Ford Files US Patent for Auto-Repossession Tech

Automakers are looking for ways to protect themselves from defaults as Canada's auto loan delinquency rate rises. Ford Motor Company has recently taken steps to ensure that their vehicles remain in possession of buyers who abide by their contracts by applying for a patent in the United States for an automated repossession system.

Ford Files a Patent 'Systems and Methods to Repossess a Vehicle' on Feb. 23

According to the story by Global News California, the idea of a car being able to repossess itself is no longer science fiction. Automaker Ford recently applied for a patent in the United States, allowing vehicles to do just that.

Dubbed "Systems and Methods to Repossess a Vehicle," the patent was published on Feb. 23 and details the methods and reasoning for automated repossession. In the patent, Ford explains that such a system would help avoid confrontation between the bank and the vehicle owner.

Owner to Get Numerous Alerts Before the Vehicle Being Automatically Repossessed

Upon defaulting on payments, the vehicle would be disabled, and the owner would receive numerous alerts and notices before the vehicle would be automatically repossessed.

The system would be installed in any vehicle with an internet connection and could be used to self-drive the vehicle directly to a repossession agency or impound lot. This would be determined based on the car's mileage, condition, and other costs associated with repossession.

Impound Lot Location is Automatically Determined by Vehicle Condition and Mileage

Surprisingly, Ford is the only automaker to have filed for an automatic repossession patent. However, the patent does not necessarily mean the automaker will introduce any technology element to its product lines.

Ford could have filed the patent to claim ownership of the idea before a competitor. Unfortunately, repossession is becoming increasingly common. Auto loan delinquency rates are reportedly rising in Canada, with nearly 2% of auto loans becoming delinquent in 2021, as seen on Better Dwelling.

Ford's Automated Repossession Patent: A Potential Solution to Conflicts Between Vehicle Owners and Creditors

Ford's automated repossession patent could help to prevent some of the conflicts that can arise between vehicle owners and creditors. Though Ford has filed the patent, that does not necessarily mean the automaker will introduce any technology element to its product lines.

Often, patents are filed by a company to claim ownership of an idea before a competitor. Global News contacted Ford Canada to inquire if a similar patent was in the works north of the American border but received no comment.

How Ford's Automatic Repossession Patent Could Affect the Repossession Process

Ford is the only automaker to have filed for an automatic repossession patent. In an era of increasing auto loan delinquency, it is understandable why Ford has sought to protect itself from bad debts by applying for this patent.

However, it is yet to be seen how this system will affect the repossession process and whether or not it will be implemented in the future.