If you’re looking for a car dealership that offers affordable vehicles, chances are you’ve heard of American Car Center. The dealership, which was established in 2013, is known for providing customers with a range of quality pre-owned cars and flexible payment options.
But like any other dealership, ACC has its own repossession policy that customers must be aware of before signing up for a vehicle. In this article, we’ll take a closer look at the American Car Center repossession policy – what it entails and how it can affect you as a customer.
What Is Repossession?
First things first – let’s define what repossession is. Repossession occurs when an individual or company takes back property that they have leased or sold to someone because the person has failed to make agreed-upon payments. In the case of American Car Center, this means taking back possession of a vehicle when the customer falls behind on their payments.
The American Car Center Repossession Policy
So, what does the ACC repossession policy entail? Here are some key points:
Late Payment Grace Period
American Car Center offers customers a grace period of 15 days after their due date before late fees are incurred. This means that if your payment is due on the 1st of every month and you’re unable to make it on time, you have until the 15th to make your payment without incurring additional fees.
It’s important to note, however, that even during this grace period, your account will still show as delinquent. If you continue to miss payments beyond the grace period, this can lead to further consequences (which we’ll discuss later).
Default Notice
If you miss a payment beyond the grace period or fail to make subsequent payments after your account is delinquent, American Car Center will send you a default notice. This notice will outline the amount owed and provide a timeline for payment.
It’s crucial that you take this notice seriously and make every effort to repay your debt. Failure to do so can lead to further action by ACC.
Repossession
If you continue to miss payments after receiving a default notice, American Car Center may proceed with repossession. The company notes on its website that it "will repossess any vehicle when the customer has refused to make voluntary payments or surrender the vehicle upon demand."
This means that if you’re unable or unwilling to make payments on your vehicle, American Car Center has the right to repossess it – even if you’re still making partial payments.
While repossession is never an ideal outcome, it’s important for customers to understand that it’s a legal process and one that ACC is entitled to pursue if necessary.
What Happens After Repossession?
If American Car Center does end up repossessing your vehicle, here are some things that can happen:
Sale of the Vehicle
Once your vehicle is repossessed, American Car Center will typically sell it at auction in order to recoup their losses. If the sale price does not cover what you owe on the car (including late fees and repossession costs), you may still be responsible for paying the remaining balance.
Deficiency Balance
The deficiency balance refers to any amount owed on the car after it has been sold at auction. For example, let’s say you owe $10,000 on your car but it only sells for $8,000 at auction. That means there is a deficiency balance of $2,000 – which you may still be responsible for paying.
Keep in mind that deficiency balances vary from state to state and depend on a number of factors. It’s important to consult with a legal professional if you find yourself in this situation.
Effect on Credit Score
Repossession can have a significant impact on your credit score. When a vehicle is repossessed, it will typically show up as a "repossession" on your credit report – which can lower your score by as much as 100 points.
If you’re unable to make payments on your vehicle and are concerned about the impact it may have on your credit, it’s important to contact American Car Center and explore other options (such as refinancing or deferring payments).
Conclusion
Understanding the American Car Center repossession policy is crucial for anyone considering purchasing a vehicle from this dealership. While repossession is never ideal, knowing what to expect in the event of missed payments can help you better prepare for any potential outcomes.
Remember, if you’re struggling to make payments on your car or have received a default notice from ACC, it’s important to take action as soon as possible. This will not only help you avoid repossession but also minimize the impact on your credit score.
FAQs
What is American Car Center repossession policy?
American Car Center repossession policy is a set of guidelines that govern the circumstances under which a vehicle owned by American Car Center can be repossessed from a customer.
What are the reasons for repossessing a car at American Car Center?
There are several reasons why a car may be repossessed at American Car Center, including default on payments, breach of contract, failure to maintain insurance coverage, or sell of the vehicle without written consent from American Car Center.
How does American Car Center notify customers before repossession takes place?
Before repossession occurs, customers will be notified in writing and allowed to bring their account current to avoid further action. If no response or resolution is made, then the vehicle may be repossessed by American Car Center.
Can American Car Center repossess a vehicle without notifying the customer first?
No, American Car Center cannot legally repossess a vehicle without first notifying the customer in writing and allowing them an opportunity to address any issues with their account.
What happens after a car has been repossessed by American Car Center?
After repossession, the vehicle will typically be sold at auction to recoup any outstanding debt owed by the customer. If there are any funds left over after the sale of the car, they may be returned to the customer.
Is it possible for a customer to get their car back after it has been repossessed by American Car Center?
Yes, it is possible for a customer to get their car back if they pay all outstanding fees and bring their account current within a certain time frame set forth in their agreement with American Car Center.
Are there any fees associated with repossession at American Car Center?
Yes, there may be fees associated with repossession at American Car Center, including storage and administrative costs. These fees will be added to the customer’s account and must be paid before the car can be released.
What happens if a customer refuses to surrender their car after repossession has taken place?
If a customer refuses to surrender their car after repossession has taken place, they may face legal action from American Car Center. This could include fines, penalties, or even imprisonment in extreme cases.
Can a customer sue American Car Center for wrongful repossession?
It is possible for a customer to sue American Car Center for wrongful repossession if they believe that their vehicle was repossessed without following proper legal procedures. However, this would require strong evidence and legal representation.
How can customers avoid having their cars repossessed by American Car Center?
Customers can avoid having their cars repossessed by making timely payments on their accounts, maintaining insurance coverage on the vehicle, adhering to the terms of their contract with American Car Center, and contacting them immediately if any issues arise.