IARA’s Certified Automotive Remarketer Program: CAR-10
UNIT: Pre-sale Activities
COURSE: CAR-10 Repossession Process
Each year 16-17 million new and more than 14 million used cars are sold in the United States. With new cars costing an average of $28,479 (according to the second quarter 2007 Comerica Auto Affordability Index) and used cars costing $13,900 (according to edmunds.com), it is clear that the automobile market is strong and growing. Interest rates on auto loans have also remained low, and many borrowers have taken advantage of the current market by purchasing new or used cars.
But unforeseen financial roadblocks can turn a car payment that once seemed manageable into a financial burden, leading some to default on their loan and, ultimately, repossession of the vehicle.
Most U.S. banks and loan companies use the services of an automobile repossession firm. As a result of the financial difficulties of many American consumers, the repo business is a billion dollar industry.
This course will help CAR candidates recognize and explain the unique elements surrounding repossession processes. Specifically, candidates will be able to explain the activities and functions necessary whenever vehicle repossession takes place. They will also gain insight into determining state-specific repossession laws, as well as how to keep up to date on repossession news and events.
At the completion of this module, participants will be able to:
• State the reasons as to why vehicle repossession is necessary.
• Describe the details that take place before the actual repossession of the vehicle occurs.
• Describe the elements necessary for an actual physical repossession to take place.
• Explain the legal guidelines that must be followed in vehicle repossession.
• Describe the different types of repossessions.
• Identify sources to help explain the repossession process, as well as stay updated on repossession law.
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