After your motor vehicle has been repossessed, there are some rules the lender must follow:
1. you must be notified in writing that your car has been repossessed, and what its estimated value is. Your car cannot be resold until 21 days after this notice has been issued;
2. your car must be sold for the ‘best price reasonably obtainable’ and ‘as soon as reasonably practicable’ (You can apply to the Court for compensation if the lender delays
unnecessarily in selling your car or resells your car for less than the best reasonable price.
The lender must show that they did sell for the best reasonable price and as soon as reasonably practicable.
3. you can object if the lender charges you expenses for repossessing and reselling your car which seem unreasonably high;
4. you can find a buyer yourself who you can introduce to the lender at any time during the 21 days after you have been notified of the repossession. Finding a buyer yourself may be the best way to ensure your car is sold for the highest possible price;
5. if the lender sells your car for more than the amount outstanding on the loan plus the reasonable costs of repossession and sale, the lender must give you the rest of the money received from the sale of your car;
6. if you still owe money on the loan even after your car has been sold, the lender must
notify you how much you still owe (”the residual amount”). This residual amount will then be payable by you. Unless you can reach an agreement with the lender for the repayment of the residual, the lender can then start legal action to recover this amount.
