Repo Cars for Sale
Americans often overestimate their ability to pay for a new car. They may get into a credit crunch, have unexpected expenses or lose their jobs. They may simply have overextended themselves. Consequently, their cars are repossessed. Many times it costs the bank more money to store the car than to sell it, so they place it for auction. Their loss is your gain.
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CarAuctionINC.com | Review | ||
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Car-Auction.com | Review | ||
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Gov-Auctions.org | Review | ||
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SeizeCars.com | Review | ||
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TheCarPass.com | Review |
Where do repossessed cars come from?
Banks place repo cars for sale after a buyer fails to make his payments on time. He usually is given an opportunity to catch up on payments. If he cannot, the bank will sell the repo car in an attempt to recover some of the money it lost on the loan. In order to buy repo cars, you will likely have to deal with a private auction house.
Why should I buy from a repo car auction?
The repo trucks and cars in these auctions average only 2-3 years in age, have been driven less than 40,000 miles and have had only one previous owner. On top of that, they can be purchased for up to 90 percent off the retail price. You don’t have to deal with high pressure sales tactics on a used car lot, and you don’t have to wonder if you are buying someone else’s problems through a private sale. In short, you set the price you want to pay, and you can walk away from the deal at any time if the price isn’t right.
What can I expect to pay for a repo car?
Banks and credit unions sometimes will sell repossessed vehicles at a loss because it costs more to store it than to sell it. They already have taken a loss on the vehicle when it was forfeited, so why should they spend even more money to store it? It only makes sense for them to sell it. How good of a deal you get on a repo truck or car depends on whether the previous owner was upside down on his loan. (Whether he owed more than the car was actually worth.) If he wasn’t upside down, the bank likely will try to recover only what was owed, creating the best deal possible for you. Make sure you know the blue book value of the auto you are interested in and don’t get caught up in the excitement of the auction and overbid.