questions & answers

Question: I voluntarily turned in a car that i could not longer afford back to the finance company,now 4 years later, I found out that they sold the car at auction for only $50.00, far below the value and said hey are goind to sue me for the unpaid balance plus intrest, can they do that?

Answer:

Generally, in Arizona when a vehicle has been repossessed due to a failure/inability to pay as agreed under a financing contract (this includes situations when a person voluntary returns the vehicle for inability to pay), the lender may:

• sell the vehicle (after notice);
• and apply the proceeds of the sale to:
  • the costs incurred by the lender in securing the sale of the vehicle;
  • the remaining balance due under the financing contract.
• After applying the proceeds of sale there is still a balance due, the lender is entitled to sue the party responsible for payment under the contract for the remaining balance. See, ARS § 47-9615. 

You may want to review the following Arizona Revised Statutes (found within the Arizona Uniform Commercial Code) starting at A.R.S. § 47-9601.

If you feel that you need assistance with how the law applies to your specific information, you may want to speak with a consumer lawyer.