The Hunt for Missing Repossessed Cars: How Financial Companies Track and Recover Your Vehicle
Every car owner understands that repossession is a real possibility if payments are missed, but how do financial companies track down a car that has been hidden or stolen? In this article, we explore the methods used by lenders and recovery services to locate and recover car assets.
Why It’s Difficult to Hide Your Car
Doubting that you can hide it forever? Clients often try to mask their cars, but the finance company won’t stop searching. My mother, who worked at GMAC Finance, had many stories about clients who tried to trick the system.
Contact and Registration
The car owner will be found when they re-register it or try to sell it. If you are in this situation, it is best to return the car. Not following the terms of your agreement and not returning the car is irresponsible and unethical. Remember, no one owes you a free car. The longer the situation persists, the worse it gets as the car's value decreases, and the lender's recovery gets progressively more difficult.
The Usual Process of Recovery
Once a car is reported as missing or stolen, it gets reassigned to various recovery services. These firms continuously search for vehicles until someone finds it or the car is deemed unlikely to be found. This process can be frustrating, as the car may change hands several times, with new recovery services taking over the search.
Recovery Services and Search Patterns
Progressively, each recovery service becomes familiar with the account and may stop making special trips in search of the car. However, conditions under which it is looked for include proximity to the area and the presence of new potential addresses. LPR hits (License Plate Recognition) are a valuable tool, as they provide proof of a car's location. New recovery services may be hired if these hits are detected. This ongoing cycle ensures that the car is not overlooked.
When the Car Is No Longer Reported for Repossession
Many believe that financial companies write off cars after a certain period. However, this does not mean repossession ceases. It only indicates that the lender views it as a total loss. If the car is found, it is considered a profit, and the lender will add it back to their books.
Fraudulent Identity Theft and Its Impact
One particular case involves a 2017 Nissan Maxima that was never reported to have been driven since its initial defection. My suspicions were that the car was purchased using a fraudulent identity, making it nearly impossible to locate. Financial companies struggle with this issue, but as long as there is no evidence of the person ever living or having an online presence, the car remains in circulation.
Legal Interventions
As a last resort, lenders can obtain a replevin from the court, compelling the borrower to hand over the car or face legal consequences. However, this process is often expensive and time-consuming, making it a rare occurrence.
Conclusion
While it is difficult to hide your car from financial companies, it is often even more challenging to continue using it. Always ensure your payments are up to date, and be prepared to return the vehicle if you are unable to make payments. Remember, the financial system is vigilant and relentless in recovering its assets.