Is it legal for the buyer to be charged full price of their repossessed vehicle?

In general, when a vehicle is repossessed, the lender (usually a bank or credit union) seizes the vehicle from the borrower (the buyer) because they have failed to make the required payments on the loan. However, the buyer may still have some rights and protections under state law. The specifics can vary from state to state, so it's essential to consult with a knowledgeable consumer attorney to understand your specific rights and options.

Generally speaking, the process for repossession and sale of a vehicle typically follows these steps:

1. Default on Loan: The borrower fails to make the required loan payments, and the lender sends notices of default and potential repossession.

2. Repossession: If the borrower does not rectify the default, the lender may repossess the vehicle, usually by hiring a towing company. The lender must follow specific legal procedures for repossession, which can vary by state.

3. Sale of Vehicle: After the repossession, the lender may take ownership of the vehicle and initiate the sale process to recoup the outstanding loan balance and any associated costs, such as repossession fees and storage.

4. Notice of Sale: The lender is typically required to provide the borrower with a notice of the intended sale, including the date, time, and location of the sale.

5. Credit to Borrower: After the sale, the lender credits the borrower's loan account with the proceeds from the sale. If the proceeds cover the outstanding loan balance and associated costs, the borrower may receive any剩余funds. However, if the sale proceeds are insufficient, the borrower may still owe a "deficiency balance," which can result in additional collection efforts by the lender.

In most cases, the lender is not permitted to charge the borrower the full price of the vehicle they repossess, as this would mean that the borrower essentially ends up paying twice for the same vehicle. Instead, the lender is typically required to sell the vehicle at a commercially reasonable price and credit the borrower's account for the proceeds from the sale.

However, there may be exceptions or variations to these general principles, depending on state laws, loan agreements, and specific circumstances of the repossession and sale. That's why it's essential to seek legal advice from a consumer attorney who can assess the details of your situation and guide you on your rights and options.