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Repossession
Liens
California

Is there a law in California that prevents creditors from auctioning a repossessed car for less than a reasonable price?

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2011-09-13 05:49:15
2011-09-13 05:49:15

The Uniform Commercial Code in every state requires only the lender to sell "in a commercially reasonable manner". That's all. There is where the conflict arises on the selling price. A debtor who buys a car for $5000.00 more than it is worth is often heartbroken when s/he still owes $8000.00 after it is sold at auction to a WHOLESALER.

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