Maricopa County Superior Court Confirms Four Year Statute of Limitations in Auto Sales Contract

Maricopa County Superior Court reaffirms Four Year Statute of Limitations in Deficiency Claim

In the Case of Autovest, LLC v. Randall, CV2014-013134, Maricopa County Judge Karen A. Mullins reaffirmed that the statute of limitations to collect on a deficiency balance for an auto loan after repossession is only four years. If the car was purchased using a Retail Installment Sales Contract, and the dealer arranged the financing, then the statute of limitations runs four years after the car is repossessed.

Complete Defense to Colleciton Action

In Arizona, if you are sued by a lender for a deficiency balance after repossession, and the lender has waited four years or more to file suit, they you should have a complete defense to the collection action. Meaning, you should be able to get the case dismissed and not owe anything.