Which remedies are available to the dealer when a buyer defaults?

• A. Accelerate the amount due, repossess the vehicle, and sell the vehicle
• B. Only accelerate the amount due
• C. Only repossess the vehicle
• D. Only sell the vehicle

Answer: (D)

When a buyer defaults on a financed vehicle, the dealer’s remedy focuses on turning the collateral into cash to satisfy the debt. The way to do that is to sell the vehicle in a commercially reasonable manner and apply the proceeds to what is owed. The scenario presented emphasizes the remedy of selling the vehicle as the means to recover the debt, with any deficiency handled afterward through appropriate legal channels. This is why selling the vehicle is the correct choice: it directly converts the collateral into payment for the loan. While accelerating the due date or repossessing can occur in practice under certain terms or laws, the option highlighted here centers on the sale as the recognized remedy for default.