How does the Floor Plan enforce its interests? REPO!
Repossession is not limited to consumers who default on their car notes. It also happens when dealers default on their Floor Plan obligations.
Don’t be the victim of a Floor Plan Repossession. Learn more below.
Below is a transcript of the video:
When we think of repossession, we think of a repo man showing up at someone’s driveway, apartment complex, or parking lot at 2:00 in the morning or 3:00 in the morning to pick up a car when everybody’s sleeping. That’s standard thought for consumer repossession. But what happens when a floorplan financing company finds their dealer is in default and decides to repossess the vehicles? Believe it or not, it’s the same thing. The floorplan company, because they’re secured, can show up at any time of day or night and they’ll probably have more than one truck.
They’ll probably have a lot of trucks and a coordinated effort to pick up the inventory, then the dealer gets to their lot the next morning and it’s empty. It’s hard to believe, but I’ve seen it happen. So just note floorplan finance companies, because they’re secured, they have the ability to repossess vehicles in the event of default. That would again be in the terms of the contract. Notice in most of these videos, I’m referencing these contracts A, because I’ve seen a lot of them, but B, because it’s important that anyone watching this video understands that every contract is different.
Without reviewing the contract, I can’t be sure one way or the other who’s allowed to do what and under what circumstances. Just know that generally speaking, the floorplan financing company, because they are secured, has the ability to come in and repossess all of the property that is securing the financing agreement and that can include multiple vehicles on the lot.
For more videos on the Georgia Car Law Authority series, please visit www.georgiacarlaw.com.
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