When a bank or credit company gives you a loan for a car, they charge a set rate of interest. If you don’t pay the fixed installments on time, then the lender can repossess your car without any notice. They sell these repossessed vehicles or repo cars to recover their costs.
The financing companies use a tow or pickup truck with a boom, or they may possess the key. Sometimes, they may even pick the lock. These companies sell these vehicles regardless of their condition.
Copart is one such company that holds repo cars sales every week. Many of these vehicles come from finance companies and banks. Most of these cars are sold or auctioned with a clean title.
Some popular repo cars are Jeeps, Dodges, Chevrolets, Fords, Volkswagens, and Pontiacs. You will find over 125,000 vehicles up for auction daily. Repo car sales draw the interest of salvage buyers, consumers, dealers, dismantlers, and body shops.
Repossessions are a financial disaster for the car owner, but it can be a bonanza for bargain car shoppers as it gives them an opportunity to buy cheap repo cars on sale. Repo car sales allow consumers to save thousands of dollars on used vehicles which are in a good state. You will get budget to high-end vehicles at these sales including brands like BMWs, Jaguars, and Cadillacs.
Shopping for repo cars online means going into uncharted territory as you don’t know anything about the car’s condition. There is a difference between repo and salvage cars. A salvage vehicle has suffered damages that are worth almost 70 percent of its value.
The easiest way to purchase a repossessed vehicle is to go to a dealer who specializes in it. You can bid for the cars at an auction or buy it from a dealer. However, you must carry out a thorough inspection of the vehicle.
If a vehicle is in good shape, buyers can purchase it directly. Some companies will help you get repo cars for fixed prices. Buyers benefit as they get low-priced or fixed price vehicles at zero percent interest.
However, the traditional method for buying a repossessed vehicle is at an auction. The prices are almost always below Kelley Blue Book®’s Fair Market Range.
Auctions are a challenge for consumers. They can find all types of vehicles in different conditions, and picking the right one can be difficult. If the vehicle documentation is in bad condition, then you should walk away. Always opt for cars with clear titles.
Each car has a vehicle history with the name of the bank and the VIN in the title. Many auction houses offer customers the chance to inspect and drive the vehicles before the bidding.
In some cases, the buyers have control over the price they are willing to pay. Before the auction, you can go on eBay and look at bids for similar vehicles to get an idea about the price range for such models.
