When someone can’t make the payments on a loan or mortgage then the lender – often a bank – has to be able to get back the money they’ve lost somehow. Often this is accomplished by repossessing the home or car to sell at an auction. For banks it’s more important to get the majority of their money back quickly than it is to wait months to get the best price which is why you can often get discounts at bank repo auctions.

The exact price of the house depends on a number of different factors including who is at the auction and where the auction is held. You need to be willing to pull out of the bidding if it gets to a certain level because the competitiveness of the bidding is often down to luck and it’s hard to tell what it’s going to like beforehand. Set a strict upper ceiling to you bidding that you won’t cross no matter what so you can avoid the problems that go along with overbidding.

There are some things to keep in mind if you’re buying from an auction though. First of all, if you have the highest bid and that hammer comes down then you’ll have to pay the deposit on the item – often 10% when it comes to houses – immediately. Because of this you need to be sure you have the funds available. Also, unlike buying a house from an estate agent  at an auction once you’ve won you can be certain that the house is yours and won’t be open to better bids.

As you don’t get a second chance when you’re buying bank repo homes from an auction it’s important that you thoroughly inspect the house before making the decision to bid on it.  The same goes for any other items such as bank repo cars and boats.  You definitely don’t want to be faced with any unexpected surprised when you move in!

When a car is repossessed the sale value of the car drops. The reason for the decline in sale value is because bank repossessed cars are normally sold at auctions. People, rather they are individual buyers or dealers, who are lucky enough to find out about these auctions do it for one purpose – to buy repo cars for sale for a fraction of the their actual value.

Finding Bank Repo Auctions:

In the U.S. many banks have their own websites that will list their repossessed homes, repo boats, cars and more, if your bank doesn’t have a website calling them or better yet visiting them and asking the bank manager directly can prove fruitful. There are also many online services offering state by state auction listings.

Tips On How To Buy Bank Repossessed Vehicles

Here is a tip that may save you some money, you can visit www.US.gov and enter a search term like “florida auctions” , “california auto auctions” etc and you’ll be provided with results of many different types of auctions. With a little elbow grease and time you’ll uncover many auctions in your state.

Determine Your Car’s Value:

Before attending an repossessed car auction you should have a rough idea on what they’re selling for beforehand. Do a search on sites like nada.com, edmunds.com or kbb.com (Kelly Blue Book). If you know the type of car, truck or boat you’re looking for you enter a variety of search terms based on it’s year, make, model, mileage etc, this will give you a price range for retail, trade in private party sales.

Now Your Price Before The Auction:

If you’re going for one of the many bank repos around, you are likely are doing so to get more car for your money. This being the case, you want to pay a wholesale price, this will allow you to obtain a more luxurious ride for your budget. (Just make sure the vehicle is in good shape or factor neccessary repairs into your budget.)

Keep Your Head Straight

Auctions houses and auctioneers want to create bidding wars, the higher they’re able sell the vehicles for the more they pad their bottom line, set your budget ahead of time and don’t get caught up in a bidding war.

Don’t Buy A Lemon

Most auctions allow you to inspect the cars ahead of time, if you want to make sure you’re not getting a piece of junk a carfax report will go a long way, if it raises suspicion move on and don’t waste your money. Whenever possible take a qualified mechanic to give his/her opinion even if you have to pay them for their time, it will be money well spent. Danger signs on a vehicle include:

• Dents and scratching
• Bald or extremely warn tires
• Do it yourself body repairs
• Oil and fluid leaks
• Dirty, ripped or unusually worn interior

The physical condition of bank repossessed cars can fall in between any where from maintained/well taken care of vehicles to neglected/never been serviced vehicles.  There are many online auto auctions popping up these days, they appear to offer a great deal on vehicles but without the opportunity to inspect the vehicle you’re taking a big risk on it’s actual condition, many online auctions offer a grace period for you to inspect the vehicle but this will be an added expense in most cases that needs to be factored into the price.

Did You Know: The Other Side Of Selling Bank Repossessed Cars

Bank repo cars for sale can be seized as soon as there is a default on the loan or lease. After the vehicle is taken over by the bank they normally resell it at auction be it private or public. Some states require the bank to notify you of the time and date of the auction. If you’re a victim of a car repo you may have a short window to redeem or buy back your car if you’re able to satisfy the loan in full plus penalties and costs associated with the repossession including lawyers fees, repo company charges etc.

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 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.