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.

To begin with you need to be aware of exactly what you’re buying. If you don’t have a chance to take the car for a test drive and get it inspected before you buy then you could be taking a huge risk because there is often no comeback for the buyer.  This risk is increased even further if you’re thinking of purchasing a repossessed boat, the likelihood water testing the vessel will be little or none. If the auction listing says it’s being sold “as is” and doesn’t come with any sort of guarantee then you need to be especially careful when buying. Remember, in most cases the seller will have covered themselves legally and hence you won’t be able to get the money back once you’ve bought the car.

You also need to remember that on top of your bid you’ll have to pay extra to the auction house. Make sure you know exactly how much you’ll have to pay because sometimes it’s a fixed fee while other times it’s a percentage. Always factor this extra cost into your budget before you start bidding and make sure you don’t forget it in the heat of an auction! Many beginners to repo auto auctions do forget that there’s an extra fee and find they don’t have enough money once they’ve won an auction.

You should also factor in the extra cost to your decision as to whether you’re getting good value for money. There’s no point getting a car for $500 under the market value if the extra cost is going to be $600. It can be hard to work out figures while an auction is going on so you need to write them down before the bidding starts.

Sometimes a repo car auction will have a viewing session several days before the event but in some cases you’ll only be able to view the cars on the day. Either way, the earlier you get to the viewing the more chance you’ll have to look at the different cars available and make a judgement of their condition. Viewings can get busy quickly so the less people you have to compete with the better.

For example, if you’re looking for a repo car then after you’ve contacted local auction houses and banks you should  start to visit dealers. Sometimes repossession companies will sell the car back to the dealer who then sells it on to their customers – often at a massive discount. The same goes for finding repo boats and other items.

If you’re looking for repossessed homes then estate agents may know which ones are available and when they’re being sold. They may even have a repo house on their books although they’re usually advertised without this piece of information being displayed.

Most of the items that are repossessed will be sold at a repo auction as this is considered a quick and effective way for the insurance companies to get back as much money as possible. For this reason you need to understand how an auction works otherwise you may find yourself out of your depth. First of all you need to view the items you’re considering to buy before the auction. In most cases a repo depot will have a viewing of the auction items several days before the auction takes place so make sure you take advantage of this. You should also make sure you know exactly what your upper limit is when it comes to budget so you can stop bidding if the auction gets to this price. It can be easy to get carried away at a repo auction but this can be avoided if you know how much money you have available.

Finding a repossession depot can be a great way of saving money on big ticket items such as cars, boats and houses although there are some risks associated with it. Even though it isn’t as simple as many people would have you believe there is still the opportunity of you’re patient and sensible about which items you buy.

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When trying to find police repo auctions the first place you should go is the police themselves! This definitely does not mean ring 911 – that will get you into trouble. Instead you should ring the front desk of your local police station and ask when their next auction is happening. They won’t always be willing to tell you but it’s always worth a go.

Other places you could look for police auctions is in your local newspaper and online. The more people that know about a specific auction the less likely you are to get a good deal so by taking the time to look in places that most people don’t you increase the probability of getting a great car for a good price.

Even though when buying a car through police or government car auctions there is the chance of getting a fantastic deal you’ll still end up spending a large amount of money. For this reason you need to be sure that the car you buy is right for you and is in good condition. Make sure you know whether a car has been examined before you buy it and that you’re aware of all the potential problems. If you don’t have the confidence to examine a car yourself then it’s nearly always worth the money to hire a professional to look at it for you. This way you can have peace of mind when buying a new car even if it does cost you a bit extra. You also need to keep in mind your budget when at any auction for a car.

Remember, police auctions aren’t the only place you can get good deals on new cars. For example, online car auctions often end up with a discount compared to going to a dealer as do repossessed car auctions. The most important thing is to look around at the various options until you find a deal that’s right for you.

Some may have ethical issues about profiting from someone’s loss. However, if you have no such reservations, have cash, and are seeking a bargain, you may want to consider purchasing repossessed cars for sale. You may find the vehicle of your dreams for very little cash.

Car repossession occurs if the purchaser’s payments are in arrears and the purchaser defaults on a loan. The purchaser has two options:

1. They can voluntarily surrender the vehicle to the bank or…
2. A repossession company will come with a tow truck and “repossess” the vehicle from the owner‘s home, job, or another location where the car is known to be stored.

Many bank repo cars for sale can be found at government and bank auctions. Banks and government agencies can offer the cars at low prices because it costs the banks more money after a loan defaults to store the vehicle than to sell the vehicle immediately through auction. Additionally, governments entities are required through their policies and financial constraints to sell seized vehicles quickly.

All types of vehicles are available at these auctions. Some of the manufacturers include Land Rover, Porsche, BMW, Lincoln, Ford, Hummer, Mercedes Benz, Lexus, and Toyota to name a few.  As you can see finding an auction with repossession cars for sale or bank repos for sale is a great way to purchase a luxury vehicle for less.

Government Auctions

Government auctions offer cheap repo cars for sale at 90 percent of the Kelly blue book value. Many of these auctions are not advertised, because of the competition it would create for car dealerships. Typically, it is open to only a select group of people.

To gain access to government auctions offering repossessed cars, boats and homes, the buyer typically has to purchase a membership. Most memberships are not very costly, but there are some fees involved.

Some auctions allow the buyer to bid online. Many government auctions allow the buyer to physically inspect all of the cars prior to purchase and bid on the repossessed vehicles for sale.

Typically, buyers have a 2 day inspection period before purchase and some even come with 3 month warranties. Most of the vehicles are newer and have vehicle maintenance records, so there are typically no worries about purchasing a lemon or scams.

Cars at some of the auctions start off at $100 dollars. To complete a sale after winning a bid, all the buyer needs is a $500 cash deposit and a photo ID to secure the vehicle. Within the next 24 hours the individual has to pay the balance including tax, tag and title fees.

Buying a repossessed car at auction is a great way to get a better vehicle than your budget may allow, just be sure you have the car inspected properly to make sure you’re not purchasing a auto money pit.