During this recession, many individuals have experienced incredible misfortune from foreclosed homes to repossessed vehicles. Many advertisements have promoted foreclosed homes for sale, as well as a huge number of repo cars, these ads are promoting auctions where bank sell off the forfeited asset to recoup some of the outstanding loan.
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:
- They can voluntarily surrender the vehicle to the bank or…
- 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 car repo 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, repo boats and homes, campers, atv’s and more 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.
Car repos for sale at some of the auctions start off at as little as $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. Most auctions, (except online auto auctions ) require the winning bidder to pay the balance including tax, tag and title fees within 24hrs of winning the auction, remember you’ll also need to arrange for insurance before picking it up. Online auctions normally allow you 7-14 days to pay for the vehicle, the reason being they normally allow you this time to arrange for a physical inspection.
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. Remember cars aren’t the only thing you can purchase, if you’re a boating enthusiast you can also pick up a great deal on bank repo boats, in these uncertain times luxury items are often the first thing to go.
