Financing and F&I

What is deficiency?

A deficiency is the balance still owed after a repossessed vehicle is sold and the proceeds are applied to the account.

Collecting one depends on having followed the process exactly: lawful repossession without breach of the peace, and a pre-sale notice containing what the UCC requires.

Get the notice wrong and courts routinely bar the deficiency entirely, which turns a paperwork slip into the whole balance.

Source: UCC 9-614 (contents of notification)

Related terms

BHPH

Buy here pay here means the dealer finances the sale itself and collects the payments, instead of selling the loan to a bank or finance company.

Static pool

Static pool analysis groups notes by the month they were originated and tracks each group's performance separately, instead of blending everything into one portfolio average.

General information for US dealers, not legal advice. Rules change and vary by state, so confirm specifics with your state agency or counsel.