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BHPH Repossession: Things to keep in mind regarding the vehicle ACV

By Deal Pack - November 21, 2012

What happens once a vehicle has been repossessed, and the proper notifications made to the buyer and co-buyer of your intent to resell, and the customer has failed to redeem the vehicle?


At this point, the answer depends on your intentions toward the customer’s deficiency balance. If you intend to take the balance as a loss on your bottom line, you are free to resell the vehicle in any manner you choose. However, if you intend to pursue the buyer/co-buyer for the deficiency balance, you’re going to need to reduce their deficiency balance by the actual cash value (ACV) of the vehicle (which is determined at time of resale, if reselling to an auction), because you can only recover from them their balance at the time of repossession, plus your expenses (repo, storage, etc.), less the proceeds from the resale.


As state laws vary, you can check in with your state’s independent dealer association for additional information on how to properly handle the resale of repossessed vehicles in your state.

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