Repossessed Cars - Buy Cheap Cars at Repo Auctions

Repossessed Cars - Buy Cheap Cars at Repo Auctions
Is it possible to get good prices at repo car sales?

When the economy is bad and people are having financial troubles, automobile repossessions increase. It's an unfortunate situation for those whose vehicles are being repoed when they can no longer afford the monthly payments. However repo car auctions present an opportunity for other buyers who are looking for cheap cars — if you know how it works and what to do.
How it happens





When a car owner fails to make payments or voluntarily returns his car to his loan company, he becomes "in default" on his loan. Sometimes it is possible to work out deferred payments or other arrangements to prevent a repossession.

Otherwise, the loan company or bank can recover the car and sell it at auction to recoup some or all of the amount remaining on the loan. Repossessions, even if voluntary, should be avoided if possible because the effects are serious and long-lasting.

However, in many cases, a repo is unavoidable. The vehicle is picked up (or voluntarily returned) and sold at a repo auction, usually by a professional auction company, or sold from the parking lot of the bank ("bank sale").
How it works

Repo car auctions are much like any other auction. Most are live and are conducted regularly in announced locations in both large and small cities around the country. Some repo auctions have web sites and allow Internet bids.

However, it is recommended that you attend live auctions where you are able to inspect the cars and possibly start them up. You will not be able to test-drive them however.

Therefore, you should know something about cars (or take someone with you who does) and bring a used-car pricing guide such as those from NADA Guides or Kelley Blue Book.

The cars at repo auctions are sold “as is." However, there is normally an inspection period prior to the auction, which can take place a day or two or even a few hours before the auction starts. You should take advantage of the inspection period to see what is being offered and get an idea of the vehicles' conditions.

You should also attend a couple of car auctions before you become serious about buying. That way, you learn the rules and procedures of the auction. All auctions are a little different and may have different rules.
Are repo cars good to buy?




Certainly. Repossessed cars can come in a wide variety of makes, models, ages, mileages, and conditions just like any other used cars. Some are almost new, in excellent condition, and could have come from some unfortunate owner who took good care of his cars, but just lost his job and could no longer afford the monthly payments.

Other repo cars are just average cars, in average condition, with average miles. The owners could have suffered an illness, a divorce, or had other financial troubles. There is nothing wrong with the cars.

We sometimes hear other people giving misinformed advice about buying repo cars saying that the cars have been abused when the owner realized he was going to be returning his vehicle. There may be cases like that but, in general, it is simply not true. That is not say that there are no junk cars at repo auctions. There are. But part of being successful at buying repossessed vehicles is knowing how to recognize the junkers.
What's the catch?

There is no catch except that you might have competition when bidding at a repo auction – like any car auction. Some of the other bidders may be used car dealers. If a particular car being bid on is an attractive, clean, low-mileage car, there might be a number of bidders who want the car and might bid the price up. The secret to successful auction buying is knowing when to stop bidding. Know your car values (from your price books) going into the auction and pay no more than a car is worth.

Of course, if there are few other bidders, or no other bidders, on a particular car, you have the opportunity for getting a real deal. These are the opportunities that make car auctions so exciting.
Where to find repossessed car auctions




There are national, regional, and local independent car auctions companies that sell repo vehicles. Nationwide companies such as Manheim hold regular auctions all over the country. Some are private dealer auctions and some are public. You can check their web site for schedules.

Other auction companies are regional, such as Sierra Auctions in Arizona, or local, such as Charity Car Auctions in Arlington, Texas.

Look in local newspapers for car auction announcements, locations, and schedules. Also check in the free "autotrader" magazines found in local supermarkets and auto parts stores. Search the Internet.

You can also call local banks, credit unions, and loan companies to find out how and where they sell their repossessed cars. Some small banks simply put "for sale" signs in the windows of their repo cars and display them in their front parking lots.
What should I expect to pay at a repo car auction?

There is no good answer to that question. It depends on the condition of the cars, the mileage, the popularity of the make and model, and if there are other bidders.

If there are used-car dealers at the auction, they will be bidding no more than wholesale (trade-in) value. If you bid slightly higher, you might still get a good deal — a price that is a little higher than wholesale but much less than retail. Your best opportunity for a good deal will be on cars that have no other bidders, or only a couple of other bidders who may not be serious.
Summary

Buying cars at repossessed car auctions offer the chance to get great deals, if you know what you are doing and take care not to over-bid. Repo vehicles can be the answer to your search for cheap cars.

<title>where to buy used cars</title>

<meta name="keywords" content="where to buy used cars, Car Auctions for Good Cheap Cars, Repairable Salvage Cars and Project Cars, Repossessed Cars - Buy Cheap Cars at Repo Auctions, Best Car for Teenagers, Cheap car tips, Best Used Car Web Sites, Leasing used cars explained, Used Cars For Sale ">

<meta name="description" content="finding used cars online easier ">