What does Byrider's Chapter 9 say about using an outside repossession vendor?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| Purpose | 9.1 |
|---|---|
| Overview | 9.1 |
| Why does CNAC repossess? | 9.1 |
| BEST PRACTICE: Repossession | 9.1 |
| Before making a decision to repossess | 9.2 |
| BEST PRACTICE: Storing repossessed vehicles | 9.2 |
| Creditor rights | 9.3 |
| Uniform Commercial Code | 9.4 |
| Repossession of collateral – UCC 9-609 | 9.4 |
| STANDARD: Self-help repossession | 9.4 |
| Using an outside repossession vendor | 9.5 |
| PROCEDURE: Set up or edit a Repossession Vendor | 9.6 |
| Forms and instructions for the repossession process | 9.8 |
| Repossession of a vehicle | 9.12 |
| PROCEDURE: Repossess a vehicle | 9.12 |
| Servicemembers Civil Relief Act of 2003 (SCRA) | 9.11 |
| Once a repossessed vehicle is returned to the lot | 9.16 |
| PROCEDURE: Processing a repossessed vehicle returned to the lot | 9.17 |
| Tracking repossessed vehicles | 9.18 |
| PROCEDURE: Locating a vehicle in the Repo Inventory using the "Repo Inventory" tab | 9.19 |
| PROCEDURE: Locating a vehicle in the Repo Inventory using the "Search" tab | 9.21 |
| After recording a repossession in Discover | 9.22 |
| PROCEDURE: Prepare paperwork after repossession | 9.22 |
| Adjust a repossession | 9.24 |
| PROCEDURE: Adjust a repossession | 9.24 |
| Liquidation of a repossession | 9.26 |
| STANDARD: Repossessed vehicles | 9.26 |
| PROCEDURE: Completing Form #11550-Explanation of Calculation of Surplus or Deficiency | 9.27 |
| Charge offs | 9.30 |
| BEST PRACTICE: Charge off | 9.30 |
| PROCEDURE: Charge off an account in Discover | 9.31 |
| BEST PRACTICE: Collateral disposition | 9.32 |
| Charge off maintenance | 9.37 |
| PROCEDURE: Charge off maintenance in Discover | 9.37 |
| Adjust charge off | 9.40 |
| PROCEDURE: Adjust a charge off | 9.40 |
| Deficiency balances | 9.42 |
| STANDARD: Finance charges on deficiency balance | 9.42 |
| STANDARD: Bad debt recovery | 9.42 |
| Back off | 9.43 |
| STANDARD: Back off | 9.43 |
| STANDARD: Refund/Return of down payment, DIP, and trade-in | 9.44 |
| PROCEDURE: Repossessing a back off vehicle | 9.44 |
| Recording the back off in Discover | 9.45 |
| PROCEDURE: Back off a deal in Discover | 9.45 |
| Adjust a back off | 9.49 |
| PROCEDURE: Adjust a back off | 9.49 |
| Mutual release | 9.51 |
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Chapter 9 provides information on repossessions, back offs, and charge offs. Specifically, section 9.5 addresses the use of an outside repossession vendor. The document also includes procedures for setting up or editing a repossession vendor, which are detailed in section 9.6.
This suggests that Byrider franchisees have the option to use outside repossession vendors, and the franchisor provides guidelines and procedures for managing these relationships. This could be beneficial for franchisees who do not have the resources or expertise to handle repossessions internally.
For a prospective franchisee, understanding these procedures is crucial, as repossessions are a necessary part of the "buy-here-pay-here" business model. Knowing how to properly manage and work with outside repossession vendors can impact the efficiency and profitability of the franchise. It is important to review Chapter 9 in its entirety to fully understand the requirements and best practices related to repossessions.