Repossessed cars and trucks are typically sold at auctions so the creditors can recoup lost funds from non-payment by the buyer. In many states, the creditor must let the vehicle owner know that the intent is to sell the vehicle in a public or private sale.
When a repossessed truck is slated to be sold at an auction, many state laws stipulate that the creditor must notify the vehicle owner and provide the time and place of the sale. The buyer has the right to attend the auction and participate in bidding. If the creditor plans to sell the repossessed truck privately, the truck owner usually has the right to know the date of the sale. Creditors are responsible for selling the repossessed vehicle in a commercially reasonable manner, which means the sale price must be near fair market value.
Vehicle owners, in many states, have the right to buy back or redeem the repossessed truck by paying the full amount owed to the creditor in addition to past-due payments and interest if applicable. Attorney fees, storage expenses and sales preparation fees may also be added to the bill for the owner to buy back the vehicle after repossession occurs. Some states also allow individuals to reinstate the vehicle loan by paying repossession expenses and past-due payments.