It's possible for car shoppers to find cheap repo car sales at many places. If it's money you're looking to save, cheap repo cars might be just right for you.
What Are Repo Cars?
Repo stands for repossession. Repo cars are vehicles that have been repossessed by banks, financial institutions, and auto lending companies if a buyer defaults on a loan. It is perfectly legal for finance companies to repossess cars where the buyer has defaulted and the finance company is the lienholder. When the buyer signed that finance contract to purchase the vehicle, they promised to make equal monthly payments to the lender and use the car as their collateral for the loan. Keep in mind that repo cars are different than cars that have been seized by police or government entities.
Where To Find Cheap Repo Car Sales
Repo cars are usually sold through public auctions that are posted in the newspaper. Other repo cars can by found by calling lenders, financial institutions or auto loan companies and inquiring if they have any repo cars for sale to the public. If you plan to purchase a repo car this way, it's best to buy locally or in a town near you. Buying a cheap repo car will allow you to actually, see, feel, and possibly test-drive the vehicle before you buy.
You can also browse the Internet for repo car auctions. Many companies hold online auctions or a combination of online and in-person auctions. These auctions are open to anyone but some will charge a small fee for you to bid, usually between thirty and sixty dollars. Here are some online auctions you can explore:
- Repos4sale - This company is owned by Schultz Auto Brokers and does not charge a fee to bid on their repo cars for sale. Once on the website, click on the type of vehicle you are looking for, car, truck, minivan or SUV, and listings will appear. Each listing has a firm price based the Kelley Blue Book value. The vehicles are located in Michigan and they warn to contact them as quickly as you can as vehicles move fast.
- RepoFinder - This company offers a unique way to find and buy cheap repo cars. No registration is required and all you do is click on the state that you're interested in and a listing of banks and credit unions will appear. Next, browse vehicles and contact the credit union or bank directly to make an offer.
Tips For Buying Repo Cars
Keep these tips in mind if you are considering buying a repo car:
- Price - Find out what book value really is on your own. Visit NADA or Kelley Blue Book. Get as much information, including the vehicle identification number or VIN before you seek a value.
- Buying Guides - Read buying guides for repo cars, just as you would any used car. Print out the Buying a Used Car Checklist to aid you in your purchase.
- CarFax - Ask the auction house or finance company if they have a CarFax report on the repo car. A CarFax report will tell you about prior owners, accidents, and warranty repair history. If they don't have a CarFax report, get the VIN number and run one on your own.
- Transport Charges - If you're buying a repo car from a place far from where you live and will require transportation, find a reputable transport company. Obtain more than one bid.
- Insurance - Find out how much it will cost to insure a repo car that you're interested in buying. Often, you might get a low price on the vehicle but the insurance is more than you want to pay.
Finding cheap repo car sales is easy if you make some phone calls, read the newspaper legal sections, or browse the Internet. Use smart sense when buying a repo car and ask as many questions about the vehicle as you can before you buy. .