Your Guide To Finding Repo Cars
‘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 from the sale or auction of the repo car for sale 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 repocars 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 auctions, it’s best if you have a plan of attack before attending and car auction to purchase a car.
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.
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.
Highlight any vehicles you’re interested in on the inventory list.
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.
Use an inspection sheet to grade the vehicles you’re interested in, this is where your mechanic will be invaluable.
Make sure you start the vehicle and listen for strange noises, odours and leaks.
Finish your inspections with plenty of time before the auction starts.
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.
If you’re the winning bidder you’ll be required to make final payment arrangements before leaving, make sure you know the rules beforehand.
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 repossessed cars, finding the repo auctions 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 repo boats, rv’s, motorcycles, atv’s, jet ski’s and pretty much anything that moves. As with any used vehicle you’re always advised to inspect the item as thoroughly as possible and whenever possible take a qualified mechanic to give it a once over.