Truckmount from an Auto Auction

[Farenheit251]

Anyone ever buy a van at auction that had a machine in it. My son is working as an inspector on repos. Today he called to let me know he was inspecting a GM van 3490 miles and Legend xl w/ 73 hours. Thinking it will probably sell for close to van value The machine is a little small for me so not sure but I'll probably go see the auction anyway

I'm thinking there is a good chance the machine is leased. If I bought something like this can the leasing company come and take the machine back? Seems like they would have the right which is fine but the only reason I'd buy the van was because of the machine.

 

[Bob Foster]

They probably can't. The leasing company probably paid out the TM company when they wrote the deal with the lease company financing both the van and the TM. Once the lease company repo-ed it they have to put up a time limit where to those who object or have an interest in the seizure.

There may have been in force a recourse agreement between the leasing company and either or both vendors where in the event of a charge back they each would be liable for a portion of the charge back. That should not effect a buyer.

When the chattel hit the auction it would have had to be signed off by the lease company as to their right to sell it.

It might be that until the gavel drops any party can substantiate their color of right but after the gavel drops those parties generally lose all rights to the property.

Buy it and flip it and then get what you want.

 

[Mr.V]

I was thinking the same as bob

my Legend XL sold for $3000 less than I paid for it with around 2000 hours

 

[boazcan]

No recourse at all. Whoever buys it, owns it all.

Probably was financed by a local institution and they have no idea what to do with it. You will get a good deal, because most people will figure the cost of removing the unit to sell or use the van. There are plenty that will not have this trouble.

Tough market to buy and flip it.

 

[Bob Foster]

Bid real low.

 

[steve frasier]

if you are a bonafied purchaser of value then as a buyer you can't be touched but you may spend some time in court

I have a friend that goes to the auto auctions around here and runs into a few of these, we find quite a few older cds units with some hours on then

have never been able to get one for less then $10,000

 

[Kevin]

The Leasing Company pays both the Truck Dealer and TM Distributor when the lease is done.
The Leasing company holds the title.

They will send it to Auction. The remaining defecit on the van and TM will still be owed by the guy who leased it.

 

[Bob Foster]

Most states have a seize or sue law. Since the vehicle was seized they can't go after the lessee for the short fall.

 

[Rex Tyus]

lease companies often have a $1 lean on the vehicle a truckmount is to be installed in. They won't be able to complete title work without the lean companies satisfication. Research before you bid more than what you are willing to pay for the van it self. The repo company may be unaware of the lean until registration change is applied for.

 

[boazcan]

In Florida, bank will have to acquire a "repo" title prior to selling at auction or to a third party. The repo title will be clean or the auction will not process the vehicle. The repo title is then released and regular title acquired by purchaser.

Bank most definitely will go after borrower for the balance due in Florida. The loan is payable regardless of collateral. If collateral, then sold and applied to balance. Leftover is fair game. Bank usually works for a few months, then the account is sold to collection companies for a long time.

I used to do this in a previous life on a daily basis.