get the vehicle back, you will have to go to either the auction site where the vehicle is sitting or to the bank if the bank is going to resell the vehicle itself. You will receive official notification of this information.

Notification of Sale

Once your vehicle is sold, you will be sent a letter to notify you of the vehicle's selling price. The bank sends you this notice to let you know if any money is due to you or if it owes you money. If the vehicle is sold at an auction, you can expect quite a price difference between its retail value and selling price. Auction sales warrant wholesale value, which is equivalent to a car's trade-in value. The retail value is usually several thousand more.

Money Due or Owed

Your bank should return any money due promptly. Some will send you a check with the notice of sale. If you do not receive the check, call to find out when it will come or if you can pick it up. If you owe money, you can expect collection methods to begin. If you ignore all collection attempts, the bank may sue you for the amount due. In this event, the bank may eventually garnish your wages after taking you to court.