Repo Cars – Getting A Deal On Your Next Set Of Wheels

‘Slang for Repossessed Cars’

Most people interested in repo cars are interested in the price and quality of vehicle you can purchase. Repossessed cars come to us from one main source namely; people who forfeit on their payments.

In today’s economy there is an increase in amount of repossessed cars for sale, most are sold at auction to individuals or used car dealers who will flip them on their lots.  Car repo is becoming more commonplace as the state of the economy worsens and more and more people are simply walking away from their leases and financial obligations.

How Repossessed Cars Come To Be

After missing numerous payments or sometimes as little as 1 or 2 payments and failing to bring your account current with your car the lending company has taken steps to have your car repossessed.  If 60% or more of the loan has been paid the creditor must by law sell, lease or dispose of your car, this is usually done via repo car auctions.  This is true unless you have signed a statement after the default that allows them to keep your auto in full payment of the loan.  The sale of your car must be held within ninety days after it has been repossessed. You must be notified of the date, time and place of the auction or sale.

After The sale

Once the repossessed car is auctioned or sold, the funds derived from the sale are required to go to the outstanding balance owed on the loan including the the costs of the sale/auction and applicable lawyers fees and repossession costs i.e. Towing, storage, emergency repairs etc.  Any overage resulting for the sale/auction of the repo car must be paid to the buyer. Normally the funds raised at auction or from the sale are insufficient to cover the outstanding amount owed, in this case the re-possessor may choose to sue the consumer/owner for the full amount owed including legal fees, repossession fees, auction costs etc.

Retrieving a repo car is possible and you have the right to redeem it until the time it is sold or within 21 days of receiving legal notice that the lender/creditor is choosing to keep it. Costs will be dependant on the terms of your contract and it is likely you will still have to pay legal costs, towing, storage and more. The majority of seized vehicles go to auction.

Where Can I Find A Repossessed Car to Buy?

You can find repo’s on many different  auction websites like eBay and other similar sites. You can also search your neighborhood for auction houses, banks, and lending companies who have auto loans. Another sure bet that will feature bank secured cars is the classified ads in newspapers and even used car dealers or other auto dealers in your area, the majority of used car dealers dabble in them.

How To Buy A Repossessed Vehicle

The majority of repossessed cars go to auction, it’s best if you have a plan of attack before attending and car auction to purchase a car.

  1. Don’t go alone, take a friend or family member, better yet your local mechanic, if you don’t have one you can even pay a mechanic to come along to give the car an inspection.

  2. When you arrive you’ll need to register, they’ll give you a bidders badge, copy of the inventory for auction, rules and regulations etc. You’ll also likely need to provide them with a credit card.

  3. Highlight any vehicles you’re interested in on the inventory list.

  4. Use the Edmunds Used Car pricing guide to determine the high and low range wholesale value of the vehicle. It’s condition will determine it place in within the range.

  5. Use an inspection sheet to grade the vehicles you’re interested in, this is where your mechanic will be invaluable.

  6. Make sure you start the vehicle and listen for strange noises, odours and leaks.

  7. Finish your inspections with plenty of time before the auction starts.

  8. Know the maximum you’re prepared to pay for the car and stick to that number, it’s easy to carried away at an auction and that’s what they count on.

  9. If you’re the winning bidder you’ll be required to make final payment arrangements before leaving, make sure you know the rules beforehand.

  10. To make payment you’ll be required to go to the main auction office where you’ll make final payment. Here you’ll get a U.S Government title transfer certificate, a damage disclosure statement, the auctioneer’s receipt with odometer reading and your keys.

This gives you a good outline on how to buy repo cars, finding the auction’s and more, please continue to browse our website for more repo car tips and tricks and more!  You’ll also find that cars aren’t the only vehicles available at a repo car auction, you’ll also see lot of boat repos, rv’s, motorcycles, atv’s, jet ski’s and pretty much anything that moves.

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Online Car Auction

The internet has made buying a car a lot easier. Not only can you find many classified sites with thousands of cars available at the click of a button but you can also get some great deals using an online car auction. There are several different types of online car auctions though so it’s important to understand the difference between them.

First of all you have the regular car auction where an individual wants to sell their car online.  Regular car auctions can be an intimidating place if you’re not used to them, the same can be said if they’re held online, if fact they may be even more intimidating.  They can be competitive although you tend to have more of a chance to think through your decision compared to live auctions at an auction house. Even so, it’s still easy to get carried away so it’s vital you know the amount of money that you have available to spend on a car.

There are other options when it comes to finding an auto auction. For example, sometimes government auctions are held online which can be a great way of finding high quality cars for low prices. However, you should be aware that some websites claim to be government auctions when in reality they’re not. As long as you research the market value of a car and makes sure you’re highest bid is below this value you can be sure you’ll get a good deal though.

Another way to buy cars online is to use classified sites. Some classified sites such as Craigslist are more general but have car sections while others such as Auto Trader are specifically for buying cars. It’s worth visiting both to see which deals are available. Remember, patience is important when buying online as you need to wait for the right car to come up before you buy.

Another factor to consider when buying a car online is that you generally won’t have any sort of guarantee or comeback should the car not be what you expect, this is particularly true when purchasing a repossessed car.   For this reason if you have a chance to view a car before you buy and take it for a test drive then this is a major bonus. Buying a car online carries more risk than getting one from a local dealer because of the lack of a guarantee. While there are lots of good deals available on the internet there are also people who’re willing to bend the truth about the condition of a car or even completely lie in order to make a sale so make sure you are careful when buying.

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Online Auto Auctions Guide

When buying a new car the cost is one of the most important factors to consider. It’s important to know your monetary limits so you can get the best car possible for the right price. While buying second hand cars is common many people overlook online auto auctions when trying to get a new car and this can be a big mistake. There are many websites that offer online car auctions and they’re always worth considering before making a final decision. You  need to know and understand the advantages and disadvantages of using them though.

First of all, which online auto auction websites should you consider? There are many available and the one that you choose to use will depend on where you live. However, eBay is one of the largest sites for online auctions and has a section for cars.

The advantage of using online car auctions is that in some cases you can get a large percentage off the price you’d pay if you were to buy them from a dealer or other source. This can be the difference between getting an OK or a great car with your budget.

The disadvantage of using online car auction websites is that you’ll be bidding against a lot of other people which can push the price up and the fact that you may not be able to see the car before you buy. For example, you’ll encounter many repo cars for sale that will be hundreds of miles away, then the chances are the you won’t be able to visit and take it for a test drive before the auction ends. This makes online sites more risky then buying from a local dealer. You need to make sure you know exactly what the condition of the car is before you buy and that the person you’re buying from is a reliable and trustworthy seller. Most auction websites have a system which allows you tell how many items a seller has sold in the past and how reliable they’ve been.

Overall, online car auctions are definitely an option to consider when choosing a new car. If you want to buy a cheap second hand car then online auctions should only be one of your methods. For example, you should also use police and government auctions as you can often find good deals locally from these sources. Don’t overlook online auctions though as there are some good deals to be had just do your homework ahead of time.

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