Buy Repo Cars and Save!
This is the second part of the article on buying repo cars. For the first section, go to repossessed car auctions.
So once all the legal jargon has been sorted out, it’s time for folks like us to look to buy repo cars for as cheaply as possible. Sometimes, if state law dictates, the original owner of the vehicle will also be invited to the auction and given the opportunity to bid and ultimately buy the repo car. These ‘owners’ often drive up the price due to two main reasons:
- The higher the proceeds of the sale, the more money will go towards paying of outstanding debts. If only part of the debt is paid off, they will need to repay the rest.
Click here for repossessed car auction listings
- They may be interested to buy the repo car themselves. The previous owner knows exactly the outstanding loan amount of the bank. This puts them in a powerful bidding position. Furthermore, their original default may have only been a short term ‘glitch’ in their financial position, which would imply that they are financially capable of aggressively ‘pursuing’ their own car.
Although these scenarios have occurred in the past, it’s highly unlikely that they would want to buy this repo car. The reason is that under most laws the owner would have been given the chance to buy back the car inclusive of all legal fees and costs that the creditor had to sustain.
Why?
‘Buy repo cars!’ This is the advice many people give to aspiring bargain seekers. The fact is that there are very good deals at these auctions. The law is actually a little bit ‘hazy’ regarding the manner in which creditor companies dispose of these vehicles. There are no hard and fast rules regarding auctions, other than the guideline that the cars must be sold using a commercially sensible approach. This term can be slightly ambiguous and has historically been a bone of contention between creditors and the courts. Basically the creditors do not need to fetch the highest price for a car, or even a reasonably good level.
However, if the final auction price is massively below the normal market price, it may indicate malpractice. In order to buy repo cars, this is not your worry however. If an issue arises, it is for the courts to decide between the creditor and the previous owner. This kind of dispute will be judged by the courts against the current precedent in the marketplace. Either way it has no affect on you as the winning bidder.
Although most public auctions are conducted by governments, individuals can position themselves to buy repo cars at ‘commercial auctions’ and pick up endless bargains.
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Want to know where to find cheap repo cars?
If this is you I sincerely suggest you have a look at SeizeCars.
They have one of the most comprehensive guides for repo and government car auctions. Their database is always updated with the hottest deals in town. Click here to have a look!