Are you thinking of buying yourself another car? Are you thinking of buying a car that you have always wanted? Well, you have to know that buying a brand new car is not the only way to get the car of your dreams. One way to get the car you want without having to pay as much is by purchasing bank repossessed cars for sale.
Bank repossessed cars for sale are usually sold off at repo car auctions so you must know a thing or two before you start bidding with your own money. Read on to know some important facts as well as common but crucial advice when dealing with various kinds of sales and auctions for repossessed cars.
1. Where do bank repossessed cars come from?
Repossessed cars for sale are used cars. When we say used cars, it does not necessarily mean that the vehicles involved have too much wear and tear on them. In fact, vehicles which are repossessed by banks are often near their brand new condition. The previous owners of these cars have probably not met their payment terms despite the chances to pay given by the banks. Now, as part of the agreement, a buyer will have to give back his car if he cannot abide by the sale terms. In essence, these repossessed cars are almost new and are in good running condition but they have to be sold off to other interested buyers who can pay for them even at much lower prices.
2. How much can you save when buying a bank cars from repossessed?
Buying a repossessed car for sale either from the bank or the government can usually give you an amazing slash off the retail price. In fact, you can get as much as 30-70% off the car’s retail price. For this reason, being able to bid for a car in an auction is considered to be a great opportunity to buy an excellent (even a luxury) car with the best deals.
3. Where can you know about bank repossessed car auctions and sales?
The first place that you should rely on is the bank. Banks often have their own form of announcement whenever they will be holding repossessed car auctions. Despite these announcements, do not expect it to be widely advertised as banks do not need to go into great extents of advertising such events. It would be better if you have direct contacts which can provide you such sale or auction information. Another way to get updated auction or sale schedules for bank repossessed vehicle is by using online resources. There are several websites which specialize in repossessed or seized car auctions. You simply have to go online to know the car auction and sales schedules in your area.
4. What’s the big deal with repossessed cars?
The answer to this is quite simple: bank repossessed vehicles are great car deals which should never be allowed to pass on. You can buy the car you want for yourself or you can also buy a car that you can resell for profit.
The Pros and Cons of Bank Repo Cars For Sale
It is unfortunate that the economy is taking a plunge and many people are losing their hard earned assets for defaulting on their bank loans. Some of these defaulters are losing their cars, houses and businesses because they were unable to keep their promises to clear their debt before their loan period ended. This article covers in depth about repo cars for sale and their advantages. Make sure that you read through the article for a chance to discover the pros and cons o buying a repo car and how to go about finding the right car that would not turn out to be a lemon.
First of all, make sure that whenever searching for repo cars for sale always make sure that you have seen the product before making your investment. Don’t be in a hurry to buy a car without inspecting it and also ensuring that it is in a working condition. These cars are always sold in some kind of auction so make sure that you visit the auction physically, look at the car and see if it is worth your investment.
If it is a fixer upper that you are after then these auctions is the best place that you can find a car that you can make from the ground up. A recent survey indicted that repo cars have over 80% damage, so do not trust the word of the auctioneer.
Repo cars for sale always have a faster transaction rate than buying a car at the showroom, as it Is believed that an owner has to buy a car that is ready to be driven. It is convenient buying a repo car but the main point is that don’t rush into decisions that will haunt you for the rest of your life. These cars may fly off the parking lot of the auction yard but they are mostly damaged and if you are lucky and find a car that is near mint condition then don’t hesitate to get it at once.
There is also the issue of cheep prices on the repo cars. Many lenders want their money without delay so they lower the prices of these cars, and if you really want to own a car and don’t want to break a bank account then this is the best way to go. The cars are priced at a lower rate so that they can sell fast and the lenders get their money back. You can be at the 1% category and be lucky by finding a new car at the auction yard. There is always a chance that the repo guys repossessed a car that was new and they have to dispose it.
Another advantage is the fact that, there is few or less paper work for you to fill out whenever you are buying a repossessed car. They ensure that whenever a customer walks in to their auction center they have already checked the vehicle, and are ready to bid for the product. These cars are sold and at the fall of the hammer a certain amount of money has to be deposited with the remaining amount expected at a certain time. Some auction companies go a step further by requiring that there is a certain amount of money that is deposited with them to eliminate jokers from the auction. They do this so that when a certain time frame passes and you haven’t cleared the remaining balance then you forfeit the car and the amount deposited with them.
So always make sure that you have done your research and that you always know what you are buying from the car repo auction yards. Ensure that you have checked and double checked the cars and compare with the price it is being sold. This will bring some sense of clarity so that you don’t end up with a lemon for a car.
Also make sure that you have enough funds for when you are going to bid for the car. These auction companies may take your deposit but be ready to loose the money whenever you default on the remaining balance. Also take note not to over bid at what you think the car may cost.
In conclusion make sure that you are always careful whenever you are searching for repo cars for sale. Don’t let rush decisions make you own a lemon. Take your time at the auction yards and find the right car that will always serve you right. Make sure that you find the car which will serve you for a long time without it being a burden in the future.
Tips for Buying at Repo Car Auctions
Some people are a bit scared to buy cars at repo car auctions because the processes involved are very different from purchasing cars from ordinary car dealers. For auto auctions, you need to register and join a bidding process before you can buy the car. Some people think that it is a bit of a hassle to do all that. But the truth is, you can benefit a lot if you know how to properly buy cars at one of these repo car auctions. If you are a beginner and you do not know a thing about repo auto auctions, then here are some tips that might prove helpful.
• First, make sure that you have the money to pay for a car. Most repo car auctions require their customers to pay using checks, and if your check bounced because of lack of funds in you bank account, then you are in big trouble. Since cars are a bit expensive, it is best to save money a few months ahead of the repo auctions so that it is not too difficult to pay for the car.
• Go to the site hours before the actual start of the auction. You need to go there early before the customers start to arrive so that you can check the cars thoroughly without distractions. By doing so, you will know what you should be focusing on and you will know that you are getting the best among the lot after thoroughly inspecting it.
• Inspecting a car at repo car auctions does not mean staring at it for hours while talking with other people how cool the car looks. Pay more attention to more important things such as engine, documents, VIN stickers, electrical parts, and so on. You will not know if the engine is in good condition or not if you do not test drive the car and if you just keep on staring at it. Of course, you need to get permission from the auctioneer if they allow test driving their items for sale.
• You should research on the market value of the car that you are planning to buy. This is to make sure that you are paying for something which is really worth it. You should get yourself books that provide you with the current market value of certain cars. You can also go online to research on this.
• Once you have won the bidding, the auctioneer will give you a contract. Read the contract carefully before affixing your signature on it, no matter how small the letters are or how long the text is. It is your responsibility as a buyer to know what you are getting yourself into. One important thing that you should take note of is the number of days you need to wait before you can get the car’s title. For instance, if the contract says 5 days, then you should wait for five days. But if after 5 days you still do not have the title with you and it is because of the auctioneer’s negligence or fault, then you can get a refund because it can be considered as a breach of contract.