Repo Car Auctions
When someone cannot make a payment on their car the car gets seized by their bank and/or dealer. The car will get sent to the car auction. These car auctions are a great way to get a barely used car for very little money. The car auctions are held all over the country and at different times and places throughout the year. These cars are still in good working condition. Their former owners could not make the payments.
These companies are getting the money back that they lost due to non-payments. These car auctions work like a bidding place, same as antiques or furniture.
What Are Repo Car Auctions
Brian cannot make his payments that he agreed to on his 2012 BMW. His bank seizes the car and it gets placed into an allotment of other cars being sold at one of many repo car auctions in the area. Someone else has the chance to bid on the car. Once the bid is won, the winner takes the car and the check goes to the company. The company then uses the check to pay off the outstanding debts that are still owed on the car.
Where To Find One
There are a few places a person can look to find Brian's car. They can call their local police office to see when and where an auction is being held. They can also check online to see where in their area these auction houses are showcasing the newest repossessed cars. eBay is another good source to find out this information. Type in the keywords and check out the results.
The Four Ways To Buy a Repo Car
There is a strategy to this. A person cannot just walk in and expect to snap one up right away. There are 4 ways that a person like Kelly can get the car she wants and at a decent price.
1) Kelly can buy from the lender or bank directly. The bank has on file lists of cars that have are currently being repossessed. They just want their money back. Kelly can score a good deal as long as she hits them at the right time. She can also talk directly to the lender.
The downside is that Kelly may have to spend some time and money fixing it up. Banks just want their money back as soon as possible. They are not concerned with "fixing it up" so it is "road-ready" for Kelly.
2) Kelly can work with a reseller service. The advantage here is that they keep up with the standards they need to. Kelly has to make a list of the make and model of the car she wants. She then contacts the service she is going to use and start negotiations.
3) Kelly can buy from a police repo or lender auction. The advantage here is that she can take a look at the stock before anything happens. She can decide on a bid and go from there. The downside is that these cars may not be "road-ready".
4) Kelly can buy from a used car dealer. The upside is that the car will look brand new before she buys. The downside is that she will be charged a premium for what she is buying.