Can I repo a vehicle if my sales contract does not specifically say that I can?
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Can I repo a vehicle if my sales contract does not specifically say that I can?
A few months ago I sold a classic truck to an individual. Our contract states he will make weekly payments to me until the balance is paid off. Since taking the truck, he claims he’s paid $1500 in repairs. When I sold him the truck, it had no problems, and he did not want to take a test drive. I have not received a payment in 2 months. Our contract does not address the issue if payments are missed, can I still repo it?
Asked on October 3, 2011 under Bankruptcy Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
No, you can't, unless when you sold this person the truck, you specifically retained, through the sales contract, a security interest in it, which you could use to reposses the truck in the event of default. Without you having been given a security interest at the time of sale, you have no right to repossess the vehicle.
Your remedy is to sue the buyer for breach of contract. You can sue him at least for the missing payments; you likely can hold him in material breach (since payment is such an important term of any transaction, failure to pay is a material, or critical, breach of the agreement) and sue for all money due under the agreement.
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